Universities, the State and the Market

This paper analyses changes in the governance of universities as a result of growing demands from society as well as of a strong penetration of management ideology into all kinds of institutions. For this purpose the paper uses a theoretical framework focusing on two governance mechanisms in social systems: entry control and performance control. These belong to a larger set of homogenising forces, which the new institutionalists label as (1) coercive, (2) normative and (3) mimetic. Using this theoretical framework to analyse the development of Swedish universities, the author concludes that their governance has undergone a considerable change. Coercive forces that were previously exercised through detailed budgeting have, in recent years, been operating through representation in leading bodies and through the selection of university leaders. This has occurred through a crowding out of normative forces. At the same time there have been strong mimetic forces based on modern management ideas.