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Balancing skills in the digital transformation era: The future of jobs and the

role of higher education

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DOI: 10.1177/09504222211029796

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Qualification as a societal challenge and the role of higher

education from a system approach Alessandro R. Goulart

Bandtec Digital School, S~ao Paulo, Brazil

Lara B. Liboni University of S~ao Paulo, Ribeir~ao Preto, Brazil and

Ivey Business School, Western Ontario Univesity, London, Canada, and

Luciana O. Cezarino Federal University of Uberlândia, Uberlândia, Brazil and BLISS - Digital Impact Lab, Department of Management,

Ca’ Foscari University of Venice, Venice, Italy

Abstract

Purpose – Looking at the planet as our main and unique asset, the authors encounter fragile zones needing special attention more than others, such as emerging countries. One of their most urgent problems is the qualification gap of theworkforce and the consequent increasing poverty and social exclusion. Their backward education system is partially responsible for this disparity, especially in technology-related sectors. In this sense, higher education institutions (HEIs) play a fundamental role in shortening this gap and solving this dichotomy. The purpose of this study is to conduct a systemic study to address the qualification gap of emerging countries, offering a framework to minimize this grand societal challenge, taking Brazilian economy as example. Design/methodology/approach – Using the soft system methodology (SSM), the authors propose systemic solutions to the qualification gap in Brazil by analyzing different stakeholder perceptions and developing a feasible-change framework to transition to an enhanced higher education (HE) model in Brazil. Findings – Results show three main aspects that draw the framework: the education of social and emotional skills, internship support during the first experience in the job market and a closer relationship with employer companies. Research limitations/implications – As a future direction, the framework proposes positive changes focused on soft skills-based education and the partnership between companies and HEIs. Originality/value – The contribution relies on an original application of a system methodology to propose solutions to the qualification gap, involving different stakeholders, their salience and perceptions. The use of SSM to analyze complex problems from stakeholders’ perspectives demonstrated how a system approach could empower the stakeholder theory in addressing grand societal challenges.

Keywords Higher education, Qualification, Grand societal challenges, System approach, Emerging countries

Paper type Research paper

1. Introduction Emerging countries, keeping their diversity, are in their essence nations with high transformation potential toward economic growth, social equality and environmental preservation (Panatoyou, 2016). However, they are part of regions that present significant weaknesses in their structures. Poverty, unemployment, illiteracy, poor hygiene, health conditions and political and institutional problems are some of the aspects to be urgently considered in these countries (Fosu, 2017).

The lack of qualification in the labormarket and its consequent unemployment is critical in emerging economies (Bashir, 2007), representing a grand societal challenge. Unemployment is already known to be one of the most severe causes of poverty in

The role of higher

education

The current issue and full text archive of this journal is available on Emerald Insight at:

https://www.emerald.com/insight/2042-3896.htm

Received 3 June 2020 Revised 1 December 2020 Accepted 10 January 2021

Higher Education, Skills and Work-Based Learning

© Emerald Publishing Limited 2042-3896

DOI 10.1108/HESWBL-06-2020-0118

emerging countries highly related to low-quality higher and technical education (Sevilla and Farias, 2020). There is a growing call to address this complicated obstacle to the development of nations and industries (Backes-Gellner and Tuor, 2010; Fleming and Søborg, 2014; Lopez et al., 2019).

Because it is a social problem related to employment, it demands the engagement of several stakeholders. However, higher education institutions (HEIs) are the key stakeholders in changing this reality. Higher education has to be reshaped to transition toward filling this qualification void (Ehrenberg, 2012). Education, as a social subsystem, is influenced by the context. Nations with the best education indicators present minor social differences, lower violence levels, environmental concerns andmore respect for differences (Carnoy and Samoff, 2014). Therefore, education is vital to the development of nations; in times of technology transformation and grand challenges (Schultz, 1971; Hanushek andW€oßmann, 2007; Cakcler et al., 2008), the discussion on the meanings and role that education must play for society are of increasing importance (Vaganova et al., 2019). The qualification gap is worsened by technology, a dichotomy since its role should be to improve the development indexes of these countries instead of leveraging the qualification challenge (Mello et al., 2020). This duality may be responsible for further increase in the distance between the developed countries and the so-called emerging economies (Ziankova et al., 2019). Technology changes in a less predictable way, the work dynamics in low and middle-income countries, requiring the development of technological expertise in a complex context of struggling economic forces (Jedwab et al., 2017; Castelli et al., 2012).

Each production model demands people with specific skills, expertise, abilities and values, forcing education institutions to adapt their professional development commitment to society (Bollini, 2016; K€uller, 2010). The new industrial and technological paradigm is forcing HEIs to rethink to meet the demands of the dynamic changing job market (Ramsden, 1991; Ball and Halwachi; 1987; Jones, 1995; Jones and Taylor, 1990). This adaptation and resilience are even more urgent when considering professional development in technology- related sectors (BRASSCOM, 2019).

