Transnational Education and Institutional Internationalisation Strategy: A Critical Literature Review

Abstract

Transnational education (TNE) has emerged as one of the most dynamic and rapidly expanding dimensions of contemporary higher education, reshaping the way institutions conceptualise and pursue internationalisation in an increasingly globalised world. As globalisation continues to accelerate borderless educational exchange, TNE has grown from a peripheral activity into a central strategic concern for higher education institutions in both providing and receiving countries. However, despite the growing volume of literature on the subject, there remains a need for a comprehensive and critical synthesis of how TNE simultaneously influences institutional internationalisation strategies and affects the educational systems and economies of host countries, particularly within developing nation contexts. This study therefore addresses two core research questions: how TNE influences the strategic internationalisation processes of higher education institutions in both providing and receiving countries, and what impacts TNE has on the local educational systems and economies of host nations. To address these questions, a narrative literature review was conducted, drawing on approximately 73 peer-reviewed sources gathered from four major academic databases — Scopus, Web of Science, EBSCO, and Google Scholar. The findings reveal that while TNE offers considerable opportunities, including expanded access to higher education, enhanced graduate employability, and increased institutional competitiveness, it also presents significant challenges, among them quality assurance concerns, Western-centric curriculum design, financial dependency, and the risk of educational decline in host countries. Evidence drawn from the United Arab Emirates, Botswana, and Mauritius further illustrates how socioeconomic, political, and cultural contexts shape TNE adoption and its outcomes at the national level. It is consequently argued that sustainable and equitable TNE requires locally responsive, ethically grounded frameworks that balance the commercial imperatives of providing institutions with the genuine educational development needs of host countries, particularly in the developing world.