Over the last 30 years, educational policies and governance at national levels in Europe have been increasingly influenced by global trends such as neoliberalism and New Public Management (Ball, 2017; Moos, 2017). This shift has led to decentralization of educational systems, introducing accountability systems and marketization. This has influenced governance structures within countries and heightened the educational responsibilities at local levels, particularly at district or municipal levels, necessitating a focus on leadership practices (Fullan & Quinn, 2016).

Research has drawn to attention the significant role of effective local-level leadership in contributing to professional development and student learning at the school level (Leithwood & McCullough, 2021; Louis, 2015). It is suggested that this leadership should adopt a proactive, distributed, and shared approach, centring on supporting principals and schools to enhance student learning and professional competence (Louis et al., 2010; Hargreaves & Shirley, 2020). Research by Leithwood et al. (2008, 2020) and Louis et al. (2010) indicates that municipal leaders must set directions, develop people, and refine organizational structures. The effectiveness of such leadership is often linked to its ability to foster a supportive environment for principals and teachers (Louis et al., 2010). Conversely, a lack of leadership capacity and understanding at the municipal level has been associated with challenges in sustaining improvements at the school level (Lambert et al., 2016; Louis et al., 2010).

In the context of global decentralization trends, Iceland’s transfer of compulsory schooling from state to municipal control in 1996 presents a unique case. This shift resulted in municipalities undertaking new responsibilities, such as setting educational policies and providing school support services, often without substantial state-level guidance (Sigurðardóttir et al., 2020). It has been documented that these changes significantly transformed the roles of municipal councils, school governing boards, and principals (Ásmundsson et al., 2008; Hansen & Lárusdóttir, 2018; Hansen & Jóhannsson, 2010). While the broader impacts of such decentralization shifts and the changing role of the local level have been documented in various European and global contexts (Moos et al., 2016; Leithwood & McCullough, 2021), the specific ramifications for Iceland remained less explored, especially in terms of leadership.

This paper seeks to understand how municipalities in Iceland have navigated their educational leadership responsibilities post-decentralization. The primary research question it addresses is: What implications has the decentralization of Iceland's educational system had for municipal educational leadership? Furthermore, what are the features of this leadership and its implication for school practice?

The methodological framework of the study this paper builds on is grounded in social constructionist epistemology, viewing knowledge as constructed through social processes. The research employs an embedded single-case study design, with municipal educational leadership in Iceland as the central case. This approach allows for an in-depth exploration of the specific nuances and complexities of the subject matter within its real-life context. The case study is broken into four research themes or units of analysis, each with sub-questions that feed into the research question in different ways. It applies mixed methods to provide a rich and holistic understanding of the topic. Each method was applied in alignment with the corresponding unit of analysis, providing a layered and comprehensive understanding of the subject. Units 1 and 2 constructed a basic knowledge of educational governance and the policy environment at the municipal level and helped to situate municipal educational leadership within the Icelandic context. In Unit 1, document analysis was applied (Sigurðardóttir et al., 2020), and in Unit 2, content analysis on educational legislation (Sigurðardóttir et al., 2018). In Unit 3, a closer look was taken at the municipal level leadership nationwide, based on survey responses from both municipal and school leaders (Sigurðardóttir et al., 2022). In Unit 4, an attempt was made to deeply understand this leadership by examining seven municipalities in more detail (Sigurðardóttir, 2023). This was done by interviewing superintendents and department heads at school offices and principals and examining the municipalities' websites and policy documents concerning school support services. This paper is based on findings from all the units. The varied data collection ensures a holistic understanding of the topic, capturing the nuances of the changes and characteristics in educational leadership at the municipal level.

The findings reveal a significant reshaping of leadership practices at the municipal level in Iceland following the decentralization of compulsory schooling. The study identifies a lack of strategic planning and policy guidance at national and municipal levels, leading to an overdependence on individual leaders' capabilities. This situation has resulted in fragmented educational leadership, impacting the ability of schools to function as professional institutions and provide inclusive education. The research underscores the need for a structured and strategic approach to leadership at the municipal level. It highlights the importance of coherent policy and governance structures that support and guide educational leaders. The findings suggest that strengthening leadership capacity, particularly in remote municipalities, is crucial for improving the quality of education and ensuring equity across the educational system. The study contributes to the discourse on educational leadership and governance in Iceland and globally. It provides valuable insights into how local adaptations to global educational trends can influence the effectiveness of educational systems and local leadership practices. The Icelandic case offers a unique perspective on the challenges and opportunities of developing local educational leadership while decentralizing educational governance, providing lessons for other countries navigating similar reforms.

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