The Performance-Based Funding Scheme of Higher Education Institutions

Kettunen, J. (2015). The performance-based funding scheme of higher education institutions, International Journal of Learning and Teaching, 1(2), 104-109.

Posted: 9 Feb 2016

See all articles by Juha Kettunen

Juha Kettunen

Turku University of Applied Sciences

Date Written: February 9, 2016

Abstract

The purpose of this study is to assess the new performance-based funding scheme of the Finnish universities of applied sciences. In many countries, such schemes have largely failed and have been uneven and unstable. The results of this study indicate that, in Finland, the funding scheme has improved the graduation rates, especially among male students. This study proposes the use of the balanced scorecard approach to improve the funding scheme. The learning and growth perspective of the balanced scorecard is non-existent in the Finnish scheme, which means that the funding scheme does not include the research and teaching skills necessary to achieve efficient and effective processes and high quality. Moreover, the funding scheme does not include the funding of education, which is important in market-oriented education. The research findings of this study are useful for those who want to modify the funding scheme so that all the necessary indicators are incorporated in the improved scheme.

Keywords: financing, funding scheme, incentives, performance, higher education

JEL Classification: I20

Suggested Citation

Kettunen, Juha, The Performance-Based Funding Scheme of Higher Education Institutions (February 9, 2016). Kettunen, J. (2015). The performance-based funding scheme of higher education institutions, International Journal of Learning and Teaching, 1(2), 104-109. , Available at SSRN: https://ssrn.com/abstract=2729701

Juha Kettunen (Contact Author)

Turku University of Applied Sciences ( email )

Lemminkäisenkatu 30
20520 Turku
Finland

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