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Of Bumping and Bending: Foreign Universities’ FDI Strategies in Malaysia

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  • Marc Philipp Schulze

Abstract

Universities from varying institutional and geographical contexts have increasingly invested in offshore subsidiaries in the Malaysian private higher education sector. Literature on transnational education policy and management as well as economic‐geographic accounts of firms’ transnationalisation or public service provision have not investigated foreign providers’ direct investment and market access strategies in the higher education sector. This paper addresses these gaps, showing how and why foreign actors’ investment and market involvement in Malaysia have changed. Empirical data is drawn from qualitative interviews and policy documents. The research reveals that foreign universities have strategically modified their business partnerships and bi‐national accreditation to bypass and bend state regulation of market access as well as to restructure internal organisation and geographical configuration. The paper proposes conceptualising foreign higher education providers as transnationalising, reflexive networks within networks that respond to dynamic market access regulation by adopting firm‐like investment strategies.

Suggested Citation

  • Marc Philipp Schulze, 2021. "Of Bumping and Bending: Foreign Universities’ FDI Strategies in Malaysia," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 112(2), pages 179-194, April.
    • Handle: RePEc:bla:tvecsg:v:112:y:2021:i:2:p:179-194
    DOI: 10.1111/tesg.12472
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    References listed on IDEAS

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    3. Siew Yean Tham, 2014. "Trade Liberalization And Domestic Regulations: Implications For Malaysia As A Regional Education Hub," World Scientific Book Chapters, in: Christopher Findlay & Hildegunn Kyvik Nordas & Gloria Pasadilla (ed.), TRADE POLICY IN ASIA Higher Education and Media Services, chapter 6, pages 213-258, World Scientific Publishing Co. Pte. Ltd..
    4. Jinn‐Yuh Hsu, 2006. "The Dynamic Firm–Territory Nexus of Taiwanese Informatics Industry Investments in China," Growth and Change, Wiley Blackwell, vol. 37(2), pages 230-254, June.
    5. Olds, Kris, 2007. "Global Assemblage: Singapore, Foreign Universities, and the Construction of a "Global Education Hub"," World Development, Elsevier, vol. 35(6), pages 959-975, June.
    6. Peter Dicken & Anders Malmberg, 2001. "Firms in Territories: A Relational Perspective," Economic Geography, Taylor & Francis Journals, vol. 77(4), pages 345-363, October.
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    Cited by:

    1. Schulze, Marc Philipp & Kleibert, Jana Maria, 2021. "Transnational education for regional economic development? Understanding Malaysia's and Singapore's strategic coupling in global higher education," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 25(4), pages 363-382.
    2. Kleibert, Jana M. & Rottleb, Tim & Schulze, Marc & Bobée, Alice, 2021. "Strategy first: Ten questions to answer before starting an international campus," IRS Dialog 2/2021, Leibniz Institute for Research on Society and Space (IRS).

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