Abstract
This article discusses the role of university reputation in economic recovery, particularly in crisis situations. It highlights the importance of maintaining a good reputation for universities. Especially after Brexit, and during the covid pandemic, the burden of compensating the detrimental effects of existing from European Union has been on HE industries’ shoulder. However, the role of HE industry in helping UK to bolster up the economy has been ignored. However, ‘Regional Disparity’ could limit the impact of high-reputed universities.
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1 Introduction
During 2020, the total gross domestic product (GDP) for the entire globe decreased by 3.4% (Statista, 2023). According to a report by the UK parliament, the COVID-19 pandemic has caused a severe economic downturn in the country, with GDP dropping by 11% in 2020 during the first national lockdown, the largest decline since records began in 1709 (Philip Brien et al. 2022). This unprecedented situation has presented challenges for many businesses (Kapucu and Hu, 2022; Rodrigues et al. 2021; Siddique et al. 2021; Yang, 2020).
Biggest Exporting Industries in the UK in 2023, are respectively, Precious Metals Production in the UK ($61.9B), Aircraft, Engine & Parts Manufacturing in the UK ($23.4B), Motor Vehicle Manufacturing in the UK ($18.8B), Pharmaceutical Preparations Manufacturing in the UK ($16.5B), while according to UK government website, in 2010, the revenue from education-related exports and transnational education (TNE) activity was 9.53 billion pounds, followed by an increasing trend reached to 25.6 billion pounds in 2020 (The most recent statistics published by UK government, which cover the time period until 2020). So, UK politicians are totally aware of the significant role of HE industry in economic like providing cheap labour, high quality experts, solving issues regarding Brexit, etc. make them to support internalisation.
In HE industry, universities need to fulfill the roles of teaching and research, knowledge transfer, employability, and community outreach but also, social and economic mission (Schlesinger et al. 2015). Moreover, satisfying stakeholders’ expectations (Agrey and Lampadan, 2014; Angulo-Ruiz et al. 2016; Broekemier and Seshadri, 2000; El Nemar et al. 2020; Germeijs, 2012) is another requirement for universities. Furthermore, these expectations have been risen by globalization, advent of technologies (Nielsen and Thomsen, 2018), degree of internationalization, and changes in the market (Del-Castillo-Feito et al. 2019).
However, the HE industry in the UK has performed differently, making a significant economic contribution. In 2018–19, the HE industry in England contributed £95 billion to the economy and grew by around a quarter between 2014–15 and 2018–19, supporting over 815,000 jobs across the country (Economics, 2021). According to data from the National Centre for Entrepreneurship in Education, partnerships with universities in the UK can play a significant role in accelerating the country’s post- pandemic recovery (West, 2021) by creating jobs and boosting economic prosperity. For instance, the University of Oxford (The University of Oxford, 2021), University of Cambridge, and University of Manchester contribute significantly to the UK economy and support thousands of jobs (28,790, 24,700 and 13,970 jobs subsequently) (University and College Union, 2020).
Based on a report by the UK parliament (UK Parliament, Hansard, 2022), universities in the country are significant contributors to the economy, as they attract a large number of international students and contribute £25.9 billion to education export earnings. In addition, the Department for Education and Department for International Trade have launched a new International Education strategy to increase education exports to £35 billion per year and raise the total number of international students to 600,000 by 2030 (Government, 2019; Hubble and Bolton, 2021; O’Malley, 2019). However, UK higher education institutions (HEIs) are facing crises like the COVID-19 pandemic, which are leading to disengagement (Burkinshaw et al. 2018; Burns et al. 2020; Hazelkorn, 2020) and de-globalization (Allen et al. 2020; Mok et al. 2021; Pan, 2021) through restricting international mobility (Bilecen, 2020; Guruz, 2011; Marginson, 2017; Zotti, 2021) leading in several challenges like funding problems (Corbett and Gordon, 2018; Marginson, 2017; McKinny, 2020), fall in student numbers from the EU (Mathies and Weimer, 2018; Mayhew, 2022; Thompson and Johnson, 2023; Tsiligiris and de Ruyter, 2018), the shaky future of the Erasmus scheme (Brøgger and Moscovitz, 2022; Brooks and Waters, 2023; Kleibert, 2023), etc.
