University-Government relationship in Ethiopian public universities in the Framework of information asymmetry and goal conflicts

Abstract

This study examined the university-government relationship with a focus on Ethiopian public universities in the framework of information asymmetry and goal conflicts. Agency theory used to examine organizational thinking and behavior of the agents and the relationship between agent and principal to highlight goal conflicts and information asymmetries. The study employs a parallel convergent mixed research design. A self-developed survey questionnaire was administered to 1474 participants after purposively and randomly selecting participants from the nine public universities. Data on legal issues were collected from purposefully selected legislative documents. Both descriptive (percentage, frequency, mean, standard deviation) and inferential statistics (Principal Component Analysis, Regression, Factor loading) were employed. Results show that public universities in Ethiopia experience strong government interference and control in internal affairs that has resulted in information asymmetry problems and goal conflicts. The Ethiopian government fails to materialize steering from distance and self-governance of public universities. It is concluded that the control system of the government did not conceive the loosely coupled, multidimensional features of public universities and failed to institutionalize a sound government-universality relationship. Outcome-based funding and performance indicators be adopted, a balanced autonomy and accountability with clear boundaries be granted, effective governance structures be institutionalized, and a strong supervisory mechanism as major policy implications be established to create an effective university-government relationship.