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Purpose

As big data and artificial intelligence (AI) reshape industries, higher education must shift from traditional discipline-based models to frameworks that emphasize interdisciplinary integration and competency development. This paper proposes a competency-based educational framework for engineering education reform supported by Decision-Making Trial and Evaluation Laboratory (DEMATEL) analysis.

Design/methodology/approach

This research identifies key factors for educational reform through a systematic review of peer-reviewed journal articles. Subsequently, the significance of these factors and their causal relationships is examined using the DEMATEL method.

Findings

The study identifies a dynamic interplay between five foundational elements: curriculum design, industry partnerships, technological resources, faculty competence and ethical standards. The outcomes show that faculty readiness (F2) is the most critical factor on others. Curriculum design (F1), faculty readiness (F2) and ethical guidelines (F4) have mutual interactions. Technological infrastructure (F3) and ethical guidelines (F4) both had mutual interactions. Industry collaboration (F5) is influenced by curriculum design (F1), faculty readiness (F2), technological infrastructure (F3) and ethical guidelines (F4). The proposed framework encourages cross-disciplinary education, practical exposure and adaptable learning pathways, aligning academic practices with the evolving demands of industry and society.

Research limitations/implications

The study focuses on a competency-based approach and does not explore other educational models in depth.

Practical implications

This framework offers a practical guide for academic institutions to realign educational practices, fostering the development of hybrid skills and ethical reasoning through integrated, interdisciplinary learning.

Originality/value

The paper presents a novel competency-based framework for engineering education reform, addressing the industry's need for graduates with hybrid skills and ethical awareness.

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