What Drives Entrepreneurial Orientation in the Public Sector? Evidence from Germany's Federal Labor Agency

Abstract

Along with the introduction of private sector management tools, public servants are expected to act more entrepreneurially-as public managers. However, research lacks quantitative evidence on what drives entrepreneurial orientation (EO) in this context. Our article examines the antecedents of department-level EO in public sector organizations. By integrating different research streams into one study, we combine partly opposing discourses. This deductive study develops and empirically tests hypotheses on antecedents identified from private sector corporate entrepreneurship literature and from the current debate on new public management and public value management. It uses data from 250 middle managers of Germany's Federal Labor Agency to do so. Contrary to expectations, the influence of management support, work discretion, and resources is only limited. Furthermore, a focus on key performance indicators and goal ambiguity does not seem to impede EO. Instead, a multitude of expectations, middle managers' localism, and position tenure have the greatest impact on department-level EO. As a result, this study provides insights into the strong role of antecedents outside of administration. The article concludes with a discussion of implications for both theory and practice.

Organizational factors, organizational culture, job satisfaction and entrepreneurial orientation in public administration

“…The term management support implies the extent to which an employee perceives and the ways in which the upper managers' countenance facilitates and boosts entrepreneurial behavior (Kuratko et al, 2014). When top management supports entrepreneurial behavior (such as innovative, proactive and risk-taking behavior), middle managers are more likely to behave in this way and vice versa (Meynhardt & Diefenbach, 2012).…”

“…Work discretion provides middle management with the opportunity to innovate and behave more entrepreneurially (Meynhardt & Diefenbach, 2012). …”

“…Moreover, empirical research detects a positive correlation between the appropriate use of rewards and corporate entrepreneurship (Wood et al, 2008). However, it is well known that entrepreneurial and innovative behaviour is often connected with risk-taking (Hornsby et al, 2002), while it was not being undertaken in cases of nonreward systems (Meynhardt & Diefenbach, 2012).…”

“…The importance of risk-taking EO dimension is obvious given the fact that the level of external and internal organizational uncertainty is growing on a day-to-day basis. However, in the public sector, it follows a political process which is subject to the public law and requires legitimacy (Meynhardt & Diefenbach, 2012).…”

Polissemias Do Empreendedorismo No Setor Público

“…Na presente pesquisa evidenciou-se sua manifestação através de uma cultura empreendedora dentro das organizações públicas (SADLER, 2000;KEARNEY, 2007;MOUSTAKIS, 2007;EYAL, 2008;MOUSTAKIS, 2010;MEYNHARDT;DIEFENBACH, 2012), nos movimentos sociais (KUHNERT, 2001;JAVELINE, 2003) e em parcerias público-privadas (KLEIN et al, 2010;KOHEN, 2007). Manifesta-se também através das políticas públicas, seja como fomento ao empreendedorismo no setor público como indicaram Young, Deve-se destacar que o tema empreendedorismo no setor público ainda se apresenta como uma área muito ampla dentro da administração, com diversas definições e poucos consensos entre os pesquisadores da área.…”