Market Forces and Strategic Adaptation: The Influence of Private Scholarships on Planning in Urban School Systems

While the current debate about the effects of vouchers focuses on the effects of private schools on achievement, it is also important to examine how the introduction of need-based scholarships influences change in school systems. This study uses a qualitative method to examine the influence of a privately funded scholarship program on strategic adaptations within urban public and private schools in a major metropolitan area. The study revealed that senior administrators in public and private schools rapidly adapted their strategies to contend with the new program: suburban public schools prevented scholarship students from enrolling; urban public schools increased choices for public school students; and private schools actively recruited students. However, the scholarships had little influence on the ways these administrators viewed school choice.