The Expansion of For-profit Colleges in the Twenty-first Century: Innovation, Imitation, or Institutional Entrepreneurship?

• In Event: 413 - Section on Organizations, Occupations and Work Refereed Roundtable Session. Table 01. Culture and Organizations
  In Refereed Roundtable 100min: Table 04. Higher Education

Abstract

The dramatic expansion of the for-profit sector in U.S higher education system during the first decade of the 21st century poses a puzzling case for theories of organizational success and survival. In the highly established field of higher education, these controversial and low-prestige institutions were able to expand at a higher rate than any other sector in higher education. Building on economic and sociological models of organizational success, this study takes a closer look at the organizational strategies that supported the success of for-profit colleges. Detailed longitudinal data on all accredited for-profit colleges and universities in US higher education between 2000 and 2013 obtained from the Department of Education is used to assess the explanatory power of several prominent theoretical models of organizational success. Results from multilevel and event history models suggest that although the innovation at for-profit colleges was important for their success, legitimacy and adoptions were crucial as well. Net of locality, price, and other organizational characteristics, for-profit colleges who appeared more like traditional universities were more successful in increasing the size of their incoming class over time.

Author

• Dafna Gelbgiser, Cornell University