University As a Multifunctional Organization: A Comparative Case Analysis from Finland

In recent decades, universities have transformed from institutions focused primarily on education and research into entrepreneurial organizations with increasingly diverse missions, including scientific research, higher education and economic development. In this study, we apply social systems theory to analyze this entrepreneurial shift, conceptualizing universities as multifunctional organizations that strategically engage with various institutional logics in their internal decision-making processes.

Through a longitudinal qualitative case analysis of decision-making related to the establishment of two student entrepreneurship hubs in Finnish research universities, our findings reveal that these institutions navigate their multifunctionality by selectively engaging with, or deliberately avoiding, specific functions throughout their decision-making programs. This strategic management of multifunctionality allows the case universities to respond flexibly to rising external pressures without undermining their core educational and scientific missions.

A key insight from our study is the concept of "strategic undecidability"—the deliberate abstention from making definitive decisions when faced with external economic expectations. Rather than prioritizing economic objectives over educational and scientific ones, the universities we analyzed created internal flexibility, enabling them to become more responsive to external demands while maintaining their traditional roles.

In conclusion, we argue that universities can adopt entrepreneurial practices while preserving their core identities as institutions of higher education and research. The strategic use of non-decision-making, or the conscious suspension of certain decisions, plays a critical role in maintaining this delicate balance between competing organizational missions.