Process of merger

The emergence of cooperation between the universities in Eastern Finland took place in business education (Nevala 2009, 434). The cooperation in business edu-cation between the Universities of Joensuu, Kuopio and Lappeenranta continued from 2001 until the merger of the University of Joensuu and the University of Kuopio in 2010. Lappeenranta University of Technology remained apart from the merger.

As Nevala (2009, 447) notes, the development of academic business education was emphasised in the Ministry of Education at the beginning of the 21^st century in Finland. The universities aimed to enhance technical and economic innova-tions and radiate innovainnova-tions to their regions. Business education started in the University of Joensuu and the University of Kuopio in 2001 as part of the network of universities in Eastern Finland. Business degrees however were awarded by Lappeenranta University of Technology.

The cooperation between the three universities in Eastern Finland was put to the test. The ultimate willingness and ability to cooperate and to coordinate the functions between the three universities will unfold in business education (Nevala 2009, 448).

Within a few years, as Nevala (2009, 448) continues, it was clear that the net-work-based governmental structure between the three universities was not func-tioning. The University of Joensuu and the University of Kuopio wanted to award business degrees independently themselves. Naturally, Lappeenranta University of Technology was against the procedure (Nevala 2009, 448).

The key moment for the merger between the University of Joensuu and the University of Kuopio was the announcements in the evaluation report by profes-sors Pertti Kettunen and Ilkka Virtanen in 2006. The business education of the

region was evaluated by the Ministry of Education. In the evaluation, it was sug-gested that the business education should be enlarged. Furthermore, the right to issue business degrees should be given to the University of Joensuu and the University of Kuopio (Nevala 2009, 448).

Simultaneously, there was another process occurring concerning the struc-tural development of the Finnish university institutes. Justice Niilo Jääskinen and Professor Jorma Rantanen were invited by the Ministry of Education to review the financial and administrative status of the universities and make proposals for a reform. The final report was published in January 2007 and contained a proposal for the amendment of the Universities Act in Finland. A timeline of the university reform process integrated with the merger process is illustrated in Figure 4.

Figure 4: Process of the merger: negotiations

An integral part of the structural development of the Finnish university institute was to create a federal university in Eastern Finland. This process was led by Professor Reijo Vihko. These three processes: a reform of the Finnish university structure (Jääskinen & Rantanen), evaluation of the networks of business educa-tion (Kettunen & Virtanen) and a project to create federal university in Eastern Finland (Reijo Vihko), were linked.

The proposal of the alliance between the two universities and the establish-ment of business education within this alliance was delivered to the Ministry

Idea of interorganizational cooperation discussed unofficially

PROCESS OF MERGER : Negotiations

2005 2006

1/2007 Final report of the Structural development of Finnish University Institute by Jääskinen & Rantanen

Sources: Nevala 2009; Annuall Reports of University of Joensuu;Interview with the Rector

12/2005

of Education in 2007. The Ministry of Education granted the permission to issue business degrees in common at the University of Joensuu and the University of Kuopio as part of the development of the University of Eastern Finland in 2007 (Nevala 2009, 448).

As Nevala (2009, 483, 487) stresses, it should not be interpreted that the forma-tion of the University of Eastern Finland originated solely from the process con-cerning business education. The transformation of the higher education policy in the 21^st century led to organisational changes within the two university organisa-tions in Eastern Finland.

The merger process was implemented bottom-up in over 20 working groups during 2006-2010 period. The emergent merger process progressed from strategic alliance to a federation and ended up into a merger. At the start in August 2006, the idea of cooperation was built around strategic alliance, where two autono-mous universities would collaborate in particular fields, such as business educa-tion. (Tirronen et al. 2016, 182-183)

To achieve international level research in Finnish universities is the leading idea of the current higher education policy, as Nevala (2009, 487-488) continues.

To achieve this goal, larger and competitive university organisations are needed.

The University of Joensuu and the University of Kuopio are feasible and comple-mentary partners. From the Joensuu University perspective, to be among the best 200 universities in the world will not be possible without research in medicine within the university organisation. On the other hand, from the perspective of the University of Kuopio, the strong fields in the University of Joensuu, such as natural sciences and forestry, would complement research in the ‘new’ organi-sation after the merger. Additionally, the University of Joensuu is efficient in its educational mission.

The formation of the University of Eastern Finland is also seen by Nevala (2009, 488) as a matter of a new generation within two university organisations.

The key position holders of the former organisations are to be replaced by young-er ones. The youngyoung-er genyoung-eration in the univyoung-ersity is used to coopyoung-erating and op-erating at a national and international level. The preconceptions are fading away and new options and possibilities are recognised in the ‘new’ organisation after the merger (Nevala 2009, 488).

The larger organisation and multi-campus university, was established with its 15,000 students and 2,800 employees and started operating in 1.1.2010. There are two main campuses in Joensuu and Kuopio, and a third campus in Savonlinna.

The faculties and educational fields of the University of Joensuu and the University of Kuopio before the merger are described in Figure 6 below (Vihko’s report 16.2.2007, 7). The process of commitment between the two universities is described in the timeline in Figure 5, as well.

Figure 5: Process of the merger: commitment