Aprevious studywith leading technology companies confirms the lack of necessary skills in the information technology professional, representing a critical factor for the labor market in this sector (Goulart, 2019). The ongoing technological changes and digital transformation require new skills, as well as new educational methods and pedagogical strategies (Liboni et al., 2019). In order to follow the technological pace of developed countries, emerging economies will need to rethink higher education (HE) in technology (Blackler and Orbone, 2003; World Bank, 2019), promoting the development of an appropriateworkforce that is able to address the needs of digital transformation and the fourth industrial revolution (Luthra and Mangla, 2018).

In this sense, this research aims to discuss how information technology (IT) in HE is a key stakeholder in reducing the unemployment enhanced by digital transformation in emerging economies, developing professionals prepared for the technology job market. We unfold this complexity through the lens of different stakeholders (Churchman, 1968), and we provide a framework of viable solutions to address this grand societal challenge, using Brazil as a case study.

2. Unemployment and qualification of the workforce Brazil is the second-largest economy in theAmerican Continent and one of the world’s largest emerging economies. As a Brazil, Russia, India, China, and South Africa (BRICS) nation, Brazil is known for its foreign expansion regarding work and investment opportunities (B�ahn�areanu, 2019; World Bank, 2019).

Recent growth in the Brazilian economy caused a considerable improvement in the country’s unemployment rate. In a decade, the country’s unemployment rate was halved and continues to decrease (Plecher, 2020).

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The country has one of the largest workforces, and the demand rises across all sectors, especially for technology-related professionals (B�ahn�areanu, 2019). Despite Brazil’s political and economic instability in recent years, the local technology job market is booming.

Brazil is the Latin American country with the highest investment rate in technology- related sectors, accounting for 39.1% of the total investment, which corresponds to US$ 97.3 bn. In 2018, Brazil’s IT market grew by 4.5% (B�ahn�areanu, 2019).

Structural investments in mobility, big data and cloud computing are responsible for pulling this growth. The IT industry in Brazil has around 13,500 companies, registering for 2018 approximately 514,605 IT employees. This number has been continuously growing. From 2007 to 2017, it has grown by 76%, with an average annual growth rate of 6.1% (PWC Report, 2019).

There has been a change in the IT professionals’ profile in the last ten years, increasing importance for HE. The share of students those finished high school decreased from 40.7% in 2007 to 25% in 2018, with almost a threefold increase in students graduating from university (50,059 in 2007 to 148,590 in 2018).While a quarter of IT professionals had completed high school in 20,178, the vast majority (73%) had finished HE (PWC Report, 2019).

In 2019, IT manager was the number one position at the ranking for job market demand. However, reports point out that attracting the right professionals for these roles has been challenging, given that the set of skills for these roles is new. According to Hays (X), due to technology efficiencies and artificial intelligence development, there is more complexity to these roles, forcing companies to pursue professionals capable of deliveringmorewith limited resources (Brazil Tech, 2019; Kittur et al., 2013).

Technology sectors worldwide face significant constraint with the lack of skilled personnel to support the required roles (Furnell, 2021).

The labor market is saturated with qualified specialists with competencies that do not correspond to current demands (Simonova et al., 2021). This situation is even worse in Brazil, with a significant void between market needs and professional development (Brazil Tech, 2019). What is the role of higher education in changing this scenario?

It is mandatory to reshape HE and the educational environment in the digital age, rethinking teachers’ roles, teaching methods, learning processes and skills. The lack of connection between universities and businesses results in professionals with an obsolete set of skills unable to meet job requirements (Phan, 2021). Shifting from a not always up to date technical professional focus to a more skilled workforce demands new ways of engaging HE and the market (Barley, 1996).

3. Stakeholders of higher education in technology By definition, the stakeholder is any group or individual that could affect or be affected by the fulfillment of the organizational goals (Freeman, 1994). The stakeholder’s theory puts the shareholders as one of many groups of stakeholders that organizations relate in the decision-making process (Clarkson, 1995; Donaldson and Preston, 1995; Jones, 1995; Mitchell et al., 1997;Wood and Jones, 1995), including internal, external and environmental components that influence the company and its social legitimacy (Boaventura et al., 2009).

Thiswork understands the HE system through the lens of stakeholder theory, considering different groups of interests (institutions, students, government and companies) in a dynamic environment (Donaldson, 1999). System approach contributes to the vision of HE as a whole (Cezarino et al., 2019), understanding its consequences to the internal and external boundaries.HE must be understood as a social and historical legacy (Saviani, 2007) related to situations thatmark its time (Dias Sobrinho, 2005; Kuller, 2010). It changes alongwith society, culture, politics and economy dimensions (Teichler, 2008).

