Abstract:
MOOCs platforms are challenging higher education by providing accessible,
flexible and affordable education to their customers. They emerge as disruptors in higher
education through the introduction of new technologies and business models. The study is
constructed on the value proposition component of business model provided by MOOCs
and aims to identify its effect on the existing business model of engineering universities.
Students are regarded as the internal customers while employers are the external
customers of the university learning process. MOOCs help in developing skills among
students and linking them to their potential employers as part of both of their value
propositions. Career motivation is driving students towards MOOCs for development of
skills that industries demand. Innovative industries are encouraging their employers for
bringing uniqueness and creativity. This study utilized the deductive approach; online
questionnaire was filled by 233 students enrolled in engineering universities and 212
employers having engineering background from IT/Engineering departments; who were
involved in the hiring of the graduates. Their found a strong relationship between MOOCs
and student’s skill development which is strengthened by career motivation among
students. Career motivation and MOOCs caused a 45% enhanced skills amid students. A
moderate relationship exists between MOOCs and employer’s employability propagation
which is weakened by workplace innovation showing a damping effect. Employers are
collaborating with MOOC platforms to refine their employee’s skills, yet a majority of
innovative workplaces lag behind in embracing MOOC skills. There observed an
uncertainty of employer’s trust on vocational skills platforms in recruiting process. Due to
the recent pandemic, most of the students are getting involved in online education and all
the institutions are compelled to take a step forward towards online education. Increasing
MOOCs popularity among students and employers pose a threat to existing inadequate
business model of universities. Things are changing and if not addressed properly,
universities will face disruption in a course of time. The Higher education need to revise
their course content and quality to stay competitive in the fast growing MOOCs trend. The
research was limited to engineering universities of few cities only; a future study can be
conducted on different universities in the backward areas of Pakistan having connectivity
issues. The research provides basis for conducting financial analysis of the prevailing
business models in higher education.
