Balancing financial autonomy and control in agencification

Purpose The purpose of this paper is to explore the practices of financial autonomy and control the emerging issue of agencification in the higher education sector. Design/methodology/approach The practices are investigated using case studies from seven semi-autonomous state universities in Indonesia. The data were collected through semi-structured interviews with 17 respondents including university officials, policymakers, and experts. The interview results were analysed using an inductive-deductive approach. Findings This research highlights an unstable balance between financial autonomy and control practices in the universities. Autonomy supports agencification mainly by simplifying financial procedures and control is seen by university managers to be overemphasised compared to in the other state universities. Despite successes in introducing a business-like atmosphere within bureaucratic universities, questions about balancing financial autonomy and control remain. Research limitations/implications The small number of cases implies limited generalisability. The two characteristics used, size and parent ministries do not represent all university variabilities. Practical implications Agencification has become a key reform practice for state universities. Rather than using a “one size fits all” approach, the government needs a repertoire of models for these institutions. Originality/value This study provides empirical evidence of agencification in the higher education sector with an emphasis on the financial dimension of autonomy and control in a developing country setting.