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Higher education in emerging countries changes reacting to the economic, regulation and technological innovation context (Porto and R�egnier, 2003; Choudaha, 2014). It usually assumes a dysfunctional role, becoming a certifier of expertise rather than an institution with a social purpose to qualify professionals both technically and as citizens (Caplan, 2018). The scenario of HE in technology in emerging countries demonstrates low-performance numbers. In 98.5% of technology courses, only 13% of the students graduate. Of 584 thousand available positions in the technology job market, 252 thousand were fulfilled, with 57% of remaining open positions (CENSUP, 2016). Employers have difficulty in hiring a skilled technology workforce (CENSUP, 2016).

Technological advance promotes structural changes in HE, requiring new teaching methods toward online disciplines and computer-based classes and new skills to develop a technology workforce (Blacklr and Orbone, 2003). Higher education needs to reinvent itself rapidly. The new demands of a digital society ask for professionals to fulfill technical, human and social purposes (Cezarino et al., 2019). Likewise, the qualified technology workforce is a core condition for the development of societies (Barbosa, 2014), growing importance in emerging economies (Liboni et al., 2019). Technology is a key factor in the development of emerging countries, highlighting the relevance of stakeholders involved in the development of professionals and sectors linked to technological advancement. New studies have to address the changes that HE will have to embrace to do justice to its essential role in developing professionals capable of dealing with technological and social challenges (Marris, 2018).

This complex problem requires system approaches. The systems theory involves the study of dynamic relationships between elements, understanding their contradictions, similarities and overlaps. A systemic study of HE will be represented by the relationship between its stakeholders, seeking for a more legitimate solution to this grand societal challenge.

4. Method The system approach enables the comprehension of complex environments and provides intervention methods for organizational improvements (Donaires, 2012). The soft system methodology (SSM) analyses different perceptions and elements of the same problem, presenting a holistic view of the system, involving all stakeholders (Checkland and Poulter, 2006). SSM is a systemic methodology to solve ambiguous situations, full of complexity, or still, by bringing newunderstandings and guidance to practitioners, so they can act in the real world (Zexian and Xuhui, 2010; Liboni and Cezarino, 2012). The SSM process follows seven steps that alternate between the real and the systemic world analysis (Figure 1):

SSM’s sequential steps aim to reduce the complexity of the problem situation to bring feasible short-term solutions (Liboni and Cezarino, 2012). Step 1 aims to describe the problem situation in a nonorganized format. In step 2, we structure the problem situation into categories to facilitate qualitative analysis. In step 3, we define the roots of the system, identifying its main elements and relationships. In step 4, the analysis is projected to the systemic world, creating solutions that preserve the system’s viability. Step 5 refers to deploying these actions in the face of challenges brought by the real-world context. Step 6 relates the role and relationship of each stakeholder regarding the previous solutions, and finally, Step 7 reveals which solutions are feasible in the short-term and how to incorporate them as actions in the system.

Under the SSM approach, the investigator will be able to suggest changes to the system based on his or her perceptions of the analyzed data. In this study, step 5, 6 and 7 will demonstrate how the interviews served as data support so that suggestions could emerge, following the steps of the SSMmethod. We collect data using semistructured interviews with

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different stakeholders of HE in technology. The locus of our research is in an emerging economy, Brazil. Interviews were considered an adequate technique to collect data by presenting the possibility of using improvisation and changing the sequence of questions during the conversation, shaping it to the points of interest. We developed a ten-question script to use during the one-hour interviews. We divided the interview script into two sections: the first section with general questions for all of the stakeholders and the second section with specific questions, fostering discussions on the role and relationship of each stakeholder to the system as a whole. The informal approach was based on a personal, conversational format. We interviewed human resource managers from IT companies (8), students from three different universities (18), teachers (10), HEI managers (2), IT trade associations (2) and supervisors from the National EducationMinistry (MEC) (3). The sample is convenient and does not intend to generalize the results insights. We transcripted the integral data, and then applied the SSM to analyze empirical evidence, proposing a framework with practical guidelines.

5. Results In the first step of SSM, we illustrate the unstructured problem situation. This includes a description of the interviews with all of the selected stakeholders in the research. The reporting sequence is as follows: IT companies’ managers, trade associations, teachers, HEI managers, government employees and students.

5.1 Step 1 – description of the unstructured problem To managers, the qualification gap and unemployment are closely related to the role of HEIs in digital transformation. They are not able to prepare a qualified technology workforce with the necessary technical and managerial skills.

