ABSTRACT
A lack of common agreement exists around innovation in bureaucratic organisations, which results in stifling the growth and implementation of public sector innovation. In this regard, practitioners and scholars appear to be at cross purposes concerning public sector innovation research. The literature on both market and public sector innovation reveals that, in any organisation, an innovative culture must be championed and sustained by those in positions of power. Therefore, a significant challenge for practitioners is to develop systems, processes and environments for advancing and demonstrating innovation and creativity. In this sense, it is vital to develop a supportive climate so as to enhance employees’ innovative behaviour and creativity. A great deal of public sector research addresses why the public sector needs to transform and the changes that must be made; however, little is understood about encouraging whole systems to develop a greater capacity for innovation. Public organisations are faced with continual pressures to produce increased value for their communities. Given the complexity of innovation, particularly within government, public services must engage with the concept, and those leadership behaviours and styles are developed to manage and promote innovation in the public sector.
Mindful of the literature oversights, this chapter provides a critical review of the academic literature focusing on innovation and leadership in public sector organisations. From this, three propositions are generated and conclusions are drawn. These are regarding what is required going forward and what constraints organisational and environmental factors impact on promoting and developing a culture of innovation in the public sector. In turn, a conceptual framework is presented based on an analysis of the extant literature that outlines practicable and essential factors for fostering and growing a culture of innovation in the public sector. Despite being descriptive and non-statistical, such an analysis assists both scholars and practitioners in identifying the issues necessary for understanding and promoting a culture of innovation in public sector organisations.
