Assessing Efficiency in State Universities: Evidence from the Analytical Hierarchy Process
DOI:
https://doi.org/10.26740/jpsi.v9n2.p73-85Keywords:
agencification, analytical hierarchy process, efficiency, state universities, university autonomyAbstract
The introduction of agencification in state universities, marked by the provision of varying degrees of autonomy, aims to improve service quality and operational efficiency. This study investigates the efficiency of state universities through the lens of agencification, i.e., the use of semi-autonomous or autonomous agencies to deliver public services. The Analytical Hierarchy Process is employed to identify and prioritize key criteria influencing university performance. Drawing on semi-structured interviews and focus group discussions with university managers, policymakers, and academics, we reveal twelve critical factors that contribute to efficiency. The findings reveal an urgent need for innovation across leadership, human resource management, information technology, strategic planning, and governance. The findings highlight the role of visionary leadership, effective human resource management, and stringent internal controls as the dominant criteria. We explore the challenges faced by state universities, including the complexities of autonomy models and bureaucratic constraints. The results imply that while university autonomy can enhance operational efficiency, it must be balanced with accountability mechanisms to prevent disparities. This research contributes to the efficiency scholarship by explaining actionable insights for policymakers and university managers to improve service quality in contemporary governance frameworks.
References
Agasisti, T., & Shibanova, E. (2021). Actual autonomy, efficiency and performance of universities: Insights from the Russian case. International Journal of Public Administration, 45(2), 121–134. https://doi.org/10.1080/01900692.2021.1903496
Alam, M. N., & Ahmed, T. (2024). Education quality of public and private universities in Bangladesh: Comparative perspective. Journal of Educational Management and Instruction, 4(1), 140-158. https://doi.org/10.22515/jemin.v2i2.8793
Al-Gharsi, A. Y., Belhaj, F. A., & Nirmala, R. (2024). Academic autonomy as driving change: Investigating its effect on strategy development and university performance. Heliyon, 10(8), e29536. https://doi.org/10.1016/j.heliyon.2024.e29536
Anindhyta, C., Karnati, N., & Suryadi, S. (2023). Digital leadership in enhancing research innovation culture in higher education: Avenue for further research. Journal of Educational Management and Instruction, 3(1), 9-21. https://doi.org/10.22515/jemin.v3i1.7135
Aswar, K., Ermawati, E., Juliyanto, W., Andreas, & Wiguna, M. (2022). Adoption of e-government by Indonesian state universities: An application of the Technology Acceptance Model. Problems and Perspectives in Management, 20(1), 396–406. http://dx.doi.org/10.21511/ppm.20(1).2022.32
Bertelli A. (2006). Delegating to the quango: ex ante and ex post ministerial constraints. Governance: An International Journal of Policy, Administration, and Institutions, 19(2), 229–249. https://doi.org/10.1111/j.1468-0491.2006.00313.x
Bolli, T., Olivares, M., Bonaccorsi, A., Daraio, C., Aracil, A., & Lepori, B. (2016). The differential effects of competitive funding on the production frontier and the efficiency of universities. Economics of Education Review, 52(1), 91–104. https://doi.org/10.1016/j.econedurev.2016.01.007
Chusniyah, A., & Munadi, M. (2024). Financial management of Harvard university: A common size analysis and implications for Indonesian higher education institutions. Journal of Educational Management and Instruction, 3(2), 95-105. https://doi.org/10.22515/jemin.v3i2.7802
Dahlan, M., Anas, M., Mulatsih, L. S., Alfiana, A., & Ahmad, A. K. (2024). Financial management audits for school quality improvement in Indonesia: A comprehensive literature review. Journal of Educational Management and Instruction, 4(1), 174-184. https://doi.org/10.22515/jemin.v4i1.9556
Deloitte (2013). Government Efficiency, The Government Summit Thought Leadership Series, available at: https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Public-Sector/dttl-ps-govtefficiency-08082013.pdf (downloaded: 15 March 2024).
Firdaus, M., Harmini, H., & Afendi, M. F. (2011). Application of quantitative methods for management and business. Bogor: IPB Press.
Ghoni, A. (2018). Takaful funeral development strategy in Indonesia: synergy between takaful companies and commercial funeral institutions, PhD thesis, Syarif Hidayatullah State Islamic University, Jakarta.
Glendinning, R. (1988). The concept of value for money. International Journal of Public Sector Management, 1(1), 42–50. https://doi.org/10.1108/eb002926
Graves, B. M., & Erickson, F. J. (2024). Strategic planning in higher education: Perceptions of faculty and administrators at public institutions. Discover Education. https://doi.org/10.1007/s44217-024-00351-z
Hieu, N. T., & Niem, L. D. (2024). Autonomy acquisition and performance within higher education in Vietnam — A road to a sustainable future? Sustainability, 16(3), 1336. https://doi.org/10.3390/su16031336
Hyndman, N., & Eden, R. (2001). Rational management, performance targets and executive agencies: views from agency chief executives in Northern Ireland. Public Administration, 3(1), 579–598. https://doi.org/10.1111/1467-9299.00270
Izadi, H., Johnes, G., Oskrochi, R., & Crouchley, R. (2002). Stochastic frontier estimation of a CES cost function: the case of higher education in Britain. Economics of Education Review, 21(1), 63–71. https://doi.org/10.1016/S0272-7757(00)00044-3
Kantabutra, S., & Tang, J. C. S. (2010). Efficiency analysis of public universities in Thailand. Tertiary Education and Management, 16(1), 15–33. https://doi.org/10.1080/13583881003629798
Khumalo, S. S. (2024). Characterization of higher education spatial injustices: Cases of selected Sub-Saharan universities. Journal of Educational Management and Instruction, 4(1), 1-12. https://doi.org/10.22515/jemin.v4i1.8712
Kim, N., & Cho, W. (2014). Agencification and performance: the impact of autonomy and result-control on the performance of executive agencies in Korea. Public Performance & Management Review, 38(2), 214–233. https://doi.org/10.1080/15309576.2015.983826
Lægreid, P., & Verhoest, K. (2010). Introduction: reforming public sector organizations. In Lægreid P. and Verhoest K. (eds.) Governance of Public Sector Organizations: Autonomy, Control and Performance. Basingstoke: Palgrave Macmillan, 1–18.