To managers, the HE system is not achieving its purpose. “Today, with the increasing number of private institutions, students are currently not being prepared for the job market” (Manager B). Also, one of the managers used an impact statement, “HE has become a factory of experts” (Manager C). They also report a failure to focus on innovative training and the inability to teach new trends, languages and technologies.

Many reasons justify the answer, such as the excessive technical content and backward curriculum content. “Teaching is focused on traditional techniques. They do not teach professionals to have a broad and critical view of problems providing possible solutions; the

Real World Perspective

3. Root Definitons of

relevant system

1. Problem situation

4. Conceptual Models

Systemic Thinking (Systemic World)

Real World Perspective

6. Feasible and

desirable changes

7. Actions to improve problem situation

5.

Comparision

4 with 2

2. Expressed problem situation

Source(s): Checkland, 2000 (p. 16)

Figure 1. SSM

methodology steps

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result is that students enter the jobmarket only concernedwith technical dimensions, without worrying aboutwhat they are doing or solving andwhat benefitswill come from the solutions they develop” (Manager A). This lack of broad and critical insight leads to the development of products that do not satisfy end users, the so-called “that is not what we asked for” (Manager G). They report the teaching emphasis for commercial purposes, which result in “cheap technology labor,” as named by managers. They affirm that humanistic formation and citizenship awareness should be the purpose of IT HE “to train ethical citizens and not only skilled professionals (Manager H)” and “to promote an integral professional development preparing them for responsible leadership, critical thinking, ethics and morality and not only technical knowledge (Manager F).”

Regarding stakeholders’ alliances, managers point out a positive trend in developing partnerships betweenHEI and companies. However, they describe some barriers linked to the speed of interaction, mutual needs and cultural differences. About the relationship with teachers, managers affirmed not noticing a real commitment to students’ success. When asked about themajor responsible for changing HE, HEImanagers revealed that the HEI and the government are the main responsible stakeholders for acting toward change. Managers criticized the government’s role in this system, claiming that the assessment function is innocuous, and the system is in collapse. They affirmed that the evasion rate above 50% corroborates that the HEI is not relevant to the professional qualification. One of the respondents revealed that in his opinion, HE tends to be a commercial transaction based on “buying a diploma (Manager C).” Others also believe HE does not achieve the intended goals; “there is the commoditization of HE diploma (Manager B).”They emphasize the obsolescence of teachers, contents and methods.

IT trade associations highlighted the new skills demanded by technologymarkets. In their opinion, the current HE system cannot keep up with technological advances in digitization times, and it needs to align with the market and society’s needs. They point out the lack of practical knowledge as a significant problem in professional development.

They proposed some initiatives to address this problem, with active methodologies, such as problem-based learning (PBL) and team-based learning (TBL). They also mentioned the need for social abilities training and interdisciplinarity. One of the association managers was categorical in stating the importance of social abilities like “oral and written communication, teamwork, negotiation skills, respect to diversity and respecting hierarchy (Trade A)”. They also attest that it is necessary to straighten the ties between university and companies, in a close relationship. “No doubt, partnerships generate empathy and synergy, promoting greater effectiveness of professional education (Trade B).”

To teachers, the objective of HE is the integral education of human beings. For them, the increase in the technological workforce demand in the last few years resulted in the foundation of many HEI, but “in general teachers are still using an old teaching approach, based on the 1970s” (Teacher A). There are a few concerns with education quality improvement. Curriculums are old and narrow, not focusing on a holistic perspective, “they are only worried about what will be the next programming language to be taught (Teacher C).” They consider that HEI is not aligned with labor market demands, exposing that the problem is concentrated in the classroom due to an outdated mindset of many teachers, “HEI is slow in replying, and companies want promptness (Teacher E)”. We asked what they would do to minimize the problem and then revealed that “curriculums and schedules should be more flexible, working on the development of skills, competencies, with interdisciplinarity (Teacher G).” Teachers state that their relationship with the students changed substantially over time. The millennial generation is technology driven, and this impacts the way they relate. Teachers do not attribute a major responsibility to a single stakeholder. Instead, they believe in shared responsibility between HEI, teachers and society.

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Government employees from the Education Ministry (MEC) attribute the HE purpose as a “trigger to the country’s professional and cultural development (Gov A).” Both respondents denied that HE is achieving the expected results. “BrazilianHE is polarized; in otherwords, on the one side, universities that still preserve its nature and commitment with its main goal” (preparing the student to assume responsibilities for society) and on the other side we have universities that have a “business” focus, with scale concern rather than quality. The respondents were worried about the current quality of technology in HE. “There is a backward in the qualification of technology professionals in emerging countries, and it is not different in Brazil. The students have to undertake training courses after graduation to reach the required qualification standards demanded by the job market (Gov B).”

