Entrepreneurial Higher Education and Economic Progress
Organizational Capabilities of the Entrepreneurial University
Lucian Gramescu1, Nicolae Bibu2
Abstract: Developing entrepreneurial capabilities has become a key competitiveness strategy in business
across the world. Overall, organizational capabilities can provide p erformance improvements by taking an
integrated approach to people, in frastructure and processes as means of codifying organization al learning. The
paper proposes “organizational capability” as a valuable tool for universities who seek to develop their
competitiveness entrepreneurially, especially across the EU, where higher education is no longer a guarantee
for employment and alternatives are so rely needed. For this purpose, we explore conceptualizations of
organizational capabilities, propose an integrative model and apply it to learn more about the development of
capability from practice at Aalto University in Finland.
Keywords: organizational capability; organizational learning; entrepreneurial university
JEL Classification: L26; L30
The global market for education has become very competitive, with universities increasingly reaching
outside of domestic markets to attract students. While the best financed universities have actually
shifted their income generation from fees to investment portfolio management (Harvard Business
School being a key example), no higher education institution can forego the need of attracting the best
students available in its class in order to keep the performance standards that endorse it.
Changes brought about by globalization, massification of higher education, technology, demographics
(Allison & Javorka, 2014; Wilson, 2008), as well as resource stringency due to increasing competition
and public budget cuts and performance-based allocation (Allison & Javorka, 2014) have forced HE
institutions to reassess their business models. With lower, more competitive access to resources and
increased uncertainty, taking the entrepreneurial path has been a solution for an increasing number of
institutions (Gibb, 2012; Mets, 2010).
These trends are particularly important for Europe. Criticized for lacking entrepreneurial dynamism,
the EU is lagging behind the US in innovative and entrepreneurial outputs. Entrepreneurship education
1 PhD Candidate, West University of Timisoara, Faculty of Economics and Business Administration, Romania, Address: 4
Vasile Pârvan Blvd., Timisoara, Tel.: +40256 592 111, Corresponding author: firstname.lastname@example.org.
2 Professor PhD, West University of Timisoara, Faculty of Economics and Business Administration, Romania, Address: 4
Vasile Pârvan Blvd., Timisoara, Tel.: +40256 592 111, E-mail: email@example.com.