Entrepreneurship and knowledge spillovers from the public sector

A compelling body of research has found that investments in knowledge from other firms and universities spill over to enhance the performance of entrepreneurial firms. This literature has shown that firm performance is positively related to investments in new knowledge by other firms and research universities. This paper addresses a gap in the literature by positing that public sector knowledge is also conducive to enhancing performance by knowledge intensive entrepreneurial (KIE) firms. Our findings suggest that the public sector provides a fertile source of knowledge for enhancing KIE firm performance.

     

Human resource management in the public sector

This article charts the currents in public sector reform and examines how contemporary HRM articulates to the change agenda pursued in the public sector. It notes the differences between the traditional bureaucratic model and the new management approach of public sector operation and activity. It explores how the institutional, policy and organizational changes delivered a new paradigm of managing members of public service organizations.     

Property value maximization and public sector efficiency

This paper analyses the efficiency implications of property value maximization. Communities are open, so that utilities are parametric to housing producers and the local government. Each local government chooses its public good output to maximize aggregate property value in the community, ignoring feedback effects on the composition of the housing stock. It is shown that this type of government behavior generates an equilibrium in which all communities are internally Pareto-efficient.     

Individual entrepreneurial orientation and intrapreneurship in the public sector

International Entrepreneurship and Management Journal - Municipalities and Cities are facing a strong pressure to digitalize and develop themselves into Smart Cities. This article investigates the...     

Strategic human capital and the performance of public sector organizations

Organization scientists have long considered human capital as a strategic asset that contributes to organizational effectiveness. Whereas the strategic importance of human capital has been widely studied in the case of for-profit organizations, measurement difficulties and the role of human capital in the public sector have received little attention. The present study attempts to bridge this gap by suggesting a behavioral approach to measuring organization-specific human capital and examining its impact on the financial performance of local government authorities in Israel. The results confirm the strategic importance of human capital. Local government authorities that possess strategic human capital—namely, a workforce that is highly educated, that exhibits organization-specific competencies and experience, and that is valuable, unique, and imperfectly imitable—exhibited a better financial performance, as measured by a three-financial ratio scale over 2 fiscal years.     

Agency costs and the discount rate for public sector enterprises

In this paper, we examine the implications of agency costs on the discount rate for public sector enterprises (PSEs); we do this in the framework of the Capital Asset Pricing Model. With the addition of agency costs, the discount rate for Public Sector Enterprises (PSEs) under uncertainty becomes the risk-adjusted discount rate plus a premium for agency costs; under certainty, the discount rate for PSEs is shown to be the risk-free rate plus a premium for agency costs. Use of a discount rate by PSEs without adjusting for agency costs both under certainty and uncertainty, will lead to sub-optimal capital investment decisions by PSEs.     

A supply-demand model of public sector size

We develop a supply-demand model for the public sector with a political equilibrium. The model considers the inefficiencies caused by taxes and includes costs associated with the provision of public goods to consumers. We show that the size of the public sector may depend on the median voter's income, population size, costs associated with paying tax, and quality of institutions, all of which reflect the costs of provisioning public goods. The estimates for the Organisation for Economic Co-operation and Development member countries are compatible with theoretical predictions; however, they do not confirm Wagner's law, which holds that the public sector share does not grow with an increase in income. A greater dependency ratio and the Gini coefficient increase demand for redistribution policies. Greater government effectiveness is a supply-side factor that increases the public sector's share in an economy.     

Job factors and work outcomes of public sector expatriates

While the literature on private sector expatriates is burgeoning, research on public sector expatriates is scant, despite their increasing numbers. This is unfortunate, as these two groups of expatriates may face different work conditions at their foreign assignment. The target group for this study was the US Department of Defense administrators located at US embassies around the world. Results showed that the time expatriates had spent in their current location had a positive association with both work adjustment and work effectiveness. So did role clarity, which also had a positive association with job satisfaction, making it a more important job factor than role conflict, role overload or role discretion. Although role clarity may have a similar impact on work outcomes of expatriates, both in the private and public sector, the findings regarding role conflict and role overload may constitute a discrepant outcome for the two groups. There may also be a difference between the two categories of expatriates with regard to role discretion. Implications of these findings are discussed in detail.     

