CHAPTER II LITERATURE REVIEW While a considerable amount of research has transpired during the last forty years regarding innovation among the private companies, there exists a substantial knowledge gap as regards innovation in the public sector, where there is only a limited amount of quality research on the subject (Mulgan & Albury, 2003)…
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This definition seems straightforward and lucid in its meaning, but it conceals the actual intricacy of this subject, as with majority of the definitions of innovation. It was observed that the innovation process is social, interactive, and extensive; numerous individuals with various resources, competencies, and capabilities have to come together in order to successfully innovate (Leadbeater, 2003). Forty years of studying innovation within the private sector and nearly twenty years of curiosity for the innovation within the public sector has demonstrated that innovation is a complex trend that comes out in the context of many interceding factors, and there exists no universal formula that can be implemented to guarantee its success (Borins, 2001). Why Innovate Within the Public Sector? At least potentially, common to all companies are political motives for innovation (Mintzberg, 1989). However, these political motives are, by nature, less acquiescent to analysis and rational planning. When taking into account the more strategic, economic motives, these are ostensibly more pertinent in the private sector than the public. Public companies are not likely to survive within markets where the level of competition is high. Compared to business, public companies generally exist within a more complicated social system, with values and objectives that are more vague and hard to put a figure on (March & Olsen, 1989; Lewis & Hartley, 2001, Denis, Hebert, Langley, Lozeau, & Trottier, 2002). There are also other restraints, including the desire or need to avoid “rocking the boat” for susceptible service users. On the whole, the risks are usually greater and the motivations to innovate are lower in the public sector than in the private sector. Innovation in the public sector may thus come to be regarded, at least in some situations, as an “additional burden or optional extra” (Mulgan & Albury, 2003). Then again, there are essential drivers and contentions in favor of innovating within the public sector. The image and reputation of local and national governments can be enhanced by exploiting innovation in three key approaches. First, currently and in the UK and USA (Moore, 2005) in particular, public companies are attacked on a regular basis for their efficiency levels and service quality. They may be critically compared to private institution working in the same subject areas. Second, administrations are eager to send off a public image that will attract private investments and increase global appeal. One example can be derived from the field of academic research. This impetus is also intensely apparent in the embracing of “e-government” strategies and/or ICTs by the government and other public companies (McLoughlin et al, 2004). Third, the government must call for votes, and/or be interested in the fulfillment of manifesto obligations or austerely, in marking their identity on the public sector as an outcome of elections or observed changes in public opinion. In a dynamic society, innovation is critical factor in the effectiveness of public service management (Hartley, 2005; Walker, 2004; Mulgan & Albury, 2
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19 Pages(4750 words)Literature review
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