BEYOND PUBLIC AND PRIVATE: LEGAL STATUS AND OWNERSHIP AS DETERMINANTS OF INSTITUTIONAL DIFFERENTIATION IN HIGHER EDUCATION
Main Article Content
Abstract
This paper examines how legal status and ownership contribute to the differentiation of higher education institutions (HEI), using the Portuguese higher education (HE) system as an empirical context. It aims to move beyond the conventional public–private dichotomy by demonstrating that legal status and ownership are key variables in explaining the diversity and behaviour of private HEI. The study adopts a qualitative research design based on documentary analysis, combining two analytical axes: legal-institutional mapping and ownership mapping. The analysis draws on official and institutional sources, including the Portuguese Official Gazette, the Justice Portal, and the SABI database, covering the period from 2004 to 2021. This allows for both cross-sectional and longitudinal analysis. The findings reveal that private HE is characterised by a high degree of organisational heterogeneity, with multiple legal forms of ownership coexisting. This diversity stems directly from the legal framework governing the sector. The study also shows that ownership in HE should be understood as a system of control rather than merely a formal property relationship. A central finding is the pivotal role of the founding entity in the Portuguese private HE sector, where institutions generally lack autonomous legal personality and effective control is exercised by founding entities that establish and own them.
Downloads
Article Details

This work is licensed under a Creative Commons Attribution 4.0 International License.
All articles published in e3 – Journal of Economics, Business and Entrepreneurship in the community of Portuguese-speaking countries are licensed under the Creative Commons Attribution (CC BY) license.
This license allows users to share (copy and redistribute the material in any medium or format) and adapt (remix, transform, and build upon the material) for any purpose, including commercial use, provided that appropriate credit is given to the original author(s) and the journal, a link to the license is provided, and any changes made are indicated.
References
Amaral, Alberto., & Magalhês, A. (2023). Handbook on higher education management and governance. Edward Elgar Publishing.
Bartelse, J., & van Vught, F. (2009b). The European Higher Education Classification: Objectives and Concepts. In Higher Education Dynamics (Vol. 28, pp. 57–69). Springer Science and Business Media B.V. https://doi.org/10.1007/978-90-481-2249-3_4
Bernasconi, A. (2011). A legal perspective on “privateness” and “publicness” in Latin American higher education. Journal of Comparative Policy Analysis: Research and Practice, 13(4), 351–365. https://doi.org/10.1080/13876988.2011.583105
Bertolin, J. C. G. (2011). The quasi-markets in higher education: From the improbable perfectly competitive markets to the unavoidable State regulation[Os quase-mercados na educação superior: Dos improváveis mercados perfeitamente competitivos à imprescindível regulação do Estado]. Educacao e Pesquisa, 37(2), 237–248. https://doi.org/10.1590/S1517-97022011000200002
Buckner, E. (2017). The Worldwide Growth of Private Higher Education: Cross-national Patterns of Higher Education Institution Foundings by Sector. Sociology of Education, 90(4), 296–314. https://doi.org/10.1177/0038040717739613
Buckner, E., & Zapp, M. (2021). Institutional Logics in the Global Higher Education Landscape: Differences in Organizational Characteristics by Sector and Founding Era. Minerva, 59(1), 27–51. https://doi.org/10.1007/s11024-020-09416-3
Diogo, S., Carvalho, T., & Amaral, A. (2015). Institutionalism and Organizational Change. In H. and D. D. D. and S.-O. M. Huisman Jeroen and de Boer (Ed.), The Palgrave International Handbook of Higher Education Policy and Governance (pp. 114–131). Palgrave Macmillan UK. https://doi.org/10.1007/978-1-137-45617-5_7
Ferreira-Fernandes, M. E., de la Torre García, E. M., & Machado-Taylor, M. de L. (2025). Unraveling the Legal Labyrinth: Regulatory Constraints and Survival Challenges of Private Higher Education in Portugal. In https://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/979-8-3373-0407-6.ch001 (pp. 1–42). IGI Global Scientific Publishing. https://doi.org/10.4018/979-8-3373-0407-6.CH001
Ferreira-Fernandes, M. E., García, E. M. de la T., & Machado-Taylor, M. de L. (2025). 50 Years of Private Higher Education in Portugal: A Comprehensive Review of Sector Development Through the Lens of Legislative Evolution. In https://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/979-8-3373-1027-5.ch003 (pp. 63–88). IGI Global Scientific Publishing. https://doi.org/10.4018/979-8-3373-1027-5.CH003
Ferreira-Fernandes, M. E., Machado-Taylor, M. L., Elisabete, M., & Fernandes, F. (2025). Quality Assurance in Higher Education: Regulatory Waves and Strategic Responses in Private Sector, Evidence from Portugal. https://doi.org/10.33552/IJER.2025.05.000617
