Business Model Innovation in Technical Higher Education Institutions in Tanzania

Abstract

Technical Higher Education Institutions (THEIs) are faced with frightening challenges of long-established business models. The cost of providing higher education continues to increase against the decreasing of funds’ flow. The same Institutions are challenged to cope with current technology and produce graduates who are up-to-dated and competent in the labour market. One of the alternatives proposed to address the given challenges is transforming higher education through Business Model Innovation (BMI). However, little is known about the performance of BMI in the THEIs from in Tanzania. Therefore, this study assessed performance of BMI in THEIs by specifically determining the extent to which THEIs provide education through distance and online platforms; and determining the performance of THEIs in collaborating with industry, professionals and other stakeholders in transforming their education. Quantitative approach with explanatory survey design was used in this study. Questionnaire was applied to collect data from 500 randomly stratified sample of students who graduated THEIs as from 2015-2020. The Descriptive Statistics was used to analyze the collected data. The findings indicate that, THEIs provided education through distance and online platforms to a small extent from 2015-2020. Furthermore, the THEIs performed satisfactorily in collaborating with industry, professionals and other stakeholders in transforming their education. Generally, the performance of the BMI in the THEIs is poor as from 2015-2020; while the BMI is significantly and positively related to transforming higher education. This study advocates for the improvement of BMI in THEIs for them to solve the current challenges in transforming their respective education.