According to oxford dictionary, reputation is the opinion that people have about what somebody/something is like, based on what has happened in the past. Reputation is derived from one’s expectations and beliefs about how they have been treated by other entities in the past (Mui et al. 2002). It seems that definition of reputation by (Fombrun, 1996) as a perceptive representation of an organization’s past behaviours as well as an estimate of its future behaviours, or as the universal appeal that an organisation has for its key constituents in comparison to others, is most frequently used today.
The gap of neglecting the role of university reputation in the context of economic recovery in a crisis situation is significant since, as numerous scholars studied the impact of crisis and economic or financial matters on performance or efficiency of universities. Therefore, the results of previous research like studying the effects of economic crisis on universities (Harvey Chaputula, 2011; Lee, 1999; Okpala et al. 2011), the economic crisis effect (the financial crisis in 2008) on Italian and German university efficiency (Lehmann et al. 2018), the economic crisis effect (the 2008 economic crisis) on the (in)efficiency of Spanish public Higher Education institutions (Martínez-Campillo and Fernández-Santos, 2020), US seven economic crises effect (1953, 1957, 1990, 1973, 1980, 2001, 2008) on university research and development investments (Daim and Ozdemir, 2015), east Asian economic crisis (1997) on Indonesian HE (Purwadi, 2001) showed the significant negative role of crisis on the efficiency of universities.
However, the statistics mentioned earlier revealed despite these obstacles, not only UK universities have passed challenges (Hilman, 2021) but also, the UK has achieved its international student target a decade early, allowing the government to establish a more discerning and smart approach (Holmes and Partners LTD Immigration consultants, 2022). The focus now is on how HE industry could boost economy and help to recover it while facing several crises. Whether British universities’ reputation plays a role in economic recovery which in the following, by using traditional literature review will be discussed. Therefore, the research question is:
What is the role of UK universities’ reputation in the economic recovery during times of crisis?
2 Method
The study used a traditional literature review design to identify, screen, and eligibility keywords related to British universities and their reputation. It found no relevant resources for the keyword ‘university reputation’. Secondary data analysis revealed a gap in understanding the relationship between university reputation and economic recovery.
3 Theoretical Underpinning
3.1 UK’s Higher Education Reputation and Crisis Response
The UK’s higher education sector is globally renowned for its top-tier research and top-ranking in field-weighted citation impact. With numerous universities in the top 10, the UK attracts international students and staff, producing globally recognized, world-leading research and highly cited articles. Despite contributing to over 80% of revenue, reputation is often overlooked (Moberly, 2014). Organizations face reputational threats in crises, with the public often holding institutions responsible for certain issues (Kumar et al. 2020). In the HE industry, the pandemic has affected on HE systems as well (Huang et al. 2022), which has led the World Bank, UNESCO, and UNICEF to dub it the worst education crisis on record. Activities connected to the basic missions of HE have also been disturbed and rearranged by the pandemic.
3.2 Economic Recovery
Disaster resilience and recovery are complex concepts involving various disciplines. Recovery indicators include social, economic, environmental, and infrastructure. Economic recovery refers to the process of resuming stable conditions after a crisis (Jordan and Javernick-Will, 2012). Economic recovery pertains to the process by which businesses and local economies resume stable conditions following a crisis. Economic recovery and economic impact are distinct terms as they refer to different aspects of disasters. Economic impact focuses on the consequences of a disaster, usually measured in monetary terms, while economic recovery encompasses the process of overcoming those consequences, often measured in time (Chang and Rose, 2012). To test whether something affects on the economic recovery, first we should know the signs or indicators of recovery. Jordan and Javernick-Will, (2012) in their article titled measuring community resilience and recovery through a content analysis of indicators, classified the indicators of community resilience into infrastructure, social, economic, and institutional categories. They mentioned that across all article types, there is an interest in economic recovery with various indicators to measure economic recovery. These indicators include Employment rates, income levels, Gross national income (GNP), Government Revenue, number of businesses, Housing Values, funds distributed through loans, enterprises aided or founded and training programs (Jordan and Javernick-Will, 2012).
