Redesigning learning pathways: recognizing non-formal competencies through micro-credentials in higher education

Purpose This paper explores how micro-credentials can redefine learning pathways in higher education by recognizing competencies acquired through non-formal learning, specifically extracurricular activities. The expected contribution is twofold: (1) to provide empirical insight into the value perception of micro-credentials in the context of non-formal learning and (2) to outline design recommendations for an interoperable micro-credential ecosystem in higher education. Design/methodology/approach The study examines the perceived value and adoption of micro-credentials among key stakeholders – students as earners and employers as verifiers – focussing on factors such as perceived benefits, sacrifices, trust, and their influence on adoption intention. Guided by the Value-Based Adoption Model (VAM), parallel surveys were administered to 500 students and 63 employers. Findings The findings reveal that, for students, perceived benefits and trust are the strongest predictors of perceived value, directly shaping their intention to adopt micro-credentials. Employers emphasize credibility, institutional trust, and demonstrable competencies as decisive factors in recognizing micro-credentials within recruitment and talent evaluation. Both groups acknowledge non-formal learning and participation in extracurricular activities as a valuable source of skills. Research limitations/implications The student sample is largely drawn from a single HEI, limiting the generalizability of results. While the employer sample spanned multiple industries, it was relatively small compared to student participants. Methodologically, reliance on self-reported perceptions may have introduced bias. Social implications The study contributes to the growing discourse on knowledge innovation in higher education by positioning micro-credentials as instruments for redesigning educational pathways. Originality/value The research underscores the transformative potential of micro-credentials in higher education, promoting non-formal learning and strengthening graduate employability and bridging the gap between academic learning and industry needs.