Is the well‐known phrase ‘small is beautiful’ true of small transnational education institutions?

The purpose of this research is to consider the potential attractiveness of operating a small international branch campus (IBC). Drawing upon resource‐based and legitimacy theories, we examine the strengths, weaknesses, opportunities and threats associated with the business model that is based on having a small institution size. The data for the study were obtained from expert informants who held a senior management position at 1 of 12 IBCs globally. The most commonly mentioned strengths of small IBCs cited by our participants related to the advantages and benefits received by students, such as small class sizes, individualised learning, better student‐teacher relationships and a stronger sense of community. The weaknesses of small IBCs mentioned most by our participants related to financial and resource issues. We conclude that while there may be opportunities for higher education institutions to develop small campuses overseas that are successful, considerable risks exist. Many of the findings are also applicable to institutions operating in domestic settings.