Toward Sustainable Institutional Effectiveness: A Management Accounting-Based Performance Framework for Public Higher Education Institutions in the Western Balkans

This study contributes to the development of performance measurement frameworks for HEIs in resource-constrained settings. It offers valuable insights for policymakers and institutional leaders in the Balkans, emphasizing the need for a holistic approach that integrates both academic and administrative factors to improve institutional effectiveness and support strategic decision-making in public higher education. This study develops and validates a multidimensional performance framework for public higher education institutions (HEIs) in developing Balkan countries, integrating both academic and administrative dimensions of institutional performance. Using a cross-sectional design, data were collected from 162 respondents across public HEIs in Serbia, Bosnia and Herzegovina, Montenegro, North Macedonia, and Albania. A two-stage analytical approach was employed: an exploratory factor analysis (EFA) to identify the underlying structure of performance dimensions, followed by a confirmatory factor analysis (CFA) to validate the measurement model. The results confirm a robust five-factor structure, comprising three academic dimensions—teaching and learning, research, and knowledge transfer—and two administrative dimensions—resources and internationalization. Structural equation modeling (SEM) was used to assess the effects of academic and administrative performance on overall higher education performance (OHEP). Findings indicate that administrative performance exerts a stronger influence on institutional outcomes (β = 0.649, p < 0.001) compared to academic performance (β = 0.314, p < 0.001). Together, these dimensions explain 51.9% of the variance in overall institutional performance. The study contributes to the limited literature on integrated performance assessment in resource-constrained higher education systems. It offers empirically validated insights for policymakers and university leaders, emphasizing the importance of aligning academic and administrative capacities to enhance institutional effectiveness and inform strategic decision-making in public HEIs.