Constructing Strategy of Online Learning in Higher Education: Transaction Cost Economy

TL;DR

This paper applies Transaction Cost Economics to develop strategies for higher education institutions to optimize online learning systems, enhance stakeholder relationships, and adapt to a rapidly changing digital environment.

Contribution

It introduces a model based on Transaction Cost Economics to guide universities in designing effective online learning strategies and improving their LMS adoption.

Findings

Effective LMS strategies can reduce transaction costs for universities.

Proper online learning strategies enhance stakeholder engagement and satisfaction.

Universities can sustain and grow by leveraging online learning in competitive markets.

Abstract

The online learning tools and management also known as Learning Management System (LMS) have been adopted by higher education as it allows convenient and flexibility in learning process between students and instructors or tutors with minimal cost. The adoption of online learning tools in university has allowed users (students and instructors) to interact, share and discuss anytime-anywhere conveniently. Many students nowadays rely on online resources based using their mobile devices, substituting traditional learning interactions. Universities need strategy to sustain in providing intensive interactions and spreading word out mouth of good services through online learning tools by focusing on niche markets and creating close relationship with their stakeholders. The study presented in this paper analyses how universities design best practices in adopting LMS and evaluate its current state for future improvement. In fact, with proper strategies of LMS, universities have opportunities to sustain their business by offering interesting packages and to improve their services through intensive interactions with their users. In this study, we deploy Transaction Cost Economics (TCE) to understand the change business environment and to construct a model for higher institution to regulate their scenario on online learning strategies in fast changing and threatening business environment.