4 Results
Comparing to other organisations, HE relies heavily on reputation which could strengthen its strategic plans for educational, economic, and other development. Also, maintaining the UK’s reputation for excellence in education could help UK to defeat crises, promote economic growth, cultural exchange, and innovation, cementing UK status as a global leader in this sector (Molavi, 2023). Regarding the role of universities in the economy, natural resources and labor-intensive industries which were once the main sources of wealth creation and economic growth have been repleced by universities as knowledge factories (Drucker, 1993; Florida, 1995; Leonard, 1995; Nonaka and Takeuchi, 1995; Romer, 1993). Thus, universities, by generating knowledge and ideas, have become a crucial factor in gaining economic advantages (Edvinsson and Malone, 1997; Stewart, 2010).
The UK government is utilizing the reputation of its universities to promote economic growth in a planned manner. As a result, universities and colleges are vital to the UK’s economy. Therefore, university reputation has an impact on the economic recovery in either the normal or crisis situation. Finally, this article suggests that there is the relationship between university pre-reputation and economic recovery while being mediated by marketisation, education export and better performance in crisis (see Fig. 1).
5 Conclusions
Successful crisis response for countries dealing with crises like the pandemic involves investing in building reputation recognition before the crisis hits. Being proactive and anticipating potential crises and their impact on the organization, particularly on its reputation, is crucial for surviving such situations. This research suggests that the reputation of UK higher education institutions has helped in managing crises. The UK’s higher education reputation has been instrumental in retaining its competitiveness and attracting international students. Additionally, the reputation of the UK higher education system has played a role in mitigating the economic impact of crises, especially the pandemic.
While university reputation can play a role in economic recovery (Molavi, 2023), ‘Regional Disparity’ could be a potential limitation associated with high-reputed universities’ impact. The disparity refers to resource inequalities between the various regions, with some being characterised by sparsity or prosperity (Rice and Venables, 2003; Öberg and Aronsson, 2022). Universities with strong reputations are often concentrated in specific regions or countries. This concentration can exacerbate regional disparities in economic recovery, as areas without renowned universities may struggle to attract investment or develop skilled workforces. Consequently, the university reputation may not uniformly benefit all regions, potentially leaving some areas lagging behind in the recovery process. Also, local businesses may be received insufficient support. Universities with strong reputations often have close ties to industries and businesses, attracting research partnerships, talent recruitment, and entrepreneurial activities. However, this focus on established industries and companies can overshadow support for local startups, small businesses, and emerging sectors. Neglecting the development and nurturing of local businesses can hinder economic diversification and limit job creation opportunities in innovative and entrepreneurial endeavours.
To address such regional disparities, policymakers may need to consider strategies like investing in satellite campuses, establishing research partnerships with neighbouring universities, or promoting online education and remote learning opportunities. These measures can help bridge the gap and provide access to educational resources and expertise, enabling the region to better participate in economic recovery efforts.
Recommendations have been made for the UK government and higher education institutions to prioritize investment in reputation management for the sustainable growth of the country’s higher education sector. The reputation of UK higher education has become essential in the current global crisis as it can attract foreign students, investors, and partners while increasing visibility for the institutions and the country as a whole. Making brand recognition is a crucial factor for universities to attract mega projects to boost economic growth or recovery.
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Molavi, H. (2024). The Role of UK Universities’ Reputation on Economic Recovery in the Crisis Time. In: Al Marri, K., Mir, F.A., David, S.A., Al-Emran, M. (eds) BUiD Doctoral Research Conference 2023. Lecture Notes in Civil Engineering, vol 473. Springer, Cham. https://doi.org/10.1007/978-3-031-56121-4_32
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