UNDERSTANDING COMPETENCY DEVELOPMENT: THE ROLE OF WORK EXPERIENCE, WORK–STUDY COMPATIBILITY, AND INSTITUTIONAL INTEGRATION IN NORTHERN ALBANIA

Ardita Borici

https://orcid.org/0009-0000-1925-0956

University of Shkodra “Luigj Gurakuqi” Faculty of Economy, Shkodër, Albania

E-mail: ardita.borici@unishk.edu.al

Albjona Selimi

“Hamdi Bushati” Vocational High School, Shkodër, Albania

E-mail:  albjonah@outlook.it

Sinoida Shkambi

University of Shkodra “Luigj Gurakuqi” Faculty of Economy, Shkodër, Albania

E-mail: sinoida_shkambi@unishk.edu.al

 Abstract

Understanding how competencies are developed in higher education is essential for improving graduates’ employability, particularly in transition economies. This study investigates the role of work experience (WE), work–study compatibility (WSC), and institutional integration (II) in shaping competency development (CD) among university students in Northern Albania. Drawing on the work-integrated learning framework, the study conceptualizes competency development as a function of experiential engagement and institutional support. Primary data were collected through a structured questionnaire administered to 96 students and analyzed using multiple regression techniques. The results indicate that work experience and institutional integration have a significant and positive impact on competency development, while work–study compatibility does not exhibit a statistically significant effect. The model explains 49.6% of the variance in competencies. The findings highlight the importance of practical exposure and structured academic–industry linkages, contributing to the literature by demonstrating that competency development is driven more by actual experience and institutional mechanisms than by perceived alignment between study and work.

Keywords: Work-integrated learning; Competency development; Work experience; Work–study compatibility; Institutional integration; Higher education; Albania

JEL Classification: I23; J24; J21; A22

  1. Introduction

The increasing complexity of labor markets has intensified the need for higher education institutions to equip graduates with competencies that extend beyond theoretical knowledge. In transition economies such as Albania, this challenge is particularly evident, as graduates often encounter difficulties in meeting labor market expectations due to insufficient practical experience.

Work-integrated learning (WIL) has emerged as a key mechanism for bridging the gap between academic education and employment by integrating practical experience into the learning process. Despite growing attention to this approach, empirical evidence on how different dimensions of work-related experiences contribute to competency development remains limited, particularly in the context of developing regions.

This study aims to address this gap by examining the determinants of competency development among university students in Northern Albania. Specifically, it investigates the role of work experience (WE), work–study compatibility (WSC), and institutional integration (II) in shaping competency development (CD).

  1. Literature Review and Hypothesis Development

The professional development of students represents an integrated process that involves not only the acquisition of theoretical knowledge but also the development of practical skills and competencies required by the labor market. In this context, work experience during university studies is considered a key factor in preparing students for professional life. One of the most important theoretical approaches supporting this idea is David Kolb’s experiential learning theory, according to which learning occurs through concrete experience and reflection on that experience (Kolb, 1984). This theory emphasizes the importance of integrating theory with practice, making work experience a fundamental component of the educational process.

International literature indicates that work experience during studies has a direct impact on students’ employability. Students engaged in work-related activities develop transferable skills such as communication, teamwork, and problem-solving, which are essential in the labor market (Jackson, 2015). Similarly, employers tend to prefer candidates who have practical experience, as they are better prepared for professional challenges (Andrews & Higson, 2008). These findings are particularly relevant in the Albanian context, where lack of practical experience has been identified as one of the main barriers to youth employment (INSTAT, 2022).

An important factor influencing the role of work experience is the alignment between studies and employment. Students who work in fields related to their academic program benefit more in terms of understanding theoretical concepts and professional development (Smith et al., 2014). However, in Albania this alignment is often limited, as a considerable proportion of students work in sectors that are not directly related to their field of study. According to Zëri.ai (2023), around 40% of graduates work outside their area of study. Nevertheless, even in such cases, work experience contributes to the development of general skills such as responsibility and discipline (Curtis & Shani, 2002).

One of the most significant benefits of work experience is the development of professional and personal competencies. The labor market increasingly demands skills such as communication, teamwork, problem-solving, and time management (Harvey, 2005). These skills are often developed more effectively in real work environments than in academic settings, making practical experience an essential component of professional education.

However, the impact of work experience on academic performance is complex and often bidirectional. Work experience may increase student motivation and improve understanding of academic content (Nonis & Hudson, 2010). On the other hand, excessive work engagement may negatively affect academic performance due to limited study time (Riggert et al., 2006). In Albania, this issue is particularly evident, as many students work for economic reasons, making the balance between work and study a significant challenge.

In this context, the integration of work experience into university curricula is considered one of the most effective ways to improve professional preparation. Work-based learning helps students develop practical competencies that cannot be fully achieved through theoretical learning alone (Boud & Solomon, 2001). In Albania, several initiatives have been introduced to improve this aspect, including programs and platforms aimed at connecting students with the labor market. However, these efforts remain limited and are not yet fully integrated into the higher education system.

In conclusion, the literature suggests that work experience plays an important role in students’ professional development by enhancing competencies, employability, and the connection between theory and practice (Jackson, 2015; Kolb, 1984). However, in Northern Albania, significant challenges still exist, including the lack of alignment between studies and work and the limited integration of practical experience into academic curricula.