Budgeting as a Key Component of University Management Success





budget, budgeting, sources of funding, university sector, higher education


Introduction. In modern conditions of economic processes, the essence of university management does not meet the requirements of a democratic society. This is especially true of financial management methods. The need to implement budgeting in the university sector is exacerbated by the significant interest of managers and stakeholders in the autonomy of educational institutions. Purpose and methods. The purpose of the article is to substantiate the theoretical and methodological provisions for defining the concept of “budget” in the context of universities with further disclosure of its role and importance in ensuring effective management. The methodological basis was the fundamental provisions of modern economic concepts, a systematic approach, general and special methods. Results. The way of formation of the category “budget” for the university sector is investigated. The peculiarities of the transformation of scientific thought regarding the introduction of the budgeting process at the university are determined. The priority sources of filling the budgets of the universities of the leading countries for further implementation in the domestic system are identified. Conclusions. Formed own vision of the concept of “budget”, “budgeting” for the university sector; the universal model of realization of the process of budgeting in university considering features of educational activity is presented; the priority sources of budget financing in modern universities are defined because of their historical, geographical, and national features of formation and development. Dominant among them are state target expenditures, expenditures from local budgets of territorial communities, financial revenues from autonomous activities, and targeted funding of scientific activities by the state and business agents.

Author Biography

Oksana Feicher, Malardalen University, Vasteras, Sweden



Amaral, A., Neave, G., Musselin, C., & Maasen, P. (Eds.). (2009). Europeanisation and the Governance of Higher Education and Research. Dordrecht: Springer Netherlands, doi: https://doi.org/10.1007/978-1-4020-9505-4.

Amaral, A., & Meek, V., & Larsen, M. (Eds.). (2003). The Higher Education Managerial Revolution (Vol. 3). Dordrecht; Boston: Kluwer Academic Publishers.

Andriopoulos, C., & Lewis, М. (2009). Exploitation-Exploration Tensions and Organizational Ambidexterity: Managing Paradoxes of Innovation. Organization Science, 20(4), 696-717, doi: https://doi.org/10.1287/orsc.1080.0406.

Auranen, O., & Nieminen, M. (2010). University Research Funding and Publication Performance  an International Comparison. Research Policy, 39(6), 822-834.

Bezverkhyi, K. (2013). Nepriami Vytraty v Systemi Upravlinnia Promyslovykh Pidpryiemstv: Oblikovo-Kontrolnyi Aspekt [Indirect Costs in the Management System of Industrial Enterprises: Accounting and Control Aspect]. Kyiv: Tsentr Uchbovoi Literatury (in Ukr.).

Bogumil, J., Burgi, M., Heinze, R., Gerber, S., Gräf, I.-D., Jochheim, L., Schickentanz, M., & Wannöffel, M. (2013). Modernisierung der Universitäten. Umsetzungsstand und Wirkungen neuer Steuerungsinstrumente. Berlin: Sigma.

Bogumil, J., & Heinze, R. (Eds.). (2009). Neue Steuerung von Hochschulen: Eine Zwischenbilanz. Berlin: Sigma.

Bonaccorsi, A., Secondi, L., Setteducati, E., & Ancaiani, A. (2014). Participation and Commitment in Third-Party Research Funding: Evidence from Italian Universities. The Journal of Technology Transfer, 39(2), 169-198, doi: https://doi.org/10.1007/s10961-012-9268-5.

Brock, A. (1996). Budgeting Models and University Efficiency: a Ghanaian Case Study. Higher Education, 32(2), 113-127.

Brunsson, N., & Sahlin-Andersson, K. (2000). Constructing Organizations: The Example of Public Sector Reform. Organization Studies, 21(4), 721-746, doi: https://doi.org/10.1177/0170840600214003.

Bublitz, B., & Martin, S. (2007). The Incorporation of Managerial Accounting Concepts into Governmental Organizations: The Case of Public Universities. The Journal of Government Financial Management, 56(4), 56-62.

Capano, G. (2008). Looking for Serendipity: The Problematical Reform of Government Within Italy’s Universities. Higher Education, 55, 481-504, doi: https://doi.org/10.1007/S10734-007-9069-1.

Chung, T., Harrison, G., & Reeve, R. (2009). Interdependencies in Organization Design: a Test in Universities. Journal of Management Accounting Re-search, 21(1), 55-73, doi: https://doi.org/10.2308/jmar.2009.21.1.55.

Clark, B. (2001). The Entrepreneurial University. New Foundations for Colle-giality, Autonomy, and Achievement. High Education Management, 13(2), 9-24.

Covaleski, M., & Dirsmith, M. (1988). An Institutional Perspective on the Rise, Social Transformation, and Fall of a University Budget Category. Administrative Science Quarterly, 33(4), 562-587, doi: https://doi.org/10.2307/2392644.

Covaleski, M., & Dirsmith, M. (1986). The Budgetary Process of Power and Politics. Accounting, Organizations and Society, 11(3), 193-214, doi: https://doi.org/10.1016/0361-3682(86)90021-8.

Cyert, R., & March, J. (1963). A Behavioral Theory of the Firm, Prentice Hall. New Jersey: Englewood Cliffs.