Some students said that the “internship experience at the company is more decisive in employability than the content learned in HEI (Students D and C).” One of the students also emphasized the importance of soft-skills development in addition to technical training. Students also confirmed that there is no HEI formal support at the beginning of the professional internship. They affirmed that some teachers stimulate the students to bring real classroom cases from their working experience. However, this is related to their teaching method rather than a formal project of internship support. The engagement of some teachers with students’ professional lives is not formalized and happens unconventionally. Therefore, students reported that when they find difficulties in internships, they look for specific teachers with whom they feel confident.

Regarding the teacher–student relationship, students pointed out emphatically. “The teacher is a mentor for professional life. He is the person to whom you will look for help (Student B).” They point out that the proximity with teachers is always fruitful, and that this connection can be a support during students ’ professional difficulties, humanizing the image of the teacher. Students revealed that they do not notice HEI efforts to change teaching methods for better learning outcomes.

However, they highlighted critical differences between teachers’ approaches and motivations inside the classroom. In general, students noticed that the HE they receive is not enough to prepare them for the labor market. According to the students, learning should be focused on problem resolution and innovation. Students understand that inserting new disciplines or changing curriculums does not necessarily meet market demands, “it is imperative to listen to the market (Student H).”

In general, there is a consensus that technology education does not promote humanistic education. Technology students tend to present difficulties regarding interpersonal relationships. HEI needs to teach students how to communicate and to deal with problems related to thework environment. “Communicatingwith themanager is a problem; they do not know how to communicate (Student k).” From the student’s perspective, HEIs are the critical stakeholders in solving the problem situation.

5.2 Step 2 – problem structured definition In this section, we discuss the unstructured problems exposed by the stakeholders in step 1. By exploring the professional qualification gap, we question stakeholders about their perception of each other’s responsibility. They understand that the qualification gap is a grand societal challenge, representing a threat to the emergence of the economy. Figure 2 shows that there is a consensus that the primary responsibility for changing this reality relies on the HEIs and the government.

Regarding the role of HE, the teachers highlighted integral education and human development as the main role of HE. Trade associations and HEI pointed out humanistic education asmore significant than technical education to professional development, agreeing that professionals have a role of social responsibility in society.

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We asked if they think HE is achieving its purpose. Respondents denied, except for the teachers those agree it partially meets its purposes. Managers from IT companies and HEI stated that one of the main reasons for this failure is explained by the quick expansion of HEI in emerging economies due to an increasing demand for qualified professionals to the job market, creating a scale focus and consequent commercial approach rather than targeting quality (INEP, 2018). Stakeholders affirmed that HE is not achieving the purpose of developing citizens, leaving behind the commitment to foster a social and humanistic education, critical in digitization times. Students report they do not receive the necessary qualification for employability, emphasizing lack of curriculum flexibility and the excessive focus on technical content.

The third question emphasizes the reasons why HE is failing in its purpose. The answers tend more to the consensus, highlighting that one of the main reasons is the lack of relationship with the business market, driving HEI to narrow the focus on the theory rather than practical problems and driving them to unfamiliarity with what the market expects. Business managers point out that the HEI trains students for operational tasks and is not preparing them to act with innovation and decision-making. Students, in turn, miss practical examples that could stimulate them to understand the business environment. Also, there is a clear lack of professional development focused on the noncognitive approach. On the other hand, teachers highlight that one of the reasons is their professional history, revealing that they reproduce what they were taught, teaching with traditional methods and theoretical focus. Finally, stakeholders emphasize that this situation is a general problem of HE, albeit

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2

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3

3.5

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5

Student

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Trade Association

Government

Technology companies

HEI

Professor

Student Professor HEI Trade Association Government

Figure 2. Stakeholder responsibility assessment to the problem

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worse in the technology market due to the rapid obsolescence of programming languages and tools.

We summarize the main problems as follows:

(1) Lack of a humanistic development,

(2) Excessive technical education, generalist and not focused on problem-solving,

(3) The commercial approach of education,

(4) Fragmented content and lack of interdisciplinarity,

(5) Obsolete content and methods and

(6) The disconnection between theory and practice.

However, when asked about possible existing initiatives to address this complex situation, they assume that they do not know any formal and structured initiatives. Also, stakeholders suggest that to solve the problem, it is fundamental that HEIs engage in this process in a joint movement toward change. They understand that more proximity between HEI and companies is necessary to align professional development with the needs of the market. Finally, all stakeholders agree that the humanistic aspect of education has been systematically ignored, highlighting a need for joint action to broaden the purpose of HE in technology.

