Value creation for stakeholders in higher education management

Abstract

The article deals with value creation measurement issue in public Higher Education Institutions (HEIs) and discuss the linkage between selected Key Performance Indicators (KPIs) and new multicriteria Factor Relationship (FARE) method capability to present accurate results when one of the Lithuanian universities is chosen. In order to enhance the precision of the results, the specifi c stakeholder group according to their power and willingness to cooperate was used as the basis for selected KPIs. Based on the stakeholders’ distribution the employees from the group with the highest power and cooperation level were chosen as a target group. The selection process was diverted to the criteria groups of effi ciency and internationality regarding to value creation process when public university is considered as a benefi ciary of value created. The employees of the university were compared against 6 criteria, 4 of which characterize specifi c performance of various types of employees based on internationality aspect which was considered as important component in overall performance, 1 refer to fi nancial performance activities and another 1 respond to resource contribution towards internationality in university as a whole. The minimum amount of initial data of the relationship between the chosen criteria group was taken from experts and used as the basis for analytical evaluation of other criteria groups’ relationship. Based on the new Factor Relationship (FARE) multi-criteria evaluation method, results concerning importance of each criterion were measured. The fi ndings showed which KPIs group plays the highest role in value creation process of selected Lithuanian university. The results showed that the most important criteria groups were professors’ internationality as well as Service and Administration Resources Environment. These two components had the highest importance weights compared with other criteria groups.