A Novel Hybrid Approach for Prioritizing Investment Initiatives to Achieve Financial Sustainability in Higher Education Institutions Using MEREC-G and RATMI

Abstract

Financial sustainability is a crucial challenge for higher education institutions due to various challenges and constraints. This necessitates determining their investment priorities accurately based on multiple criteria to ensure a sustainable income. This study puts forward a novel, hybrid approach for prioritizing the financial sustainability plan investment initiatives in higher education institutions using an updated method for the removal effects of criteria with a geometric mean (MEREC-G) and ranking the alternatives based on the trace-to-median index (RATMI) techniques. The developed approach is applied to the strategic financial sustainability plan investment initiatives at King Abdulaziz University (KAU). The study’s results prioritized the investment initiatives based on quantitative and qualitative criteria with different weights. Results also revealed the potential initiatives that can be considered quick-winning initiatives. Furthermore, results determined one high-potential initiative for each of KAU’s financial sustainability plan pillars. Based on the results, the study recommended four steps that assist KAU in ranking the initiatives effectively. Implications of the novel approach include assisting decision makers in higher education institutions to evaluate investment initiative priorities based on objective and subjective criteria to ensure the financial sustainability of their institutions.