University strategy in transnational higher education: The strategic approaches of newly established and ‘small’ international branch campuses

Newly established international branch campuses (IBCs) commence operations without a student body, and even after several years, many institutions fail to grow beyond 500 students. Despite having unique strategic needs, small IBCs are largely overlooked in the higher education literature. This research examines the organisational-level strategies of small IBCs, along with the push and pull factors driving their adoption. Based on data from expert informants holding senior management positions at 14 IBCs globally, as well as various secondary sources, we identified five key strategic options: pursuing growth, maintaining the status quo, and transforming, selling, or closing the campus. It was found that institutional growth objectives serve as a primary driver of strategic direction, with prospector-type institutions often achieving the highest success. This paper explains the drivers behind institutions’ strategic choices and discusses the implications, offering insights relevant to small higher education institutions in both international and domestic settings.