The effect of stakeholder inclusion on public sector project innovation
| Published date | 01 March 2018 |
| Date | 01 March 2018 |
| Author | Sebastian Godenhjelm,Jan-Erik Johanson |
| DOI | 10.1177/0020852315620291 |
| Subject Matter | Articles |
International Review of
Administrative Sciences
2018, Vol. 84(1) 42–62
!The Author(s) 2016
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DOI: 10.1177/0020852315620291
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International
Review of
Administrative
Sciences
Article
The effect of stakeholder inclusion
on public sector project innovation
Sebastian Godenhjelm
University of Helsinki, Finland
Jan-Erik Johanson
University of Tampere, Finland
Abstract
The delivery of public services in collaborative agency networks has given rise to an
increasing use of projects in administering policy and service delivery. Projects are
assumed to provide mechanisms by which flexibility can be achieved and innovative
solutions produced. The aim of the article is to advance the understanding of collab-
oration between stakeholders and its effect on innovation. It analyses stakeholders’
influence on the creation of project innovations in 275 European Union-funded projects
by using content analyses and logistic regression analyses. The results show that
projects can act as hubs where valuable information is produced but that few projects
produce innovations. Project stakeholder network, knowledge dissemination and pro-
ject influence, as well as sources of advice, play a role in predicting project innovations.
The article concludes that the overly optimistic view of collaboration as a remedy for a
lack of innovation in the public sector can be questioned.
Points for practitioners
The results of the article help practitioners to compose public sector development
projects that foster innovation. The results suggest that it pays to include representa-
tives of research and education facilities among project staff as their inclusion predicts
the possibilities of achieving innovations. The empirical findings provide insight into
project innovation and indicate which practices to avoid. It is suggested that when
managed correctly, stakeholder inclusion has an effect on public sector project
innovation.
Keywords
citizen participation, implementation, networks, partnerships, public administration,
public management, regional and local government, service delivery
Corresponding author:
Sebastian Godenhjelm, Swedish School of Social Science, University of Helsinki, PB 16, 00014, Finland.
Email: sebastian.godenhjelm@helsinki.fi
Introduction
Innovation represents the core of renewal processes in organizations and is
regarded as the key driver in organizational success, as well as a solution to welfare
problems (McCann and Ortega-Argiles, 2013). However, innovation in governance
is ambiguous and requires an institutional environment that fosters learning and
knowledge sharing (Hartley, 2005). A common notion is that knowledge is created
when heterogeneous organizations or actors meet, create partnerships and share
ideas. Thus, some see creative problem solving and collaboration as the cure for the
alleged innovation deficit within the public sector (Bommert, 2010; Borins, 2014).
Consequently, many public management reforms and programmes identify innov-
ation as their primary goal (Considine and Lewis, 2007).
European regional development strategies rely on the innovative capacities of
networks and projects (Ansell, 2000). Projects are deemed well suited to the
development of innovation (Brady and Hobday, 2011). Despite the optimistic
assumptions, there is a lack of studies that clarify the drivers of and barriers to
collaborative innovation (Sørensen and Torfing, 2011). Studies point to the increas-
ing need for facilitating interorganizational structures and collaboration, as well as
strategies to integrate multiple stakeholders into common projects (Briere and
Proulx, 2013; Klijn, 2008; Michels, 2011). Evidence of the effect of collaborative
governance is, however, inconclusive (Ansell, 2012).
Few examples of the systematic use of collaborative interaction that would help
the public sector to create opportunities for collaborative innovations exist
(Sørensen and Torfing, 2012). The project management literature tends to empha-
size the positive view of collaboration, but it is evident that networking also bears
cost in terms of time and energy involved in action (Burt, 1992; Nan, 2001). There
is an increasing need to understand the prospects for collective and multilateral
action in order to evaluate the possible gains of collaborative interaction.
The aim of this article is to identify beneficial social partners and to define useful
actions intended to achieve innovation in European Union (EU)-funded projects.
The overarching research question is to what extent are collaborations a prerequis-
ite for innovation and what are the beneficial collaborative procedures and actions?
The article is structured as follows. It begins by discussing how projects relate
to the interactive governance debate and the public policy service delivery pro-
cess. It goes on to discuss the concept of innovation and its drivers, and estab-
lishes a link between the collaborative governance debate and the possible
determinants of innovation. It then describes the research setting and methods,
presents the analysis, and ends with a concluding discussion and suggestions for
future research.
Innovation through public sector collaboration
The degree to which the public sector can interact flexibly with private and other
non-governmental actors is a key component of its innovation capacity.
Godenhjelm and Johanson 43
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