120reporting, and standardized testing. • The Market: Market actors in higher education are driven by proﬁt for owners and

shareholders. Governing mechanisms are characterized by efﬁciency and cost

reduction executed by professional management (distinct from teaching faculty). • The Academic Enterprise: This is an emerging hybrid form that may be public- or

privately owned, aiming at social transformation by connecting instruction to

knowledge-generation and social impact. The Academic Enterprise is managed

by so-called knowledge entrepreneurs with management drawn from and blended

with faculty, but acting entrepreneurially and seeks to demonstrate economic and

social progress. One example of academic enterprise is North Dakota State University’s Challey Institute for Global Innovation and Growth. In just 6 months and with a generous $30 million in support led by alumni Sheila and Robert Challey, College of Business Dean Scott Beaulier created and implemented a vision for a business-school–based center that enhances economic opportunity and human ﬂourishing. The new center leverages the interdisciplinary expertise of university faculty, including fellows from computer science, public health, construction management, and engineering, as well as business to research areas of innovation, trade, and institutions to identify policies and solutions to better society. A further example of academic enterprise is that the U.S. universities that spawn the most new companies combine strong research and teaching, and do not necessarily build large structures around these entities (see Rothaermel et al., 2007, for a systematic review of university entrepreneurship, and Fini et al., 2020 for a review of university regulations that foster science-based entrepreneurship). This view is consistent with an emerging literature on value creation spotlighting the importance of knowledge-building proﬁciency (Madden, 2020). That is, a priority for the design and implementation of university research structures is to enable the development of knowledge and innovation.

3.4 Business School Level

Many business schools employ base plus bonus models to reﬂect faculty, and in some cases also staff, efforts. A typical model is a base salary, and then an additional annual stipend to hold a chair or fellowship position, which the faculty can apply for periodically based on solid performance. Another example from a private, globally Reducing Higher Education Bureaucracy and Reclaiming the Entrepreneurial. . .

121ranked business school in Europe is that faculty receive a base salary and then a bonus at the end of the year based on the quality of their teaching and other efforts. In contrast to other business school models, this bonus can exceed the base, thereby incentivizing faculty to teach the greatest share of classes at the highest quality, as teaching evaluations are used to calculate the bonus. Many other European, American, Australian, and Asian business schools provide bonus pay for faculty who publish in the highest tier of academic journals, typically between $2000 and $15,000 per article, but sometimes scaled to reﬂect co-authorship (e.g., if co-authors are at the same institution, the funding is split). As a general rule, faculty who are presently high-performing and plan to stay active in the future are more likely to accept innovative compensation models that place excess revenues in a pool such that the business school retains proﬁts from some activities, which are then reallocated based on recent performance.

3.5 Business Unit Level

Business schools and other entities can also develop entrepreneurial policies at the business unit level. One example with six subsequent years of data is a memorandum of understanding (MOU) to establish online programs that resulted in nationally ranked programs and a strong revenue pipeline. In March 2014, Florida Atlantic University’s (then) Provost Gary Perry, (then) CFO Dorothy Russell, and Dean of the College of Business Daniel Gropper signed a memorandum of understanding (MOU) that provided for the College of Business (COB) to develop a self-sustaining Online Bachelor’s in Business Administration (OBBA) that would result in a 38.3% portion of total tuition and fees paid by students in the online BBA classes. The university did not provide any faculty lines or other resources from central administration to grow this online program, and the College of Business paid for online