A new study from the Strategic Management Journal (SMJ) finds that the universities thriving in this environment are doing more with less simply by adopting more flexible budgeting. The problem is, many universities face internal and external pressures that inhibit financial flexibility. "Universities that reallocate resources more regularly are more likely to run larger budget surpluses," says Sohvi Heaton, a visiting assistant professor at Santa Clara University. "However, this is far more likely to be true at universities where external governance arrangements allow greater executive discretion."
