Does Decentralized Leadership Influence the Performance of Czech Museums?

This study tests whether decentralized leadership influences the efficiency of running selected cultural institutions, specifically museums in the Czech Republic. For the analysis, data from 2015 from 187 museums spread around the whole Czech Republic are used. The method for the evaluation of efficiency is data envelope analysis, and for identifying the influence of decentralized leadership, a regression analysis is used. Museums established by municipalities reach higher efficiency than museums established by regions and central government. The 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. The benefits of decentralization cannot be seen only in the field of finance but also in reinforcing local traditions, trust and the effects of social capital that is generated by a strong regional cultural identity.