The Effects of Environmental Challenges and Centralisation on the Entrepreneurial Orientation and Performance of Public Sector Entities

The relevance of entrepreneurship in the public sector is considered. In investigating relationships a review of the literature is undertaken and a model is proposed to examine the effects of environmental challenges and centralization on entrepreneurship and ultimately, performance. Research is conducted among Australian public sector entities and an effective response rate of 27.4% is obtained. A structural equation model is used to examine the hypothesized linkages. Implications of the findings are discussed, limitations are noted and directions for future research outlined.