Effects of some environmental challenges and centralization 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 certain environmental variables and centralisation on entrepreneurship and ultimately, performance. The proposed model is based on work conducted by Covin and Slevin [1991], reconsidered within a public sector context. Research is conducted among Australian public sector entities. A structural equation model is used to examine the hypothesised linkages. Implications of the findings are discussed, limitations are noted and directions for future research are outlined.