Better autonomy for better performance: the role of strategic planning capability mediating the relationship between financial autonomy and organisational performance in Indian private universities

Abstract

Despite the essential theoretical role of financial autonomy, relatively little research has been discovered exploring the effect of financial autonomy on strategic planning capability and organisational performance, especially in Indian private universities. Thus, the current study contributes to the literature on higher education by investigating the impact of strategic planning capability on the organisational performance of Indian private universities caused by financial autonomy. Data were collected from 141 leaders of private universities in India using a survey. By using Partial Least Square Structural Equation Modelling (PLS-SEM), the findings of this study reveal that financial autonomy positively influences strategic planning capability and organisational performance. Moreover, the results show that strategic planning capability affects organisational performance positively. Further, strategic planning capability partially mediates the link between financial autonomy and organisational performance. The implications and future directions of this study's findings are also discussed.