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Prerequisites of hybridization of university financing as a tool for ensuring sustainability and strategic development

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Category: Content №5 2024

Last Updated on 29 October 2024

Published on 30 November -0001

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Authors:

L.Yurchyshena, orcid.org/0000-0002-5904-0758, Vasyl’ Stus Donetsk National University, Vinnytsia, Ukraine

O.Dluhopolskyi*, orcid.org/0000-0002-2040-8762, West Ukrainian National University, Ternopil, Ukraine; WSEI University, Lublin, Republic of Poland

I.Vechirko, orcid.org/0009-0004-6700-4425, Vinnytsia Mykhailo Kotsiubynskyi Pedagogical University, Vinnytsia, Ukraine

S.Kozlovskyi, orcid.org/0000-0003-0707-4996, Vasyl’ Stus Donetsk National University, Vinnytsia, Ukraine

R.Lavrov, orcid.org/0000-0002-9655-4467, T. H. Shevchenko National University “Chernihiv Colehium”, Chernihiv, Ukraine

* Corresponding author e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

повний текст / full article

Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu. 2024, (5): 184 - 191

https://doi.org/10.33271/nvngu/2024-5/184

Abstract:

Purpose. To assess the state of budget financing of Ukrainian HEIs, determine their funding structure, and identify prerequisites for developing hybrid financing as a tool for stability and strategic development.

Methodology. Dynamic and structural analysis, the Hirschman-Herfindahl index (HHI(DI) and such methods as quantitative, arithmetic mean, limit values, graphic, visualization, and system methods were used in the research process. The practical testing of research hypotheses was carried out on the basis of a comprehensive approach to the financing of HEIs of Ukraine and a panel sample of 35 universities, which takes into account rating indicators, industry and regional aspects.

Findings. Transformation processes at various levels are linked to trends such as reduced budget funding, structural changes, staff and student migration, decreased demand for additional services, and military factors, creating prerequisites for hybrid university funding. The article identifies conditions for hybrid financing, highlights negative trends in HEIs budget financing –including systemic underperformance and inflation impacts – and analyzes income diversification in Ukrainian universities using the HHI(DI). Limiting and average values were determined using the quantitative method, which made it possible to classify universities into sustainable (HHI(DI)  0.55) and risky (HHI(DI) > 0.55) ones; tendencies towards a slight diversification of universities’ incomes are revealed; a conceptual model is proposed of hybrid financing of universities to expand their financial autonomy, based on cooperation between university management, stakeholders, and staff core, with the aim of creating value propositions which satisfy the needs of stakeholders and generate cash flows; a new approach to the division of hybrid financing tools into three groups is proposed: passive or image-based, active-intellectual, and passive-innovative ones. This approach is innovative in the development of financial strategies for universities.

Originality. New tools for making management decisions aimed at ensuring financial stability and developing financial strategies for universities are proposed. In particular, they include an original approach to the classification of universities into sustainable and risky ones based on the value of the HHI; the conceptual model of hybrid financing of universities, which promotes the expansion of their financial autonomy; the innovative approach to the division of hybrid financing instruments into three categories: passive or image-based, active-intellectual, passive-innovative.

Practical value. The study’s results can be used to make management decisions on expanding financial autonomy of universities. The introduction of the conceptual model of hybrid financing will contribute to the diversification of income, increase in financing, as well as ensuring financial stability and strategic development of universities.

Keywords: finance, HEIs, financing tools, sustainability, university, hybrid financing, strategic management

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