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Methodological framework and empirical analysis on entrepreneurship and innovation in the public sector

Karyotakis Konstantinos

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Summary

The main purpose of the present doctoral thesis is the development of a methodological framework for entrepreneurship and innovation in the public sector, by means of the review of the existing literature and the empirical analysis of primary data.A public organization requires innovation to the same extent than any private sector organization, and possibly even more. An institution that wants to be able to innovate, succeed and prosper in an era of rapid changes, must adopt policies that will create a desire for innovation throughout the organization.There is a need to change the culture of obsolete bureaucratic processes in the public sector in order to increase flexibility and innovation. In parallel, there is a desire to maintain the practices and processes that are necessary to ensure the quality of the services to the citizen.Organizational culture can stimulate creativity and shape an environment that encourages new ideas. If an organization has a risk-taking and rational approach that rewards experimentation, then it has a good chance of introducing a successful innovation.Innovation should be treated as a journey and not as a linear process, within the public sector, where the learning procedure consists a very important segment of this journey, through experimentation, either successful or failed. Innovations, in the public sector, are usually related to the provision of public services and changes in links between different parties and political processes. Effective relationships and bonds between innovative and end users/ consumers are the key points for successful innovation in this area. It is very important for the public sector to learn how to manage the innovation process, thus increasing the efficiency and effectiveness of the services provided.Innovation should be an integral part of both the organizational behavior and attitude of each institution, as well as its strategic plans and leadership. It is very important that the appropriate mentality and readiness to change are cultivated and matured throughout the organization, so that they do not constitute the behavior and culture just of some individual members of the organization.This enables the human resources to acquire the structures, values and learning abilities that will be the starting point for adopting such an organizational way of life. Thus, innovation will not be an isolated or incidental, perhaps, event but an everyday attitude and behavior of continuous learning and effort towards this direction.The present thesis focuses on the Entrepreneurial Orientation (EO) of an organization, because EO can effectively solve important problems in the public sector, by further adding value to employees, processes and to end results. Of course, it should be noted that the EO in this research is being examined in light of added value and not from the point of view of the economic benefit.The EO is linked to the development of innovation while it is examined which individual factors of an organization's executives and which factors of the organizational environment favor the emergence of this behavior. The whole procedure takes place through the mediators of Organizational Learning and Job Satisfaction (auxiliary variables) and under the moderating effect of Resource Availability (interpolated factor/ modifier) in the relationships among the miscellaneous variables. Τhe contribution of the present thesis is that it attempts to integrate the above-mentioned concepts under the scope of a unified model.In the context of this thesis, a random sample of 1,707 civil servants responded to an appropriate research tool in the form of a questionnaire, which was constructed specifically for this research. These civil servants came from the former General Secretariat for Public Revenue (GGDE) from services across the country.Subsequently, the data were processed and analyzed through the IBM SPSS (Statistical Package for Social Science), version 23.0.0.0, the LISREL (LInear Structural RELation), version 8.71, as well as the analytics and graphics software package SYSTAT, version 13.00.05.During the phase of the analysis of the results, emphasis was given, among other things, on the creation of a Structural Equation Modeling, from which useful conclusions were drawn, regarding the variables that affect an organizational EO and the direction that these variables take.The outcomes of the thesis present a particular interest in the strategic reorganization of the Greek public sector, in the direction of promoting entrepreneurial and innovative behavior, by developing ways (e.g. programs and strategies) of training of public executives. The latter should be encouraged to adopt innovative and entrepreneurial behavior and attitudes by identifying and resolving creatively and effectively the obstacles arising during their work.In conclusion, a more efficient and effective system of public administration might be designed by adopting a more organizational EO in the public sector. EO and innovative behavior can and should thrive in the public sector and this should be emphasized. Indeed, EO is an absolute necessity in the modern and constantly changing environment, in which the public organizations are called not only to survive but also to prosper.Keywords: Structural Equation Modeling; Public sector; Change management; Entrepreneurial Orientation; Entrepreneur; Entrepreneurial behavior; Corporate Entrepreneurship; Entrepreneurship; Innovation; Organizational culture; Internal work environment; Employee’s perception; Individual characteristics; Organizational characteristics; Learning Orientation; Learning organization; Job satisfaction; Survey instrument

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