Incentives for Polish higher education institutions to improve real estate efficiency

Abstract

Purpose

The purpose of this paper is to analyse the appropriateness of incentives used by governments for Polish public higher education institutions (HEIs) to be more efficient in real estate and how these incentives can be strengthened.

Design/methodology/approach

A closed-ended questionnaire was sent to all public HEIs in Poland. Of the 132 questionnaires sent, 57 were successfully completed and returned, representing a response rate of 43 per cent.

Findings

Analysis of empirical data demonstrates that when considerable public funds, both national and European, were distributed to extend and upgrade academic infrastructure, Polish HEIs have had no obligation to show how they manage the assets entrusted to them, and the government has not created adequate incentives to encourage efficiency in the use of HEIs real estate. This may have resulted in a significant, yet not always justified, increase in the space at their disposal. In view of a demographic decline, the low level of internalisation of Polish HEIs, the decreasing level of funding from the public purse and the growing operation and maintenance costs of the buildings, an oversupply of space may cause financial distress to some establishments. This may affect the future of the whole system of higher education.

Practical implications

This paper can be a resource for HEI chancellors, financial directors and campus managers, as well as HEI funding and supervisory institutions.

Originality/value

This paper highlights the need to strengthen incentives for public HEIs in Poland to foster their greater efficiency in resource allocation and utilization. Greater transparency in HEI operations and the improvement of the POL-on system may contribute to more efficient use of university assets.

Citation

Rymarzak, M. (2018), "Incentives for Polish higher education institutions to improve real estate efficiency", Journal of Corporate Real Estate, Vol. 20 No. 3, pp. 214-227. https://doi.org/10.1108/JCRE-10-2017-0040