5.3 Step 3 - root definitions In this stage, we verify the root definitions of the system to understand its elements and relationships. The analysis of root definitions is a way of studying the purpose and elements of a system. The achievement of a system’s purpose is what will ensure its viability, while its elements are the responsible actors. Through harmonious relationships among the elements, the system can achieve its purpose, guaranteeing viability.

In the studied context, the objective of the system is the professional development, which fosters employment; and the elements of the system are the stakeholders. Therefore, the SSM proposes new relations between stakeholders, developing new dynamics that meet this objective. It is essential to understand and study the missing ties and synergies between the elements of the system to better prepare and adapt this system to fulfill its purpose (Figure 3).

5.4 Step 4 – definition of concept models Concept models are abstractions of reality that help to encompass the system’s wholeness. In this study, it is necessary to understandwhich solutions couldminimize the complexity of the problem unfolded by the stakeholders in previous steps.

Regarding the lack of social skills development: The integration of humanistic aspects requires the HEI to leave the “comfort zone” and

enter a new noncognitive dimension. To do so, an HEImust develop a new set of nontechnical skills, guiding students to self-awareness and the development of ethics and responsibility as fundamental professional values. One of the proposed tools is the support of career life planning, aligned with students’ vocational goals, like the Working Life Project (J�auregui, 2018). An HEI has the responsibility to develop citizens with a humanistic education and support students’ professional life planning. Therefore, theHEI is invited to assume a key role in students’ social and emotional skills education. First, students spendmore time inside their colleges and universities than inside their home. Second, because conflicts are intense during this age transition between adolescence and adulthood, demanding more significant support so that young future professionals can make the right decisions regarding their personal and

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professional life. As students mentioned their confidence in their teachers as mentors for the professional career, a coordinated project involving teachers could be an option to address this demand.

Regarding the disconnection between theory and practice: The creation of startups incubators or accelerators supported by an HEI is an alternative,

where the students can learn, in a realistic environment, about innovation, new products and services to market. Also, structuring a trainee support center can help companies to manage internship performance and increase the competitiveness of the students in the job market.

Regarding excessive theoretical education, not focused on practical problem-solving and obsolete content:

HEIs can promote constant updates in their pedagogical projects, and the input for change would come from companies that would, with their practical experience, guide the definition of new curriculums in the educational program of HEI. Active methodologies can be implemented using case studies, simulations and decision-making dilemmas. Another initiative is the practical assessment of students’ performance; in other words, the student would be evaluated, for example, by the development project of a new product or technology, not by theoretical knowledge learning. New educational methods can engage students in active learning focused on practical problem solutions and full content integration. The development of social projects related to societal challenges can also develop citizenship and social responsibility value.

5.5 Step 5 – comparison of step 4 with step 2 In this step, we present the comparison between step 4 and 2 of SSM in order to relate systemic solutions to the real-world context limitations. The HEI should create actions to solve the problem, but the change would only be systemic with the support of all stakeholders. Conceptual models are based on theory and can be far away from reality. Therefore, it would be adequate to analyze if the suggested solutions brought by step 4

Student

Technology Companies

Trade associations

Government

Professors HEI

Figure 3. System elements of the root definitions

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corresponds to the real-world feasibility.We analyzed each solution and scored them as easy, moderate and difficult (Table 1).

5.6 Step 6 – feasible propositions Step 6 of SSM requires the assessment of the feasible actions suggested in step 5. We highlight three main actions and the paths to achieve them Table 2: HEI and business relationships, Professor Development and Qualification and Socioemotional education (Table 2).

5.7 Step 7 – actions to mitigate the problem-situation Step 7 of SSM consists of discussing the proposed solutions tomitigate the problem situation, considering all stakeholders related to the context and orchestrating the relationships among this system’s elements. These solutions are results from a profound analysis of the stakeholder’s interviews. The systemic methodology structures the connection between data analysis and the available literature, engaging theory and practice.

The HEI must reestablish students’ connection and develop new actions orchestrating the relations between teachers and technology companies. The main challenge is getting them involved in projects that prepare them for the labor market and, at the same time, contribute to a social transformation (Kittur et al., 2013). The bridge that separates technology companies and HEI has to be built in order to suppress those challenges (Furnell, 2021; Simonova et al., 2021; Phan, 2021). These two different worlds must search for new paths to achieve mutual interests, developing a professional capable of facing the market’s challenges and needs (Barley, 1996). The goal is to have a complete and competent professional that can use the heart, hands and head (Molderez and Ceulemans, 2018).

