Upper echelon, cluster development and performance : A study of governance and shared value strategy in Swedish institutions of higher education

Abstract:

Background: The "introduction of new public management" in institutions of higher education has brought a measurement-minded form of governance based on "doing more with less". At the same time, universities have increasingly become institutions where documentation proving the conformation to norms of society is more important than the actual outcomes of the organization. A more viable strategic mind set based on the core goals of higher education is therefore required in order to increase the congruence between stated goals and outcomes.

Purpose: The purpose of this thesis is to explore how the demographics in boards and top management teams in higher education affect performance through the mediating role of cluster development.

Method: This thesis has an abductive research approach as we emanate not only from previous theoretical discussions on public governance, upper echelon and cluster development, but also from a qualitative pilot study where we explore the cluster development concept in the university context. Our quantitative study is a cross-sectional study based on partly a survey sent to most directors and managers in higher education in Sweden, and partly independent data collection from financial reports and other sources.

Results and conclusion: The results are based on a small sample with few observations which imply that we cannot draw strong conclusions based on our statistical findings. We can however discern different indications of relationships between certain demographic diversity factors in boards and top management teams and certain aspects of cluster development. There are however mixed indications regarding the relationship between cluster development and university performance.