Strategic Dependence on External Funding in Finnish Higher Education

Universities are facing increasing external pressures to compete for external funding and to develop mixed economies comprising both state budget funding and external sources. This study aims to provide empirical and theoretical insights by utilising the Resource Dependence Theory and the Ecology of Games Metaphor to examine how Finnish universities articulate their goals for external funding in their institutional strategies. The findings indicate that universities' central strategic goals and interests in this specific domain of funding align with their aspirations for top-tier research university status and how to advance it. Rather than choosing between different funding streams, universities are adapting to the conditions of their funding environments. The strategies also reveal the presence of contradictory goals, where potential positive externalities serve as justifications for these contradictions. The strategies do not necessarily reveal unique or innovative choices made by the universities, but rather express their future institutional image as being more driven by external funding and research. These strategic goals can be seen as responses to critical dependence on academics and academic research, and as heuristic tools of the university management arena in navigating uncertain and dynamic university environments.