Management

The Impact of Credit Risk Management on Profitability of Commercial Bank

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Educational institutions are becoming increasingly important for regional and national
economies. Recent developments in Europe have drawn attention to the need for elite
institutions. After a long domestic debate, Germany appointed three of its universities to
Eliteunis in the fall of 2006. Similar discussions and initiatives have taken place in Finland
and Denmark. In 2007, the Swedish university chancellor, Anders Flodström, initiated a
public debate about improving the Swedish system of higher education by concentrating it to
fewer institutions of higher quality.
As a contribution to these discussions, it is of general interest to understand why and how
educational institutions become successful. The purpose of this study is therefore to
investigate what strategy and external factors that has made one particular institution –
Massachusetts Institute of Technology – successful.
The findings of the study show that MIT’s success depends on the possession of several
important strategic resources: faculty and student quality, endowment, reputation and campus
location. Thanks to these resources, in combination with some external factors, primarily the
influx of large amounts of federal research funding and the (entrepreneurial) success of MIT
alumni, the Institute has been able to attract: federal and private research funding, donations
and more high quality faculty and students. Faculty are motivated to excel through a welldevised
promotion and incentive system.

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Publisher

: ., 2012

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1-93

Language

English

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NONE

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