The university model is a victim of its own success - Paper

Oct 15, 2026

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The paper argues that the university model of higher education is fundamentally sound despite perceived inevitability of radical sector change. It claims the core risk arises from the model’s very success: high demand and willingness to pay for degrees create pressures that invite disruptive forces. Using a real proposal as an example, it examines concerns about access, loan burdens, and digital disruption, and links these to the university’s dependence on international student fees and trust in academic independence.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages4

Reading Time10 min

AccessFree to download

The University Model and Perceived Change

Success Creates Risk

Foundations of Trust and Independence

Access Pressure and Funding Models

Domestic vs International Business Models

A U S T R A L I A N U N I V E R S I T I E S ’ R E V I E W The university model is a victim of its own success Matthew Mitchell Swinburne University There is a perception that radical change in the higher education sector is inevitable. This paper argues that the university model of higher education is fundamentally sound and by implication, is not necessarily subject to the same forces acting on other industries. If changes are to affect higher education, these are likely to come from forces seeking to capitalise on the success of the higher education model, and in doing so place the entire model at risk. This issue is discussed in relation to one real proposal as an example of the actual (rather than the perceived) threats to the university sector. At the ‘National Forum: Curate, Credential and Carry Forward Digital Learning Evidence’ held at Deakin University on November 13, 2014, Allyn Radford from Deakin Digital (a subsidiary organisation of Deakin) pointed out that there were vast numbers of people globally who cannot access education (Radford, personal communication, Nov. 13, 2014; Oliver n.d.) . He also pointed out that some students run up high loans to pay for higher education, and that some of these students also default on these loans. These are legitimate concerns that Allyn Radford has raised, and they are connected to the problems associated with university business models. However, he further asserted that as a result of these problems, universities must radically change,and if they do not,it is only a matter of time before some digital disruption undermines their business model. A similar claim is made by Christensen and Eyring (2012),who point to the high cost of education as one factor that may lead to disruption. I wish to tackle holistically this assertion of an inevitable disruption to higher education and its implications. First,according to the metrics of business it would seem that rather than being a failing model at risk,the university system is in fact highly successful. The fact that people want access to university education, and are prepared to pay enormous sums of money to do so, does not suggest a failing business model, but rather the opposite. In fact, I am going to argue in the following that it is the very success of the university system that most places it at risk. But before I do that let us look at the foundations of the system and its success so far. Universities have a tradition of seeking capable people as academic staff. It is the achievements and work of these academics that ensures the reputation of each institution in the global university system – and this is a system that has been subject to global forces now for hundreds of years. Perkin (2007, 159-160) states: In the interstices of power, the university could find a modestly secure niche, and play off one authority against another. Unintentionally, it evolved into an immensely flexible institution, able to adapt to almost any political situation and form of society. In this way, it was able to survive for eight centuries and migrate, eventually, to every country and continent in the world. Thus globalism is not a new‘threat’ to universities – although global competition and global reputation may have become more important as a result of cheaper travel combined with financial pressures. But let us be clear, the financial pressures are not a result of any failed business model, but are again a symptom of the success of the university system.This success has been built on the trust the community has in universities to focus on quality vol. 57, no. 2, 2015 The university model is a victim of its own success Matthew Mitchell 87 A U S T R A L I A N U N I V E R S I T I E S ’ R E V I E W (and it is reputation that has always spurred competition between institutions) . Both quality and trust grew in large part due to universities’ historic independence of business and government in relation to teaching and res

FAQs

Why does the paper say the university model is “fundamentally sound” despite calls for radical change?

It argues the model’s underlying structure remains effective, and that pressures affecting other industries do not automatically apply to higher education in the same way.

What is the paper’s main explanation for why universities are at risk?

The paper contends that the risk comes from the university model’s success—its popularity and value generate pressures that make it vulnerable to disruptive forces.

How does the paper describe the role of international students in Australian universities?

It states that international student fees subsidize costs for domestic students and have supported expansion, creating significant dependence highlighted in sector reporting.

Oct 15, 2026

Upload by Ben