Higher education and research institutions (HERI) are facing new challenges due to substantial changes in the business environment, as well as increasing regulatory impact by local and European Union (EU) legislation. Accordingly, strategic management process is becoming more complex. Regulatory compliance governance (RCG) as a holistic element of strategic management function is a relatively new phenomenon. It is even less discussed in research area of higher education and research management. The aim of the study and paper is to reveal how RCG functions are managed in HERI in Latvia and evaluate the role of RCG in strategic management of these institutions.
The research is developed by applying the triangulation method. The theoretical background is formed on state of the art literature review. The authors perform field research on the impact of local and EU legislation, as well as higher education institutions strategic management paying particular attention to one part of it - regulatory compliance management.
The results of research exposed the tools and extent to which local and EU legislation impacts HEI in Latvia. Further research can be performed to synthesize the most successful strategic management models that involve dedicated RCG resource on strategic decision level and strengthen competitive capabilities of HERI.