Exploring the Determinants for Public Sector Innovation across National Borders. A holistic approach to the Interdependencies of the Factors for Public Sector Innovations and the national context.

Abstract

Purpose – The public sector makes an essential contribution to achieving the sustainability development goals (SDGs). At the same time, it faces increasingly complex challenges due to demographic change, climate crisis, and social exclusion. The welfare state is under pressure, and it is unlikely that the wicked problems of today and tomorrow can be solved with yesterday’s methods. The public sector needs innovation, but innovation in the public sector seems to be a wicked problem. In this study, we aim to explore the ecosystem of public sector innovation drivers to better understand the complexities and suggest ways to increase innovation success. A particular focus is on the role of a country's cultural dimension in the success and inhibiting factors of innovation in the public sector.

Design/methodology/approach – The research questions are analysed using content analysis, verbatim quotes, and regression analysis. Using a mixed-method approach, we obtain a qualitative and contextual understanding of the case study reports analysed, and a quantitative approach for further validation. The mix allows the research an iterative process where further research is conducted as new insights emerge.

Findings – The findings show that a) factors influencing public sector innovations can be a barrier for innovation or a condition for success, depending on context and availability, b) factors influencing public sector innovations can be generalized across borders, and c) that the six dimensions of a country’s culture developed by Hofstede can be used to some extent to explain innovation success.

Contribution to the field/value of research – This research fills gaps in the literature by exploring the interdependencies of factors influencing public sector innovations and arguing the generalizability of the factors across borders and boundaries. Another contribution is the conceptual framework offered, which takes a more interdisciplinary and holistic approach to the complexity of public sector innovation than has previously been the case in the literature. The framework incorporates the complexities of the public sector innovation ecosystem, making it more relevant to its efforts to address Sustainable Development Goals.

A novel PSI Factors Matrix is introduced based on the conceptual framework and the empirical analysis of the OECD OPSI case study library. The matrix shows how a country’s cultural dimensions influence public sector innovation efforts. Finally, a Roadmap guides how to use a country’s scores in the Hofstede 6D model to improve innovation efforts in the public sector.

Keywords Public Sector Innovation, Public Sector Governance, Hofstede, OECD OPSI case study library, Sustainable innovation, determinants of public sector innovations.