The endogenous role of location evaluation for academic performance in university

Abstract

The purpose of this paper is to contribute to the limited research on universities’ decision to innovate, using the network and knowledge-based perspectives as our theoretical underpinning. The first conclusion is that universities are more likely to locate their scientific productivity on a standalone campus than in a multi-campus system when the knowledge effect is more favorable. To make a contribution to industry and collaboration, universities are more likely to locate their scientific productivity in a multi-campus system. The second conclusion is that after controlling for endogeneity bias, the mean of academic performance for scientific productivity on a standalone campus is higher than it is on a multi-campus system. The third conclusion is that locating innovation activities in either a standalone or multi-campus system under theoretically appropriate conditions increases academic performance. These findings pose interesting challenges for knowledge management in innovation through a university’s location decision.