Code Suggested action Feasibility level

Stakeholders involved

1 Student humanistic education Difficult HEI–students and teachers

2 Partnerships to develop educational challenges (hackathon) using problem-based learning (PBL) and Triple-bottom line (TBL)

Easy HEI–companies

3 Internship supporting centers Moderate HEI–students 4 Partnership with companies and trade associations Easy HEI–companies’

associations 5 Participation of companies in the process of curriculum

development Easy HEI–companies

6 Assessment of student performance by an academic period not by discipline

Easy HEI–teachers

7 Active-learning techniques in the classroom Moderate Teachers–HEI 8 Higher rigor in student performance evaluation Moderate Teachers 9 Rigorous student’s selective process Easy HEI–students 10 Scholarship to the best students Easy HEI–students 11 Improvement in HEI evaluation Difficult Government 12 Investment in teacher qualification Easy HEI–teachers 13 Reachers’ talent retention Easy HEI–teachers 14 Studies about the job market trends Moderate HEI 15 Egress follow-up program Moderate HEI–students 16 Creation of an innovation ecosystem of start-up incubators Moderate HEI–companies 17 Insertion in social responsibility projects Difficult HEI–students and

teachers

Table 1. Suggested actions and

conceptual world

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These changes have to start by seeking the comprehension of the problem situation through a system approach. By diving into understanding each stakeholder’s perspectives, it is possible to carefully analyze the current situation and the microenvironment, with its limitations and potential resources.

An HEI has to invest in a long-term project. Innovation inevitably leads to an immediate increase in short-term costs. The commercial approach can be an obstacle to this shift since the financial motivation is still the decision criteria for justifying investments in HEI management. An HEI’s investment in teacher qualification has to be a clear trend. The HEI should stop considering the teacher only as an autonomous asset and offer human resources management support similar to those used by traditional companies, such as training, development, health, quality of life encouraging their involvement and empowerment with students and the proposition of value entrusted in this relation.

The HEI and teachers’ willingness to reinvent themselves all the time will have to be a pattern. The proximity of the stakeholders with the market requires getting out of their “comfort zone,” and teachers will have to see this kind of relationship as an opportunity.

Teachers are expected to work as a team, develop joint projects and content and become aware of their mentoring responsibility and leadership toward the student’s career decisions.

Companies and teachers can have a fruitful partnership in discussing curriculum, market challenges, learning exercises and active teaching techniques, though it would be naive to presume that this cooperation would not face cultural barriers to its unfolding.

Actions Goals Implementation methods

HEI and business relationships

Partnerships to understand the current context of companies and use this information to provide more aligned education actions to the market demands. Nevertheless, new education techniques based on the challenges that companies face can boost education performance. The social responsibility project can lead to filling the gap pointed out by stakeholders regarding the HE social role in the student’s career

Creation of incubators, active methodologies, research with companies for updating curriculum; development of a social responsibility project to foster the development of citizenship skills

Professor development and qualification

When seeking the improvement of education quality, solutions drive changes such as interdisciplinarity and flexible curriculum and the development of active methodology in the classroom. Therefore, we understand that those changes are direct consequences of implementing new human resource policies (salary, career and autonomy) to faculty

Investment in faculty qualification

Socioemotional education

During HE, students show emotional and professional guidance needs, pointing the teacher as a mentor for their career development. The HEI has the responsibility to promote the development of noncognitive skills and more humanistic education, focusing on preparing students to act as social agents toward change

Student support center with psychological support, internship follow-up and working life project development. Socioemotional skills contents

Table 2. Actions and implementation

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Students are invited to question their role in this change process. First of all, realizing the importance of academic years for the development of a successful career, embarking on a rigorous learning journey. Second, committing to develop beyond technical skills also emphasizes the development of social and emotional skills that will ensure a solid career based on responsibility, ethics and ability to deal with conflict and collaboration. Finally, recognizing the importance of the HEI to support them in their career life planning as well as to support them in dealing with their initial job market challenges.

Also, every grand disruption requires a mindset change, and stakeholders need to reinvent themselves, rethinking and revising their values. All stakeholders need to have a long-term perspective on these relationships and understand that education must go beyond the cognitive, supporting the student in their professional development integrally. In this sense, HEI will have to reinvent itself to systematically promote the development of socioemotional skills, which will prepare students to deal with the challenges they will encounter in their personal and professional lives andmanage people, conflicts and decisions, being able to adapt and collaborate.

6. Final remarks The relations between HEI, students, teachers and technology companies are the most important connections for the system viability. Skills for technology will be better performed in consolidating the links between HE and the job market and with teachers and students (Goulart, 2019). Building connections among stakeholders is the key for problem-solving (Blackler and Orbone, 2003). Technology itself is not the problem; instead, it is only the context-related phenomena of digital transformation (Liboni et al., 2019; Luthra and Mangla, 2018).

