Market orientation as a policy paradigm in Australian university education

Universities make an essential contribution to creating a more diverse, sustainable and vibrant economy with opportunities for better jobs and more fulfilled lives and, through research and innovation, the creation of new products and industries. The increasingly competitive environment being experienced by both the commercial and non-profit sector has led to the adoption of market orientation by various organisations, including higher education institutions. This chapter focuses on challenges facing universities across Australia in moving to a more market orientation mode. Over the past two decades, many governments have become ever more directive in their funding of the university education sector with more pressure for relevance in research and teaching tied into contribution to economic growth, social mobility, technical innovation and employability. This pressure operates against a backcloth of increasing global competition as the university education sector expands rapidly in many countries. In general, the chapter analyses how these challenges are shaping university education in Australia. This development is driven partly by the government policies and incentives and partly and increasingly by the new market opportunities. The chapter further discusses how the Australian university education system has been impacted by the rise of neoliberal ideology and practices and the implications of market orientation for equity initiatives. The chapter does not aim at providing an exhaustive literature review, but rather at presenting the main elements that define market orientation in university education in Australia.