University-Government Relationship in Ethiopian Public Universities: In the Framework of Information Asymmetry and Goal Conflicts

Abstract

This study examines the university-government relationship, with a focus on Ethiopian public universities in the framework of information asymmetry and goal conflicts. Agency theory was 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 and inferential statistics were employed. Results showed that public universities in Ethiopia experience strong government interference in internal affairs. It has resulted information asymmetry problems and goal conflicts. The Ethiopian government fails to materialize steering from distance and self-governance of public universities. The study 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. The author recommended that 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.