INNOVATION IN PUBLIC SECTOR ORGANIZATIONS

Abstract

Public sector organizations around the world see the development of new ideas and innovations as crucial and inevitable. This can be explained by fierce global competition and rapid technological development. Innovation is the successful application of ideas and processes to overcome existing problems and develop new opportunities. An in-depth literature review identified leadership behaviors, the impact of organizational climate and culture on innovation, and the barriers that need to be overcome to promote innovation in the public sector. The conceptual model shows the relationships between innovation and other critical concepts identified in the article. Various obstacles (e.g., cultural differences, conservative solutions, resistance to change, and inferiority culture) that need to be overcome to promote innovation in the public sector are presented. Although many researchers, especially in the public sector, have attempted to define innovation, it has been determined that there is no consensus on what innovation is. Furthermore, the leadership behaviors that foster a culture of innovation in the public sector remain unclear. Innovators tend to thrive in less dominant structures and systems, but public services have not been effective in learning from the best models. There are many obstacles that hinder a culture of innovation in the public sector, including: poor communication; lack of resources; top-down dictation; resistance to change, etc. A high level of managerial autonomy can help foster a more innovationoriented culture in these institutions. However, policymakers should be aware that rewarding and punishing high levels of HR autonomy may not be conducive to innovation because of its consequences.