Strategic Management Practices in Higher Education: Analysis of Perceived Efficiency and Effectiveness in Comprehensive Universities in Ethiopia
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Date
2026-04-05
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Addis Ababa University
Abstract
This dissertation examined the perceived efficiency and effectiveness of strategic management practices (SMPs) in Ethiopian public comprehensive universities. An explanatory sequential mixed-methods design (QUAN→QUAL) was employed. Quantitative data were collected from 744 respondents across eight universities, while qualitative evidence was generated through interviews, focus group discussions (n = 75), and document analysis. Data were analyzed using SPSS version 27 and SPSS AMOS version 23. The findings revealed that environmental scanning demonstrated moderately institutionalized, with SWOT analysis widely utilized, whereas advanced tools such as PESTEL analysis, stakeholder analysis, and student needs assessment remained largely underutilized (M = 2.75). The measurement model demonstrated excellent fit(χ²/df = 1.378; CFI = 0.962; TLI = 0.965; RMSEA = 0.068 with acceptable reliability (α = .76), while Structural Equation Modeling (SEM) confirmed that environmental scanning had strong positive and statistically significant effects on efficiency (β = 0.61, p < .001, R² = 22%) and effectiveness (β = 0.65, p < .001, R² = 18%). Strategy formulation was weak and insufficiently institutionalized (M = 2.48). Although universities demonstrated relative strength in developing mission and vision statements, they faced major limitations in setting SMART goals, prioritizing strategic actions, and allocating resources effectively. The measurement model demonstrates excellent fit(χ²/df = 1.378; CFI = 0.962; TLI = 0.965; RMSEA = 0.068), with strong reliability (α = 0.83), while SEM results indicated that strategy formulation positively influenced efficiency (β = 0.28, p < .001) and effectiveness (β = 0.18, p < .001). Strategy implementation was similarly weak, centralized, and resource-constrained (M = 2.49), with limited structural alignment and incentive mechanisms. The measurement model demonstrated excellent fit (χ²/df = 1.167; CFI = 0.992; TLI = 0.991; RMSEA = 0.069) with strong α = 0.81), indicating consistent, while SEM results confirmed significant positive effects on efficiency (β = 0.32, p < .001, R² = 23%) and effectiveness (β = 0.28, p < .001, R² = 19%). Likewise, M&E shows a moderate overall level (M= 2.68), indicating it is not fully institutionalized. The measurement model demonstrates good fit (χ²/df = 1.263, GFI = 0.852, CFI = 0.989, TLI = 0.998, RMSEA = 0.065) with strong reliability (α = 0.87), while SEM results confirm that M&E has a positive andsignificant effect on both efficiency (β = 0.31, CR = 5.01, p < 0.001, R² = 21%) and effectiveness (β = 0.37, CR = 5.12, p < 0.001, R² = 18%). Overall, SMPs were moderately institutionalized and characterized by top-down approaches, weak stakeholder participation, limited communication, resource constraints, and unstable policy environments, which undermined universities’ ability to achieve strategic objectives. The study recommends strengthening institutional autonomy, performance-based funding, participatory planning, governance systems, and infrastructure to improve strategic efficiency, effectiveness, and sustainable institutional transformation
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Keywords
Strategic management practices, Higher education institutions, Perceived efficiency, perceived effectiveness, comprehensive Universities