Lai, P., Potter, A., Beynon, M., & Beresford, A. (2015). Evaluating the efficiency performance of airports using an integrated AHP/DEA-AR technique. Transport Policy, 42(1), 75-85, https://doi.org/10.1016/j.tranpol.2015.04.008
Laila, N. (2020). The development of sovereign sukuk in Indonesia. International Journal of Innovation, Creativity and Change, 11(11), 636-648. https://doi.org/10.33403/rigeo.800655
Laufer, M., Deacon, B., Mende, M. A., & Schäfer, L. O. (2024). Leading with trust: How university leaders can foster innovation with educational technology through organizational trust. Innovative Higher Education, 50, 303–327. https://doi.org/10.1007/s10755-024-09733-5
Marlia, M. A., Fahmy, R., Lukito, H., & Games, D. (2025). An exploratory study on effective leadership and change management in the transformation of Indonesian public universities towards world-class university status. Sustainability, 17(3), 1300. https://doi.org/10.3390/su17031300
Mergoni, A., & De Witte, K. (2022). Policy evaluation and efficiency: A systematic literature review. International Transactions in Operational Research, 29(3), 1337–1359. https://doi.org/10.1111/itor.12979
Monga, R., Aggrawal, D., & Singh, J. (2020). Application of AHP in evaluating the financial performance of industries. In Ram, M. (ed.) Advances in Mathematics for Industry 4.0. London: Academic Press, 319–333.
Ngo, J., & Meek, L. (2019). Higher education governance and reforms in Indonesia: Are the matrices of autonomy appropriate? Journal of International and Comparative Education, 8(1), 17–30. https://doi.org/10.14425/jice.2019.8.1.17
Overman, S. & Van Thiel, S. (2016). Agency and public sector performance: a systematic comparison in 20 countries. Public Management Review, 18(4), 611–635. https://doi.org/10.1080/14719037.2015.1028973
Özcan, E., Unlüsoy, S., & Eren, T. (2017). A combined goal programming – AHP approach supported with TOPSIS for maintenance strategy selection in hydroelectric power plants. Renewable and Sustainable Energy Reviews, 78(1), 1410–1423. https://doi.org/10.1016/j.rser.2017.04.039
Saaty, T. (1982). The analytic hierarchy process: a new approach to deal with fuzziness in architecture. Architectural Science Review, 25(3), 64–69. https://doi.org/10.1080/00038628.1982.9696499
Siregar, K. E., & Putra, A. M. S. (2024). Enhancing governance in Indonesian legal entity state universities: Insights from global best practices. Journal of Educational Management and Instruction, 4(1), 101-112. https://doi.org/10.22515/jemin.v4i1.9158
Stiglitz, J., & Rosengard, J. (2015). Economics of the public sector. London: WW Norton & Company.
Tusriyanto, Siminto, & Az Zaakiyyah, H. K. (2024). Innovative strategies to enhance the quality of higher education management: Human resource development and the critical role of communication. Journal of Contemporary Administration and Management (ADMAN), 2(1), 331–336. https://doi.org/10.61100/adman.v2i1.128
Van Thiel, S. (2011). Comparing agencification in central Eastern European and Western European countries: fundamentally alike in unimportant respects. Transylvanian Review of Administrative Sciences, Special Issue, 15-32. Retrieved from https://rtsa.ro/tras/index.php/tras/article/view/241/235
Verhoest, K., Van Thiel, S., Bouckaert, G. & Lægreid, P. (2012) Government agencies: Practices and lessons from 30 countries. New York: Palgrave Macmillan.
Vining, A., Laurin, C., & Weimer, D. (2015). The longer-run performance effects of agencification: theory and evidence from Quebec agencies. Journal of Public Policy, 35(2), 193–222. https://doi.org/10.1017/S0143814X14000245
Witte, K. D., & López-Torres, L. (2017). Efficiency in education: a review of literature and a way forward. Journal of the Operational Research Society, 68(4), 339–363. https://doi.org/10.1057/jors.2015.92
Wynen, J., & Verhoest, K. (2016). Internal performance-based steering in public sector organizations: examining the effect of organizational autonomy and external result control. Public Performance and Management Review, 39(3), 535–559. https://doi.org/10.1080/15309576.2015.1137769
Yamamoto, K. (2006). Performance of semi-autonomous public bodies: linkage between autonomy and performance in Japanese agencies. Public Administration and Development, 26(1), 35–44. https://doi.org/10.1002/pad.369
Yudianto, I., Mulyani, S., Fahmi, M., & Winarningsih, S. (2021). The influence of good university governance and intellectual capital on university performance in Indonesia. Academic Journal of Interdisciplinary Studies, 10(1), 57–70. https://doi.org/10.36941/ajis-2021-0006
Downloads
Published
How to Cite
Issue
Section