An HEI is pointed as the main stakeholder able to change this system’s dynamics, highlighting the importance of their relationship to the other stakeholders. As the system approach proposes, the fulfillment of the qualification gap (problem situation) is about reconnecting the stakeholders in new dynamic relations. In this sense, this desirable dynamism will be achieved by the articulation of all stakeholders involved (Figure 4).

The proposed changes vary from easy to difficult implementation. We consider it easy to implement those actions that are less complex to be developed by top managers. Of course, budget restrictions are imperative in categorizing the level of difficulty in implementing such

Feedback

HEI

Professors

Students

Government

Trade associations

Technology Companies

Figure 4. New stakeholder’s system dynamics

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changes. We also defined its level of difficulty regarding the allocation of resources and time. SomeHEIs have greater ability in developing some changes than others. Culture, flexibility of departments and other aspects can differentiate the ability to change from one HEI to another. Some abundant assets such as financial resources or full-time faculty also represent different levels of difficulty. The more dynamic the management of the HEI, the fewer are the obstacles to change; in this case, the less actionswill be classified as a difficult level to achieve.

Ideally, the main purpose of the education system is to build bridges between professional development and labor market, providing the best technical skills as well as a set of socioemotional abilities enabling students and future professionals tomanage their life career planning with a humanistic view, based on ethics and responsibility.

7. Conclusions As a grand societal challenge, the qualification gap hinders economic development in emerging countries, requiring rapid action. Within the challenging context of higher technology education in Brazil, this work has contributed to the proposition of systemic organizational solutions that involve all stakeholders. The systemic analysis allowed a new understanding of the problem situation, promoting discussions on how to orchestrate the stakeholders, defining three key axles (HEI–students, HEI–teachers and HEI–businesses) able to promote change toward a proper education, as required by the market and society.

To achieve this result, we used the pathway that led us to look at the root causes of the problem and understand the HE system. We developed our analysis by bringing the uniqueness of stakeholder perception, each with its worldview and value judgments. The results provided in-depth discussions on one of the most critical issues to the development of a nation, especially in an emerging country context, and demonstrated paths for transformational impacts and remodeling the studied system, albeit keeping its root definition. Curiously in a time of rapid technological development, marked by new digital paradigms and artificial intelligence, we are turning our eyes to human formation. The future of the work foresees the end of many jobs and the modification of many functions. What is certain is the man’s ability to deal with his emotions and to social challenges, so that he can have a successful career, despite the digital and technological transformations.

This study’s theoretical contribution relies on an original application of a systems methodology to propose solutions involving different stakeholders, their salience and perceptions. The use of SSM to analyze complex problems from stakeholders’ perspectives demonstrated how a system approach could empower the stakeholder theory in addressing grand societal challenges.

Besides, the study contributes to the advancement of knowledge in the professional technology qualification and can pave new directions toward aspects not yet worked in other research studies, helping to guide future studies about new skills andworks in the technology era. The work adds social value because it benefits the education of a profession in constant growth, improving student and teacher conditions and other stakeholders in the ecosystem. Moreover, it promotes the discussion on improving the employability of technology professionals, contributing to their absorption by the labormarket and translating their years of effort and studies into profit generation and professional productivity.

As a managerial contribution, the work helps in driving changes, policies and new planning in higher technology education, contributing to more effective courses and education models, adequate to the current market demands. This work also influences public policy directions, when reiterates the need for flexible institutional assessments to the specificity of courses, regions and professions.

Supported by the stakeholder theory and system approach, we used the SSM to understand how an HEI is not being able to address this complex qualification gap, suggesting a framework that can offer alternatives for this problem-solving. The paper

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exhibits the failure of higher technology education in emerging countries through the perception of stakeholders. The lack of a humanistic soft-skill formation, the lack of active methodologies and the distance between real-world challenges and the lectures are the main problems. Systemic analyses revealed that the efforts to address this problem should be guided by the following: learning and educating for employability, partnerships with stakeholders to promote education and employability and investment in social and emotional education.

The research addresses problems of emerging economies, using Brazil as a case study. Although these countries can have common problems with HEIs, they are also developed countries and are common criticisms of HEIs, regardless of the country. The situation of unemployment is a common issue in Latin American countries; however, the fast growing of startups companies and the increasing number of job positions in the technology market are more similar to Asian emerging countries than to other Latin economies. This study can provide a base for future research to find new similarities among emerging countries and also point out new dissimilarities between the gaps in HE and the labor market profiles in technological contexts.

We performed in-depth interviews with educational stakeholders (teachers, students, companies, managers, HEI managers and trade association managers) and analyzed data using SSM (Checkland and Scholes, 1990) in its complete seven steps version. A multi-case study of HEI is suggested for future research to clarify the designed path and the constraints to state-of-the-art evolution in field research.

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Corresponding author Luciana O. Cezarino can be contacted at: lcezarino@gmail.com

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