Dobbins, M., & Knill, Chr. (2017). Higher Education Governance in France, Germany, and Italy: Change and Variation in the Impact of Transnational Soft Governance. Policy and Society, 36(1), 67-88, doi: https://doi.org/10.1080/14494035.2017.1278868.

Enders, J., de Boer, H., & Weyer, E. (2013). Regulatory Autonomy and Performance: the Reform of Higher Education Re-Visited. Higher Education, 65, 5-23, doi: https://doi.org/10.1007/s10734-012-9578-4.

Esposti, M., & Geraci, M. (2010). Thirty Years of Higher-Education Policy in Italy: Vico’s Ricorsi and Beyond? Bulletin of Italian Politics, 2, 111-122, doi: https://doi.org/10.1332/policypress/9781529208627.003.0003.

Estermann, T., Nokkala, T., & Steinel, M. (2011). University Autonomy in Europe: The Scorecard. Brussels: European University Association.

Etzkowitz, H. (2003). Research Groups as “Quasi-Firms”: The Invention of the Entrepreneurial University. Research Policy, 32, 109-121, doi: https://doi.org/10.1016/S0048-7333(02)00009-4.

European Commission (2006). Delivering on the Modernisation Agenda for Universities: Education, Research, and Innovation, Retrieved from http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2006:0208:FIN:en:PDF.

Ezzamel, M., Robson, K., & Stapleton, P. (2012). The Logics of Budgeting: Teorization and Practice Variation in the Educational Field. Accounting, Organizations and Society, 37(5), 281-303, doi: https://doi.org/10.1016/j.aos.2012.03.005.

Feicher, O. (2018). Zarubizhnyi Dosvid Korolivstva Shvetsii u Pobudovi Systemy Upravlinnia Vyshchymy Navchalnymy Zakladamy Mystetskoi Osvity [Foreign Experience of the Kingdom of Sweden in Building a Management System for Higher Education in Art Direction]. Visnyk Kyivskoho Natsionalnoho Universytetu Kultury i Mystetstv. Seriia: Menedzhment Sotsiokulturnoi Diialnosti [Bulletin of the Kyiv National University of Culture and Arts. Series: Management of Socio-Cultural Activities], 1(1), 64-77, doi: https://doi.org/110.31866/2616-7573.1.2018.143389 (in Ukr.).

Feicher, O. (2021). Orhanizatsiino-Ekonomichnyi Mekhanizm Upravlinnia Zakladamy Vyshchoi Osvity Mystetskoho Spriamuvannia [The Organizational and Economic Mechanism of Management of Higher Educational Institutions in Art Direction] Kandydatska Dysertatsiia [Candidate's Dissertation]. Kyiv: MAUP (in Ukr.).

Geuna, A. (2001). The Changing Rationale for European University Research Funding: are There Negative Unintended Consequences? Econ Issues, 35(3), 607-632, doi: https://doi.org/10.1080/00213624.2001.11506393.

Gornitzka, Å., & Larsen, І. (2004). Towards Professionalisation? Restructuring of Administrative Work Force in Universities. Higher Education, 47(4), 455-471, doi: https://doi.org/10.1023/B:HIGH.0000020870.06667.f1.

Grygoriv, O. (2012). Rol Biudzhetuvannia i Bukhhalterskoho (Upravlinskoho) Obliku u Systemi Upravlinnia Vyshchymy Navchalnymy Zakladamy [The Role of Budgeting and Accounting (Management) Accounting in the Management System of Higher Education Institutions]. Problemy Kultura Narodiv Prychornomoria [Culture of Black Sea People], 234, 27-29 (in Ukr.).

Haeuser, P. (2000). Budget and Planning. New Directions for Higher Education, 111, 75-83, doi: https://doi.org/10.1002/he.11108.

Jongbloed, B., & van der Knoop, H. (1999). Budgeting at the Institutional Level: Responding to Internal Pressures and External Opportunities. From the Eyeof the Storm. Higher Education’s Changing Institutions (B. Jongbloed, P. Maassen, & G. Neave, Eds.). Dordrecht: Springer, 141-164.

Kutsyk, P. (2010). Biudzhetuvannia yak Osnovna Skladova Operatyvnoho Planuvannia ta Finansovoho Kontrolinhu Vyshchykh Navchalnykh Zakladiv [Budgeting as the Main Component of Operational Planning and Financial Controlling of Higher Educational Institutions]. Ekonomichni Nauky. Seriia: Oblik i Finansy [Economic Sciences. Accounting and Finance Series], 7(25), 192-201 (in Ukr.).

Laudel, G. (2006a). The Art of Getting Funded: How Scientists Adapt to their Funding Conditions. Science and Public Policy, 33(7), 489-504, doi: https://doi.org/10.3152/147154306781778777.

Laudel, G. (2006b). The ‘Quality Myth’: Promoting and Hindering Conditions for Acquiring Research Funds. Higher Education, 52(3), 375-403, doi: https://doi.org/10.1007/S10734-004-6414-5.

