Strategic renewal as a mediator of environmental effects on public sector performance

Strategic renewal as a mediator of environmental effects on public sector performance Building on research in the areas of strategy, innovation, and entrepreneurship within the private sector, strategic renewal as a form of entrepreneurship is examined within public sector organizations. An integrative model is proposed that captures the mediating effect of strategic renewal on the external environment–performance relationship within these organizations. Hypotheses are tested using hierarchical regression analysis with data from a sample of CEOs in 134 public sector state and semi-public enterprises in the Republic of Ireland. The findings indicate that environmental munificence is positively related to organizational performance. Strategic renewal further accentuates the impact of munificence on performance. Environmental hostility is also an exogenous driver of performance, but strategic renewal mediates the negative hostility–performance relationship. Decentralized decision-making and a flexible control system have a positive association with strategic renewal. Implications are drawn for theory and practice. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Strategic renewal as a mediator of environmental effects on public sector performance

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Publisher
Springer Journals
Copyright
Copyright © 2015 by Springer Science+Business Media New York
Subject
Economics / Management Science; Management/Business for Professionals; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1007/s11187-015-9639-z
Publisher site
See Article on Publisher Site

Abstract

Building on research in the areas of strategy, innovation, and entrepreneurship within the private sector, strategic renewal as a form of entrepreneurship is examined within public sector organizations. An integrative model is proposed that captures the mediating effect of strategic renewal on the external environment–performance relationship within these organizations. Hypotheses are tested using hierarchical regression analysis with data from a sample of CEOs in 134 public sector state and semi-public enterprises in the Republic of Ireland. The findings indicate that environmental munificence is positively related to organizational performance. Strategic renewal further accentuates the impact of munificence on performance. Environmental hostility is also an exogenous driver of performance, but strategic renewal mediates the negative hostility–performance relationship. Decentralized decision-making and a flexible control system have a positive association with strategic renewal. Implications are drawn for theory and practice.

Journal

Small Business EconomicsSpringer Journals

Published: Feb 13, 2015

References

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