Entrepreneurship in the Public Sector When Middle Managers Create Pu
Entrepreneurship is often considered one way for public sector organizations to better serve the public. But what are the drivers for entrepreneurship in such organizations? And does entrepreneurship really create value? To answer these questions, Fabian
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GABLER RESEARCH
Fabian E. Diefenbach
Entrepreneurship in the Public Sector When Middle Managers Create Public Value With a foreword by Prof. Dr. Peter Gomez
RESEARCH
Bibliographic information published by the Deutsche Nationalbibliothek The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available in the Internet at http://dnb.d-nb.de.
Dissertation University of St. Gallen (HSG), 2011
1st Edition 2011 All rights reserved © Gabler Verlag | Springer Fachmedien Wiesbaden GmbH 2011 Editorial Office: Stefanie Brich | Sabine Schöller Gabler Verlag is a brand of Springer Fachmedien. Springer Fachmedien is part of Springer Science+Business Media. www.gabler.de No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright holder. Registered and/or industrial names, trade names, trade descriptions etc. cited in this publication are part of the law for trade-mark protection and may not be used free in any form or by any means even if this is not specifically marked. Cover design: KünkelLopka Medienentwicklung, Heidelberg Printed on acid-free paper Printed in Germany ISBN 978-3-8349-3085-9
Foreword
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Foreword The public sector, with its wide range of organizations, plays a key role in our society. Whether or not these public sector organizations should foster entrepreneurial management in order to fulfill their legal mandate is an ongoing debate among scholars and practitioners. Advocates argue that entrepreneurial managers can create public value by analyzing public needs and by implementing creative ideas. On the other hand, opponents warn of a lack of democratic legitimization, the neglect of core responsibilities, and the danger of promoting self-interested rule-breaking managers. This debate is often characterized by dogmatic, normative arguments. Fabian Diefenbach approaches the debate on entrepreneurship in the public sector from a different, evidence-based angle. This work allows the reader to develop an understanding of entrepreneurship within organizations, what drives such entrepreneurship, and which consequences it may have. The basis is a thorough literature review that highlights shared and distinct elements of private and public sector entrepreneurship within organizations. In this review, Fabian Diefenbach pays special attention to middle management, doing justice to its crucial role in the entrepreneurship process. The research model he develops based on the review represents the essence of some 30 years of research in private and public sector entrepreneurship. Particularly notable is the integration of the new field of public value management. The study’s empirical part is based on a dedicated data set. The organization studied here, the German Bundesagentur für Arbeit (Federal Labor Agency), appears particularly suitable for this research: It is Euro
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