An institutional theory perspective on public sector reform and service performance reporting by New Zealand Universities

The paper examines new public management (NPM) reform in New Zealand Universities (NZUs) and the process by which government policy changes generated service performance reporting (SPR), and how the SPR practices were institutionalized. It seeks to explain the underlying institutional forces of the reform process, how universities were subjected to accountability pressures through government-imposed managerial techniques and how universities responded to them. We draw on the theoretical lens of neo-institutional theory and the concept of NPM to interpret the setting of SPR. Data comprises annual reports and other documents produced by the NZUs. The findings show that the development of the SPR was driven by NPM ideas and rationales of greater transparency and accountability. The institutional pressures bestowed extra power to the government by demanding greater accounting reporting of university performance. It also shows the ensemble of institutions, organizations, and management practices that were deployed to reorganize performance reporting practices. The study adds to the neo-institutional theory work that universities are experiencing extraordinary institutional pressure to become a market-type commodity in New Zealand and internationally. The findings have implications for government, universities, policymakers, and public sector professionals who work in public sector reform. Through the institutional theoretical lens, the study offers new insights into our understanding of NPM-driven regulation and institutionalization of managerial techniques. The insights inform policy and practice surrounding design, implementation, and the potential effect of future policy changes with reference to the performance of NZUs and internationally.