Directing Corporate Entrepreneurship Strategy in the Public Sector to Public Value: Antecedents,Components, and Outcomes

ABSTRACT

Over the last three decades, organizations worldwide have used corporate entrepreneurship (CE) as a means of building new competencies, revitalizing operations, achieving renewal, and/or creating value for stakeholders. However, little is understood about factors triggering corporate entrepreneurship strategy (CES) within organizations not driven by profit motives. The purpose of this article is to conceptualize CES in the public sector in order to synthesize, integrate, and link the key concepts within the CE domain, thereby creating new public value and generating new economic activity for the benefit of multiple stakeholders. The public sector CES model includes (1) the antecedents of public sector CES (external environmental conditions that generate entrepreneurial activity); (2) the key components of CES (entrepreneurial strategic vision, organizational conditions that support entrepreneurial processes and behavior, entrepreneurial orientation (EO) that reflects the overall level of such processes and behavior, and individual levels of entrepreneurial behavior); and (3) outcomes of CES within the public sector (organizational outcomes resulting from entrepreneurial actions, including the development of venturing and renewal that, in turn, leads to enhanced public value). We discuss how our model contributes to the CE literature, followed by implications for scholars and practice and future research directions.     

Innovation and Implementation in the Public Sector: An Examination of Public Entrepreneurship

This article develops an empirical measure of public entrepreneurship and uses it to discover the correlates that distinguish between those participants in a policy domain who are seen as more or less important in the entrepreneurial process. Looking at two rural regions dealing with telemedicine technologies, the authors examine the role of personal attributes and situational attributes in predicting who will emerge as the most mentioned public entrepreneurs on these issues in their community. Status in the local community, membership in the health professions, and strong local focus and ties are the most instrumental variables in distinguishing between those in a policy domain who are more likely to be identified as entrepreneurial. The authors provide an empirical test that can, for the first time, identify in a comparative context the traits that distinguish more entrepreneurial individuals from less entrepreneurial ones (or nonentrepreneurial ones) participating in the same policy domain.     

Public Sector Corporate Governance Disclosures: An Examination of Annual Reporting Practices in Queensland

In the public sector, corporate governance is an expression that is yet to be explicitly defined. This paper examines the existing public sector literature in order to derive a set of broad principles of corporate governance in the public sector. These principles are then applied through a content analysis of corporate governance disclosures in a group of government‐owned corporations, state government departments, local governments and statutory bodies. The results indicate the set of principles derived is generally applicable to various forms of public entities. However, due to a lack of an established public sector corporate governance framework, the disclosure of corporate governance is piecemeal. Government‐owned corporations achieved better disclosure practices in most principles than other public sector bodies. The paper aims to stimulate debate on public sector corporate governance and provides a basis for a more extensive survey on corporate governance disclosures.     

The Use of Contracting in the Public Sector

Around the world and especially in English-speaking countries there has been a wave of contract-based public sector management following on the heels of a wave of corporatisation and privatisation.     

Innovation in the Public Sector

Why does the public sector innovate, how should the public sector innovate, and, even more basically, should the public sector innovate? These are some of the questions that these contributions explore and to which they provide some salutary answers. Martin Stewart‐Weeks, an independent consultant working at the intersection of government, innovation, and technology, draws some lessons from his direct experience and advisory work about how the public sector catches the innovation ‘bug’ and turns it into in‐ spired action. From infection to inspiration to implementation, the public sector needs to lower its defences and put itself ‘in harm's way’ to engage with innovators and new ideas. Tim Kastelle, one of Australia's leading innovation scholars and practitioners, sets out some practical ways that the public sector can extend and entrench its innovation practice. These include managing innovation as a process, shifting the risk equation, and experimenting.     

Japan: The Prospects for Public Sector Change

There have been some public sector changes in Japan, especially since 1981. The changes have contributed to the country's outstanding economic development. Recent events, however, question whether these changes have been sufficient and whether the sector is meeting the needs of Japanese society today.
Many of Japan's political, economic and social certainties disappeared in the 1990s including automatic economic growth and the 38 year reign of the conservative Liberal Democratic Party government. These developments and events such as the Kobe earthquake, the HIV blood contamination scandal and the collapse of financial institutions suggest that a more fundamental reform of the public sector is still required.     

Why Public Employees Rebel: Guerrilla Government in the Public Sector

Employee recalcitrance and employer reprisal are ever-present conditions in public service. Yet we have limited knowledge of the forces that move administrators away from acquiescence and toward antagonism. The authors follow the theoretical thrust of behavioral public administration to better understand administrative behavior by targeting the determinants of guerrilla government actions. They do so by presenting the results of a conjoint experiment embedded in a survey of federal bureaucrats. Findings show that decisions to pursue guerrilla activities are conditional on a multitude of factors—namely, the bureaucrat's personal views of the directive as a policy solution, the compatibility of the directive with the bureaucrat's ethical framework, the status of the person issuing the directive, and the probability that the directive might cause harm to others. Notably, these decisions generally are not affected by the probability of retribution or the expected type thereof. However, they are affected by the magnitude of harm that may ensue if orders are obeyed and not resisted.     

