A configurational study on the effect of the market and professional logic in the board of Dutch museums

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Almost everyone has pleasant associations with museums, but what if we lose these ‘valuable’ cultural institutions due to conflicting institutional logics? Institutions are related to many organizational matters. Institutional logics are imbedded in these institutions and therefore have an impact on the organizational state of affairs. Scott (2008) defines institutional logics as: a socially constructed set of materials, practices, assumptions, values, and believes that shape cognition and behavior”. Multiple logics are often present at organizations. However scientific literature is not clear about the effects of ‘hybridity’ or the lack of ‘hybridity’ on the business performance. This study focuses on this possible area of tension. In the museum sector, a shift becomes visible. The primary processes of museums are subject to change. Profitability is becoming increasingly important. The last couple of years it seems that museums experience difficulties with keeping their financial outcomes positive. With the declining governmental grants and having a hard time in finding investing companies, museums have difficulties achieving positive results. This study looks whether these ‘conflicting’ logics (the market and professional logic) are reflected in the heart of corporate governance, namely; the board and which configurations of logics lead to a ‘high’ and a ‘low’ income. It is therefore a configurational study on the effects of logics in the board of Dutch museums that gives an answer to the central question: Which configuration(s) of the market and professional logic present in the board of Dutch museums is/are the most effective in terms of income per employee? Within this study, it becomes clear that high performing museums that are located outside Amsterdam have a relatively large board. It seems that the configuration of logics has more effect for these museums than for high performing museums that are located in Amsterdam and have a relatively small board. For the low performing museums, it becomes clear that how the market and professional logic are represented in the board are of peripheral importance for the generated income per employee. Except when there is no separation of directors and the board is predominantly market oriented. When museums have a relatively small board and are located outside Amsterdam then it seems that a predominantly market oriented board leads to a ‘low income’.
Faculteit der Managementwetenschappen