Does Decentralized Leadership Influence the Performance of Czech Museums?

Abstract

Th is study tests whether decentralized leadership infl uences the effi ciency of running selected cultural institutions, specifi cally museums in the Czech Republic. For the analysis, data from 2015 from 187 museums spread around the whole Czech Republic are used. Th e method for the evaluation of effi ciency is data envelope analysis, and for identifying the infl uence of decentralized leadership, a regression analysis is used. Museums established by municipalities reach higher effi ciency than museums established by regions and central government. Th e causes may be found in the ability to better estimate the local demand as well as in the rational behavior of municipalities that prefer a cost-minimization strategy. Th e benefi ts of decentralization cannot be seen only in the fi eld of fi nance but also in reinforcing local traditions, trust and the eff ects of social capital that is generated by a strong regional cultural identity.