Governance and Management of German Universities
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Governance and Management of German Universities Dissertation Der Wirtschaftswissenschaftlichen Fakultät der Universität Augsburg zur Erlangung des Grades eines Doktors der Wirtschaftswissenschaften (Dr. rer. pol.) Vorgelegt von Sarah A.E. Stockinger (M.Sc. Organization Studies) Erstgutachter: Prof. Dr. Erik E. Lehmann Zweitgutachter: Prof. Dr. Susanne Warning Vorsitzender der mündlichen Prüfung: Prof. Dr. Robert Klein Tag der mündlichen Prüfung: 10.12.2018 ACKNOWLEDGMENTS First and foremost, I would like to thank my supervisor Erik E. Lehmann for his ideas, guidance and freedom, each at the proper time. For giving me the opportunity to grow as a researcher and person. My thanks are also granted to my second supervisor Susanne Warning for her always friendly ear as well as for valuable contributions and discussions. Last but for sure not least, I barely can express how grateful I am to my wonderful family and friends for their unconditional and precious companionship throughout one of my biggest challenges. Thank you. I Contents I Contents .................................................................................................................................. 3 II List of tables .......................................................................................................................... 5 III List of figures ...................................................................................................................... 7 IV List of attachments .............................................................................................................. 9 V List of abbreviations ........................................................................................................... 11 1 Role of universities and their governance in Germany .............................................. 12 2 History of German universities ..................................................................................... 17 2.1 Introduction to the relevance of the history of universities (until 1919) ............ 17 2.2 Where did the Emperor go? Collegial self-governance (1919-1933) .................. 25 2.3 Ideological governance (1933-1945) ....................................................................... 29 2.4 Occupation and decentral reconstruction of the university system (1945-1956)32 2.5 Centralized initiatives and planning euphoria (1956-1969) ................................. 37 2.6 Stimulation by legislation and reformation (1969-1982)...................................... 41 2.7 Post-experimental paralysis and introduction of competition thinking (1982- 1995) ................................................................................................................................... 45 2.8 New Public Management (1995-2005) ................................................................... 49 2.9 Differentiated university system – that should not be called this (2005-today) . 52 3 Determinants of Corporate Governance in higher education .................................... 57 3.1 Policies ...................................................................................................................... 58 3.1.1 The role of policy approaches ............................................................................ 58 3.1.2 Measurement of policy approaches .................................................................... 64 3.1.3 Measurement: Research quantity and quality for Picking the Winner policy approaches ........................................................................................................................ 67 3.2 Institutions ................................................................................................................ 71 3.2.1 Theoretical basis of Corporate Governance ....................................................... 71 3.2.2 The role of boards in higher education institutions ............................................ 80 3.2.3 Measurement: Critical issues ............................................................................. 84 3 3.3 Individuals ................................................................................................................ 86 3.3.1 The role of power and leadership in Corporate Governance ............................. 86 3.3.2 Born or Made: The role of leadership characteristics and style in leadership emergence and effectiveness ............................................................................................ 90 3.3.3 Measurement: The Big Five ............................................................................... 95 4 Governance and management in the German higher education system ................... 98 4.1 Systematization of the current governance system in Germany ......................... 98 4.2 Dataset description ................................................................................................ 104 4.3 Higher education policies in Germany: The German Excellence Initiative ..... 111 4.3.1 Literature on the Excellence Initiative as a Picking the Winner approach in Germany ......................................................................................................................... 111 4.3.2 Exploratory hypotheses .................................................................................... 113 4.3.3 Dataset and methodology: the Difference-in-Differences approach ................ 120 4.3.4 Results, robustness and interpretation .............................................................. 129 4.4 Corporate Governance of higher education in Germany: University boards . 138 4.4.1 Literature on university boards in Germany .................................................... 138 4.4.2 Difference hypotheses ...................................................................................... 146 4.4.3 Methodology and extension of the dataset: Specification of board variables .. 150 4.4.4 Descriptive results and interpretation ............................................................... 154 4.5 Leadership in German universities: Of presidents ............................................ 172 4.5.1 Literature on presidents in Germany ................................................................ 172 4.5.2 (Exploratory) Hypotheses ................................................................................ 174 4.5.3 Specification of leadership variables and methodology ................................... 182 4.5.4 Results, robustness and interpretation .............................................................. 188 5 Conclusion ..................................................................................................................... 199 VI References ........................................................................................................................ 202 VII Attachment ..................................................................................................................... 230 4 II List of tables Table 1: University foundations and backgrounds in Germany (own research). ..................... 20 Table 2: Number of German Nobel Prizes according to field. ................................................. 22 Table 3. Approaches of higher education policies by Civera et al. (2017, p. 29). ................... 59 Table 5: The Big Five. .............................................................................................................. 96 Table 6: General description of all variables. ........................................................................ 105 Table 7: Descriptives of the Excellence Initiative.................................................................. 127 Table 8: The effect of the Excellence Initiative on research quantity (all universities). ........ 131 Table 9: The effect of the Excellence Initiative on research quality (all universities). .......... 132 Table 10: The effect of the Excellence Initiative on research quantity (selected universities). ................................................................................................................................................ 133 Table 11: The effect of the Excellence Initiative on research quality (selected universities).134 Table 12: Overview on the federal state's designs of university boards in 2012. .................. 140 Table 13: Simplified overview on expected differences in composition and selection mode. ................................................................................................................................................ 147 Table 14: University board descriptives according to selection mode. .................................. 151 Table 15: Descriptives of universities with internal/external presidents. .............................. 152 Table 16: Simplification of contingency table. ...................................................................... 153 Table 17: Pearson Chi² and Fisher's exact test for business representatives and selection mode. ................................................................................................................................................ 163 Table 18: Pearson Chi² and Fisher's exact test for science representatives and selection mode. ................................................................................................................................................ 163 Table 19: Pearson Chi² and Fisher's exact test for society representatives and selection mode. ...............................................................................................................................................