Innovation in Educational Markets: An Organizational Analysis of Private Schools in Toronto

Abstract

This study examines whether new private schools are innovative, drawing on theories of markets and institutions. Choice advocates claim that markets spark innovation, while institutional theory suggests that isomorphic forces will limit novel school forms. Using qualitative data from third sector private schools in Toronto, three hypotheses about the impact of markets an educa- tional organizations are examined: (a) they reverse tendencies toward iso- morphism as schools develop client niches; (b) they allow schools to weaken their formal structures; and (c) they force schools to more closely monitor their effectiveness. Substantial evidence exists for the first hypothesis, partial evidence for the second hypothesis, but little evidence for the third. Overall, new private schools are characterized by; small classes, unique pedagogical themes, personalized treatment of clients, and some pragmatic responses to limited resources. Their operators sometimes feel restricted by parental demand, but are able to retain a loosely coupled structure by embracing con- sumerist understandings of accountability. This essay concludes with a dis- cussion of implications for market theory.