The Changing Nature of Public Entrepreneurship

This article proposes a cyclical theory of public entrepreneurship that is rooted in contextual conditions. The authors use material presented to the Institute of Public Administration of Canada for the annual innovation award, as well as an extensive literature review, to illustrate a new model for public entrepreneurship, arguing that today's public entrepreneurs are teams and their actions are systemic. Public entrepreneurs do not create new artifacts, nor do they design grandiose projects, but they slowly reinvent their organizations and, in so doing, transform the systems that control government effectiveness and efficiency. The authors generalize and contextualize the idea of public entrepreneurship and structure the emergence of entrepreneurs into a cycle theory. The individual entrepreneur dominates when the organization is new or there is a need for novel activities. As the organization matures and the need for efficiency takes over, dominant individual entrepreneurship disappears, and with time, a new systemic entrepreneurship arises to tackle them.     

The Future of Public Sector Pensions

The dramatic rise in life expectancy and longer retirement has created serious concerns about the long‐term affordability of public sector pensions. Drawing on insights from a recent inquiry into public sector pension reform, commissioned by the Conservative–Liberal Democrat Coalition and led by the author, this article outlines the challenge faced by policy makers and sets out how it should be addressed. It argues that, with 12 million people active in this part of the pensions system, and estimates that the gap between contributions and payments will grow from £3bn to £10bn in the next decade, the government has no choice but to enter the ‘lions’ den’ of pensions’ policy. It contends that any long‐term solution is to be crafted cannot be based solely on economics, but must also answer fundamental questions of ethics and equity.     

The Directions of Constitutional Change: Implications for the Public Sector

Constitutional change is in the air and this applies to the constitutional system, not just the documents that we call the Commonwealth and state constitutions in Australia. The causes of change are multitudinous but two warrant special mention: (a) natural or endemic change in the economy and society at large, and (b) political causes.     

The Queensland Public Sector: Recent Developments in Employment Relations

With the incumbent Labor government embracing a recentralisation of industrial relations, public sector agencies in Queensland are experiencing a dramatic shift in the framework of employment relations. This paper discusses the approach of the previous Coalition government to managing the public sector workforce and the emerging approach of the Labor government. The comparison of contrasting governmental approaches to public sector employment relations throughout the 1990s suggests that successive governments have balanced very differently the three main pressures they have faced: political, managerialist and industrial relations.     

Internationalisation of the Public Sector

This article argues a case for exporting government services in cases where the public sector has relevant expertise and can operate within acceptable risks. Drawing on Victorian experience, it suggests structures and procedures for effective operation in international markets.     

Performance Management in the Public Sector

There has been a great deal of work undertaken on employee performance management with the Australian Public Service (APS) over the last 4 years. The objective has been to focus upon achieving high performance rather than merely preventing poor performance. This refocus was adopted to reflect the increasing complexity of the work, a rise in the need for knowledge work, and escalations in the speed and frequency of change; all this within a context requiring a reduction in costs while still meeting the growing expectations of the public and government. This pair of papers reflects on where employee performance management has got to as a result of the work. Dr. Damian West from the Australian Public Service Commission identifies the continuing importance of effective employee performance management to the APS and public sectors more widely. He highlights the progress that has been made so far, demonstrating the importance of implementation of the process. He suggests that, now that a framework for assessing the potential for employee performance management processes has been established, accountability of the system implementation and adoption will become paramount. Professor Deborah Blackman, whilst echoing the real progress that has been made, suggests that for real improvement in performance management outcomes there needs to be a fundamental shift in thinking; not in terms of the processes or of ensuring compliance, but rather that organizations undertaking performance management need to be much clear as to the strategic direction such a process is going to support. She suggests that there has been too much emphasis on having a system and not enough on determining what such a system is for. When the papers are combined, it can be seen that much progress has been made in terms of the reorientation towards high performance and how to support organizations to work towards this. The next step, for there to be real outcome improvements, is for organizations to be more overt in determining what high performance will look like in their context, then clarifying that to all those involved in developing performance management so that accountabilities at all levels can be agreed, supported, and effective.     

Controlling Corruption in the Public Sector

Much of the literature on political corruption is based on indices such as the ones presented by Transparency International, but the reliability and validity of these indices are questionable. The main alternative approach – qualitative case studies – often lacks a theoretical framework allowing for systematic empirical analysis. To remedy this shortcoming, this article places qualitative case studies into the framework of principal-agent theory. The cases comprise two Swedish county councils (regional governments), both of which reorganised their administrations in similar ways in the 1990s. One experienced corruption scandals, but the other did not. In comparing them, the article links the propensity for corruption to institutional design – in particular, the mechanisms of delegation and control.     

Human Rights in the Public Sector

This article examines how universal human rights have been given practical effect in the UK through the Human Rights Act. It focusses on the role of human rights in public services and using the duty placed on public officials as a lever to bring about positive change.     

The Changing Face of Public Sector Employment

While it is easy, and almost a national sport, to criticise the traditional model of public sector employment as being too generous, there is a rationale for its distinctiveness. The career service model that endured for most of the last century was aligned to the bureaucratic form of public administration of that time. As public administration was 'transformed' into public sector management through the importing of private sector techniques, so too has public sector employment been varied in pursuit of greater efficiency, flexibility and responsiveness.     

Roberts: Public Entrepreneurship and Innovation

This article presents a conceptualframeworkofpublic entrepreneurship. Public entrepreneurship is defined as the generation ofa novel or innuuative idea and the design and implementation of the innovative idea into publicsector practice. The conceptualfiamework is used to distinguish between public entrepreneurs and other actors in the policy process, and to clarify the differences between policy, political, executive, and bureaucratic entrepreneurs. Taking a functionalist perspective, the article difmentintes between individual and coZkctiue entrepreneurship and ginezates pmpaitims to move us cher to a theory of public entrepreneurship.