Measuring productivity in the public sector: some conceptual problems

In many sectors of the economy, governments either provide various services at no cost or at highly subsidized prices. Examples are the health, education and general government sectors. The paper analyzes three possible general methods to measure the price and quantity of nonmarket government outputs. If quantity information on nonmarket outputs is available, then the first two methods of price valuation rely on either purchaser based valuations or on cost based valuations. If little or no information on the quantity of nonmarket outputs produced is available, then the method recommended in the System of National Accounts 1993 must be used, where aggregate output growth is set equal to aggregate input growth. The paper also discusses various methods of adjusting for quality change.     

Efficient inequality: differential allocation in the local public sector

This paper examines the consequences for social efficiency if the locally provided public input can be differentially allocated among residents. We derive the distributional efficiency condition, which is the distribution of public inputs that maximizes within-city gains from trade. Differential allocation also causes modifications to the standard (Samuelsonian) allocative efficiency condition. Additionally, we explore the consequences of differential allocation for the median voter model. Standard empirical voter models are seriously flawed because they fail to distinguish final public output production from either individual demand or the distribution of publicly provided inputs. Finally, we derive the club sharing efficiency condition.     

A conceptual model of public sector corporate entrepreneurship

Entrepreneurship has been conceptualized as a process that can occur in organizations of all sizes and types (Burgelman, Academy of Management Review, 8, 32–47, 1983; Miller, Management Science, 29, 770–791, 1983; Gartner, Academy of Management Review, 10, 696–706, 1985; Kao, Entrepreneurship, creativity and organization, 1989). This paper develops a conceptual model of public sector corporate entrepreneurship. The proposed model is intended to depict the main antecedents that relate to corporate entrepreneurship within the public sector and the impact of corporate entrepreneurship on public sector organizational performance (growth, development and productivity), as well as factors influencing its continuous performance. Following discussion of the model’s contents, the potential value for researchers and those engaging in public sector corporate entrepreneurship are described.     

How economic integration affects the vertical structure of the public sector

This paper investigates the impact of economic integration on the vertical structure of the public sector within a country. To tackle this issue we set up a model of fiscal federalism, where economic integration is assumed to affect central government tax revenues. The main findings are that when an increase of the impact of economic integration brings about a reduction in central government tax revenues, under certain conditions: (a) it reduces central government expenditure; (b) it reduces general government expenditure; (c) it increases local taxation; (d) it increases the degree of public sector decentralization. Quite interestingly, these results are consistent with different patterns of local public spending and grants to local government.     

Efficiency wages,wage comparison,and public sector budgeting

We develop a government decision model where efficiency wage mechanisms affect the allocation of resources between different public services. We show how the introduction of interdepartment wage relativities modifies the standard Solow wage setting conditions. We compare the outcome under centralised and decentralised wage setting, and show that a decentralised wage setting system creates a distortion. Finally, we discuss the possibility of elimination this distortion using alternative financing systems.Final version: 08 April 2003JEL Classification: H23, J45We are grateful to Jan E. Askildsen, Daniel L. Rubinfeld, Agnar Sandmo, participants at conferences and seminars in Trondheim, Uppsala and Åsgårdstrand, and several anonymous referees for helpful comments. The second author is grateful to The Norwegian Research Council for financial support. The usual disclaimer applies.     

Demystifying the folklore of the accidental project manager in the public sector

Many individuals are called upon to undertake project management responsibilities with little or no preparation. Such project managers have been referred to as accidental project managers. This article examines the experiences of 46 accidental project managers within the Western Australian public sector through a questionnaire survey. Findings reveal that most project managers were selected based on their technical or managerial expertise and thus lacked the required competencies to deliver a project. There was a greater propensity for accidental project managers to act in a part‐time mode, undertake nontechnical projects, and be provided with limited training and education.     

Restructuring the public sector: examples from the Swedish School Administration Board

This research note begins with a discussion of recent changes in the Swedish labour market, with special reference to employment changes in the public sector from a gender perspective. These changes are illustrated with a discussion of results from a study of the closing of the National Board of School Administration, an agency with a high proportion of women on its staff. Changes are compared to observations made during the restructuring of the industrial sector. The research note concludes with a short discussion on employment trends for the future, with special reference to the importance of the public sector.