Globally recognized sustainability assessment tools (SATs) for higher education institutions (HEIs) predominantly focus on performance outcomes rather than institutional readiness for sustainability transformation, thereby overlooking the unique challenges faced by HEIs in least developed countries (LDCs). This conceptual paper proposes theory based conceptual framework for assessing HEI readiness for SDG-oriented transformation in resource-constrained settings. The study conceptualizes sustainability readiness as an institution’s ability to identify, absorb, implement, and maintain SDG-oriented transformation, drawing on Institutional Theory, Resource-Based View and Organizational Readiness Theory. The paper introduces a novel Two-Step Assessment Approach for sustainability in HEIs, first assessing institutional readiness, followed by performance evaluation, specifically designed for LDC contexts. The proposed framework comprises of six interconnected dimensions: government preparedness, financial readiness, infrastructure readiness, academic and research readiness, socio-cultural readiness, and monitoring and reporting readiness. The framework contributes to advancing sustainability literature from outcome-based assessment toward readiness-based institutional transformation in HEIs across LDC contexts, particularly in South Asia and Sub-Saharan Africa. The paper further proposes theoretical propositions to guide future empirical validation and policy formulation.