Gonçales, R. H. (2014). The New Portuguese Law on Private Foundations. In Ius Gentium (Vol. 39, pp. 227–251). Springer Science and Business Media B.V. https://doi.org/10.1007/978-94-017-9069-7_12
Hart, O., & Moore, J. (1990). Property Rights and the Nature of the Firm. Https://Doi.Org/10.1086/261729, 98(6), 1119–1158. https://doi.org/10.1086/261729
Holmén, J., & Ringarp, J. (2023). Public, private, or in between? Institutional isomorphism and the legal entities in Swedish and Finnish higher education. Nordic Journal of Studies in Educational Policy, 9(1), 57–71. https://doi.org/10.1080/20020317.2022.2155348
Jamshidi, L., Arasteh, H., NavehEbrahim, A., Zeinabadi, H., & Rasmussen, P. D. (2012). Developmental patterns of privatization in higher education: A comparative study. Higher Education, 64(6), 789–803. https://doi.org/10.1007/s10734-012-9529-0
Kwiek, M. (2015). The effects of Europeanisation on institutional diversification in the western balkans. In The Globalisation Challenge for European Higher Education: Convergence and Diversity, Centres and Peripheries (Vol. 4, pp. 233–258). Peter Lang AG. https://doi.org/10.3726/978-3-653-06508-4
Lepori, B. (2022). The heterogeneity of European Higher Education Institutions: a configurational approach. Studies in Higher Education, 47(9), 1827–1843. https://doi.org/10.1080/03075079.2021.1968368
Levy, D. C. (2011). Public policy for private higher education: A global analysis. Journal of Comparative Policy Analysis: Research and Practice, 13(4), 383–396. https://doi.org/10.1080/13876988.2011.583107
Levy, D. C. (2012). How Important Is Private Higher Education in Europe? A Regional Analysis in Global Context. European Journal of Education, 47(2), 178–197. https://doi.org/10.1111/j.1465-3435.2012.01517.x
Levy, D. C. (2018). Global private higher education: an empirical profile of its size and geographical shape. Higher Education, 76(4), 701–715. https://doi.org/10.1007/s10734-018-0233-6
Levy, D. C., & Zumeta, W. (2011). Private Higher Education and Public Policy: A Global View. Journal of Comparative Policy Analysis: Research and Practice, 13(4), 345–349. https://doi.org/10.1080/13876988.2011.583772
Meek, V. L., Goedegebuure, L., & Huisman, J. (2000). Understanding diversity and differentiation in higher education: An overview. In Higher Education Policy (Vol. 13, Number 1, pp. 1–6). https://doi.org/10.1016/S0952-8733(99)00032-X
Meira, D. (2021). Cooperative economic groups at the crossroads between the principles of cooperation among cooperatives and autonomy and independence. An analysis under the Portuguese Law[Os grupos económicos cooperativos na encruzilhada entre os princípios da intercoope…. Boletin de La Asociacion Internacional de Derecho Cooperativo, (59), 149–181. https://doi.org/10.18543/baidc-59-2021pp149-181
Meira, D. A. (2018). O princípio da participação económica dos membros à luz dos novos perfis do escopo mutualístico. Boletín de La Asociación Internacional de Derecho Cooperativo, (53), 107–137. https://doi.org/10.18543/BAIDC-53-2018PP107-137
Meira, D. A., & Ramos, M. E. (2019). Projections of the principle of autonomy and independence in Portuguese cooperative legislation[Projeções do princípio da autonomia e da independência na legislacąõ cooperativa portuguesa]. Boletin de La Asociacion Internacional de Derecho Cooperativo, (55), 135–170. https://doi.org/10.18543/baidc-55-2019pp135-170
Meira, D., & Ramos, M. E. (2022). Social Enterprises and Benefit Corporations in Portugal. In The International Handbook of Social Enterprise Law: Benefit Corporations and Other Purpose-Driven Companies (pp. 739–758). Springer International Publishing. https://doi.org/10.1007/978-3-031-14216-1_36
Okyere, E. D., Yamoah, E. E., & Nkansah, J. O. (2026). Governance and resource strategies in Ghana’s dual-sector higher education: a case study analysis. SN Social Sciences, 6(4). https://doi.org/10.1007/s43545-026-01406-8
Parada, J. R. (2010). Universidades públicas y privadas: Un enfoque tridimensional. https://doi.org/10.38178/CEP.VI120.383
Stout, L. (2017). CORNELL LAW SCHOOL Corporate Entities: Their Ownership, Control, and Purpose. http://ssrn.com/abstract=2841875http://ssrn.com/abstract=2841875Electroniccopyavailableat:https://ssrn.com/abstract=2841875Electroniccopyavailableat:http://ssrn.com/abstract=2841875
Veiga, A., Magalhães, A., & Amaral, A. (2015). From Collegial Governance to Boardism: Reconfiguring Governance in Higher Education. In J. Huisman, H. de Boer, D. D. Dill, & M. Souto-Otero (Eds.), The Palgrave International Handbook of Higher Education Policy and Governance (pp. 398–416). Palgrave Macmillan UK. https://doi.org/10.1007/978-1-137-45617-5_22
Zhang, M. X. (2006). A financial perspective: Categories of higher education institutions. Frontiers of Education in China, 1(4), 475–486. https://doi.org/10.1007/s11516-006-0024-1