Abstract
The advent of micro-credentials has introduced a transformative approach to higher education, offering flexible, modular learning opportunities that align with the dynamic demands of the workforce. Despite the growing interest in micro-credentials, there remains a significant gap in the literature regarding the institutional readiness for a successful implementation. This study addresses this gap through a mixed-method approach to examine institutional readiness for micro-credential implementation in higher education. Initially, a qualitative study was conducted using a modified Delphi method, engaging 11 experts in micro-credentials. These professionals shared their experiences and challenges in implementing these programs. A thematic analysis yielded a conceptual framework with 11 dimensions, revealing key factors such as human and financial resources, infrastructure, accreditation, governance, curriculum, transferability, competition, partnerships, market demands, industry standards, and government policies. Subsequently, a quantitative analysis was performed, starting with the development of a 54-item questionnaire based on the Delphi study. This was employed in a pilot study with 40 participants, revealing a Cronbach's alpha of 0.98, indicating excellent reliability. An online survey was then distributed, with 261 participants responding. Exploratory Factor Analysis (EFA) was conducted, identifying 34 items loading onto six factors with a KMO of 0.630 and Bartlett's Test of Sphericity showing a significant value (p < 0.001), indicating sufficient correlation among items for EFA. The factors identified were grouped into six readiness dimensions: Collaborative Readiness, Cultural & Governance Readiness, Resource Readiness, Program Readiness, Market Readiness, and Policy Readiness. Further cluster analysis identified three clusters: Established Institution, Emerging Institutions, and Foundational institution. The research presented in this article has significant implications for policy development to guide the implementation of micro-credentials in the higher education sector. The findings provide valuable insights for higher education institutions, policymakers, and stakeholders, paving the way for strategic planning and the development of robust systems to support lifelong learning and workforce development through micro-credentials.