Autonomy-driven segmentation for competition among Finnish universities: leaders’ perceptions

Abstract

ABSTRACT The Finnish financial autonomy reform pushed university leaders and academics to a juncture where they must navigate through increasing competition dynamics. Enabling the two types of organisational players – foundation-run universities and universities under public law – to become more autonomous and competitive was the major element of autonomy reform. Leaders were interviewed in both types of universities to shed light on their motives for financial autonomy and strategies for dealing with simultaneous resource dependence. From the leaders’ perspective, their motivations for financial autonomy were legitimised player status, power and financial benefits. The findings suggest that the two categories of players feed unprecedented horizontal segmentation for competition among Finnish universities. Foundation universities apply prestige-maximising strategies, while public universities aim to guarantee their status as regional or national education and research producers on which society depends. The most recent adaptive strategy is an institutional merger between both types of universities.