International branch campus: sequential market commitment

Abstract

Offshoring education services in a form of a branch campus is analysed in this paper as an international market entry in higher education. It is discussed in this paper that the latter activity is not only feasible for the mature universities with long standing international experience, but also for the latecomer HEIs. The extensive literature review has been executed in order to compare the motives of foreign market and market entry mode related decisions in business and higher education. A comparative analysis showed that the determining factors are very coherent in business and higher education. The model of foreign market entry is suggested which combines two internationalisation modes: networking and branch campus. The model enables universities to pursue proactive initiatives step by step towards the direct export of educational services gradually decreasing risk levels. 8 phases are suggested containing relationship development, resource management, risk reduction strategies, feedback, etc. The insights of this study shed light on the international branch campus as the riskiest international market entry mode in higher education and provide recommendations for the managers of HEIs.