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The impact of state governance structures on management and performance of public organizations: A study of higher education institutions

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  • Jack H. Knott

    (Institute of Government and Public Affairs, University of Illinois)

  • A. Abigail Payne

    (Department of Economics, McMaster University)

Abstract

Legislative statutes are passed by political majorities which support structures that insulate the implementing agency from its political opponents over time. Political actors also respond to different constituencies. Depending on the broad or narrow base of these constituencies, actors favor different kinds of governance structures. We apply this theoretical framework to the question of whether the state governance structures of boards of higher education affect the way university managers allocate resources, develop sources of revenue, and promote research and undergraduate education. Over the past two decades state governments have given considerable attention to state governance issues, resulting in many universities operating in a more regulated setting today. This paper develops a classification of higher education structures and shows the effects of differences in these structures on university management and performance using a data set that covers the period from 1987 to 1998. The analysis suggests that, for most of the measures, productivity and resources are higher at universities with a statewide board that is more decentralized and has fewer regulatory powers. © 2004 by the Association for Public Policy Analysis and Management.

Suggested Citation

  • Jack H. Knott & A. Abigail Payne, 2004. "The impact of state governance structures on management and performance of public organizations: A study of higher education institutions," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(1), pages 13-30.
    • Handle: RePEc:wly:jpamgt:v:23:y:2004:i:1:p:13-30
    DOI: 10.1002/pam.10176
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    References listed on IDEAS

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    1. McCubbins, Mathew D & Noll, Roger G & Weingast, Barry R, 1987. "Administrative Procedures as Instruments of Political Control," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 3(2), pages 243-277, Fall.
    2. Jack H. Knott & A Abigail Payne, 2001. "The Impact of State Governance Structures on Higher Education Resources and Research Activity," Public Economics 0111004, University Library of Munich, Germany.
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    Cited by:

    1. Scott Dallman & Anusha Nath & Filip Premik, 2021. "The Effect of Constitutional Provisions on Education Policy and Outcomes," Staff Report 623, Federal Reserve Bank of Minneapolis.
    2. Taylor K. Odle, 2022. "Free to Spend? Institutional Autonomy and Expenditures on Executive Compensation, Faculty Salaries, and Research Activities," Research in Higher Education, Springer;Association for Institutional Research, vol. 63(1), pages 1-32, February.
    3. Siddique, Hafiz Muhammad Abubakar & Shehzadi, Iram & Shaheen, Asma & Manzoor, 4Muhammad Rizwan, 2016. "The impact of governance and institutions on education and poverty alleviation: a panel study of SAARC economies," MPRA Paper 71248, University Library of Munich, Germany, revised 2016.
    4. Tommaso Agasisti & Ekaterina Shibanova, 2020. "Autonomy, Performance And Efficiency: An Empirical Analysis Of Russian Universities 2014-2018," HSE Working papers WP BRP 224/EC/2020, National Research University Higher School of Economics.
    5. Amanda Rutherford & Thomas Rabovsky, 2014. "Evaluating Impacts of Performance Funding Policies on Student Outcomes in Higher Education," The ANNALS of the American Academy of Political and Social Science, , vol. 655(1), pages 185-208, September.
    6. Richard M. Walker & George A. Boyne, 2006. "Public management reform and organizational performance: An empirical assessment of the U.K. Labour government's public service improvement strategy," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 25(2), pages 371-393.
    7. Robert C. Lowry, 2019. "The Effects of State Higher Education Policies and Institutions on Access by Economically Disadvantaged Students," Research in Higher Education, Springer;Association for Institutional Research, vol. 60(1), pages 44-63, February.
    8. Oleg Leshukov & Daria Platonova & Dmitry Semyonov, 2016. "The Efficiency of Regional Higher Education Systems and Competition in Russia," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 417-426.
    9. Amy Y. Li & Xiaodan Hu, 2025. "Goodbye Performance-Based Funding: Policy Abandonment of Performance Funding for Higher Education in the United States," Research in Higher Education, Springer;Association for Institutional Research, vol. 66(1), pages 1-25, February.
    10. Giliberto Capano & Andrea Pritoni, 2020. "Exploring the determinants of higher education performance in Western Europe: A qualitative comparative analysis," Regulation & Governance, John Wiley & Sons, vol. 14(4), pages 764-786, October.
    11. Sohvi Heaton & David Teece & Eugene Agronin, 2023. "Dynamic capabilities and governance: An empirical investigation of financial performance of the higher education sector," Strategic Management Journal, Wiley Blackwell, vol. 44(2), pages 520-548, February.

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