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We share findings from a needs assessment investigating institutional barriers and enablers associated with implementing digital STEM microcredentials in higher education. Guided by Diffusion of Innovation Theory (Rogers, 2003), the study explores how institutions at four stages navigate resource constraints, faculty engagement, infrastructure, and employer alignment. Using survey data from 18 U.S. institutions, we identify key tensions in policy, practice, and strategic planning. Findings show that early-stage institutions face governance and coordination issues, while advanced-stage institutions focus on scalability and sustainability. Enabling factors include faculty development, interoperable credentialing platforms, and industry partnerships. These results offer empirical insights into factors influencing diffusion while providing practical guidance for implementation and proposing strategies for leaders to create institutional conditions that support innovation.