CHANGE MANAGEMENT THROUGH ENTREPRENEURSHIP IN PUBLIC SECTOR ENTERPRISES

Abstract

Corporate entrepreneurship has been of interest to academics, business leaders and government officials over the past four decades, particularly in terms of enhancing organizational performance. Although the understanding of corporate entrepreneurship continues to develop, the research usually focuses on private sector business activity. The research to date has not provided a consensus on the nature of public sector corporate entrepreneurship. Even though in recent years the topic has appeared in the public administration literature with increasing frequency, public sector corporate entrepreneurship remains poorly defined and its interpretation fragmented. In this study, public sector corporate entrepreneurship is investigated by developing and testing an integrative model using data obtained from 134 public sector state and semi-state enterprises in Ireland. The results indicate public sector organizations can manage change through entrepreneurship when they adapt to a munificent environment and when the decision-making style and control system is aligned. Public sector organizations focusing on corporate entrepreneurship (renewal) are at least marginally positively associated with organizational performance (growth and development) a primary policy goal particularly in the current economic climate. The article concludes by discussing the implications for theory, practice and future research areas.