Effects of Management Competence, Firm-Level Institutions and HRM Bundles on the Performance of Private Universities in Ghana

Abstract

The market for tertiary educational institutions, most especially for private universities, is highly competitive. The competitive nature of the market requires that Private Universities (PUs) step up their performance so as to remain competitive despite the major structural and market differences between them and public universities in the provision of tertiary education.  The need for private universities to remain competitive in this turbulent market, calls for some careful examination of the factors that would enable private universities to enhance their performance. In this respect, this study sought to examine the effects of management competence, firm-level institutions, and human resource management (HRM) bundles on the performance of private universities in Ghana. Underpinned by the RBV and AMO theories, the study tested four hypotheses that sought to explain the relationships between the key variables of the study. The study was implemented using a quantitative research design. Out of the sixteen private universities sampled, thirteen private universities responded. The main research instrument was a structured questionnaire. Out of 230 questionnaires administered, 127 completed questionnaires were received and used for analysis. Collected data was analyzed using descriptive and inferential statistics (regression analysis) with the aid of SPSS software version 20 and AMOS version 23.  Research findings from the tests of hypotheses established that management competence positively and significantly affected performance of private universities in Ghana. Though the study found that the composite variables of firm-level institutions and HRM bundles did not moderate the relationship between management competence and PU performance, the skills bundles (which is a component of the HRM bundles) significantly moderated the management competence – PU performance relationship in such a way that at high levels of skills bundle, management competence influences PU performance more than at low levels of skills bundle. Based on the findings of the study, it is recommended that PUs in Ghana institute competence acquisition and utilization policies, maintain appropriate firm-level institutions and HRM bundles and match these to their competence development strategies.