Lepori, B., Dinges, M., Reale, E., Slipersaeter, S., Theves, J., & van den Besselaar, P. (2007). Comparing the Evolution of National Research Policies: What Patterns of Change? Science and Public Policy, 34(6), 372-388, doi: https://doi.org/10.3152/030234207X234578.

Lepori, B., Masso, J., Jabłecka, J., Sima, K., & Ukrainski, K. (2009). Comparing the Organization of Public Research Funding in Central and Eastern European Countries. Science and Public Policy, 36(9), 667-681, doi: https://doi.org/10.3152/030234209X479494.

Lepori, B., Usher, J., & Montauti, M. (2013). Budgetary Allocation and Organizational Characteristics of Higher Education Institutions: a Review of Existing Studies and a Framework for Future Research. Higher Education, 65(1), 59-78, doi: https://doi.org/10.1007/S10734-012-9581-9.

Liefner, I. (2003). Funding, Resource Allocation, and Performance in Higher Education Systems. Higher Education, 46(4), 469-489, doi: https://doi.org/10.1023/A:1027381906977.

Link, K., & Müller, B. (2019). Multiple Party Funding: Tensions and Related Consequences for Academic Research in Europe. Managerial Science, 14, 417-445, doi: https://doi.org/10.1007/s11846-019-00362-3.

Macintosh, N., & Daft, R. (1987). Management Control Systems and Departmental Interdependencies: an Empirical Study. Accounting, Organizations and Society, 12(1), 49-61, doi: https://doi.org/10.1016/0361-3682(87)90015-8.

McKenzie, Z. (2009). Higher Education Reform in France: Some Lessons for the Australian Experience (Working Paper). Paris: Fondation pour l’Innovation Politique.

Mensah, Y., Schoderbek, M., & Werner, R. (2009). A Methodology for Evaluating the Cost-Effectiveness of Alternative Management Tools in Public-Sector Institutions: an Application to Public Education. Journal of Management Accounting Research, 21(1), 203-239, doi: https://doi.org/10.1007/BF00138392.

Moscati, R. (2001). Italian University Professors in Transition. Higher Education, 41, 103-129, doi: https://doi.org/10.1023/A:1026766829752.

Olsen, J. (2007). The Institutional Dynamics of the European University. University Dynamics and European integration (P. Maassen, J. Olsen, Eds.). (Vol. 3). Dordrecht: Springer, 25-54, doi: https://doi.org/10.1007/978-1-4020-5971-1_2.

Paradeise, C., Reale, E., Bleiklie, I., & Ferlie, E. (2009). University Governance. Western European Comparative Perspectives. Dordrecht: Springer.

Parker, L. (2013). Contemporary University Strategising: The Financial Impe-rative. Financial Accountability and Management, 29(1), 1-25, doi: https://doi.org/10.1111/faam.12000.

Pondy, L. (1970). Toward a Theory of Internal Resource Allocation. Power in Organizations. Tenn: Vanderbilt University Press, 270-311.

Safonova, V. (2016). Kontseptsiia Efektyvnoho Derzhavnoho Finansuvannia Vyshchoi Osvity [The Concept of Effective Public Funding of Higher Education]. Naukovi Pratsi MAUP [Scientific Works of IAPM], 48(1), 154-171 (in Ukr.).

Salancik, G., & Pfeffer, J. (1974). The Bases and Use of Power in Organi-sational Decision Making: The Case of a University. Administrative Science Quarterly, 19, 453-473, doi: https://doi.org/10.2307/2391803.

Seeber, M., Bleiklie, I., Enders, J., De Boer, H., Montauti, M., Lepori B., Sousa, S. …, Weyer, E. (2015). European Universities as Complete Organizations? Understanding Identity, Hierarchy and Rationality in Public Organizations. Public Management Review, 17(10), 1444-1474, doi: https://doi.org/10.1080/14719037.2014.943268.

Statenc Offentliga Utredningar. (2019). En Långsiktig, Samordnad och Dialogbaserad Styrning av Högskolan. Stockholm: Elanders Sverige AB, Retrieved from https://www.regeringen.se/4a71f0/contentassets/b81affc4c0754122b1f7bbb24f23832c/en-langsiktig-samordnad-och-dialogbaserad-styrning-av-hogskolan-sou-20196.

Vynohradnia, V. (2011). Napriamy Udoskonalennia Protsesu Biudzhetuvannia u Vyshchykh Navchalnykh Zakladakh [Directions for Improving the Budgeting Process in Higher Educational Institutions]. Ekonomichnyi Visnyk Universytetu [Economic Bulletin of the University], 17(2), 30-34 (in Ukr.).

Wildavsky, A., & Caiden, N. (2004). The New Politics of the Budgetary Process. New York: Pearson Longman.

Wilholt, T. (2010). Scientific Freedom: its Grounds and Their Limitations. Studies in History and Philosophy of Science, 41(2), 174-181, doi: https://doi.org/10.1016/j.shpsa.2010.03.003.




How to Cite

Feicher, O. . (2022). Budgeting as a Key Component of University Management Success. Socio-Cultural Management Journal, 5(1), 105–125. https://doi.org/10.31866/2709-846x.1.2022.257685