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Management innovations, also called organizational, administrative, and managerial innovations, are nontechnological innovations that have been conceptualized in contrast to technology-based product and process innovations and pertain to new organizational structures, administrative systems, and management practices. This paper provides a perspective on the state of research on this innovation type. It asks why research on management innovation lags that of technological innovation and compiles five footnotes, each addressing an important aspect of studying innovation in organizations, and, together, they explain conceptual ambiguity and methodological challenges that have hindered research on management innovation. The footnotes also highlight the opportunities that research on management innovation could provide for a better understanding of the influence of innovation on organizational conduct and outcome.

Contrary to certain previous assertions that the results of innovation research are inconsistent, a review of studies of the impact of organizational factors on the adoption of innovations along three dimensions (innovation type, innovation radicalness, and stages of adoption) suggests that, when categories within each dimension are distinguished, a considerable agreement in research results is evidenced. Based on an analysis of the interaction among these dimensions, the development of realistic theories of innovation adoption in organizations is possible if future studies: (a) systematically differentiate among the dimensions, (b) recognize differences between types of organizations with respect to innovation, and (c) consider the adoption of innovations within the larger concept of organizational effectiveness or performance.

Studies of the association between innovation characteristics and innovation adoption at the level of organization are scarce. This study develops direct and moderating hypotheses for the relationship between innovation characteristics, manager characteristics, and innovation adoption in public organizations. The hypotheses are tested using survey data on the adoption of 25 innovations in 725 local governments in the United States and data from a panel of experts. The findings suggest that both innovation characteristics and manager characteristics influence the adoption of innovation; however, they do not reveal significant moderating effects of manager characteristics on the relationship between innovation characteristics and innovation adoption. The implications of the findings are discussed for further research on innovation adoption in the public sector. Adapted from the source document.

Public choice theory (PCT) assumes that elected officials and public administrators act in their self-interest, not in the public interest. This article tests the theory regarding the effects of public governance on U.S. public pension plans, which are increasingly important socioeconomic institutions. The authors develop several PCT-based hypotheses regarding the dependent variable of plan funding, a measure of plan performance. Data sources include biennial PENDAT survey data for 1992-1996. The results indicate limited support for PCT. A positive relationship between the presence of boards of trustees and plan funding is found, but no relationship between citizen voting and plan funding.

Management innovations (MIs) are widely adopted, but their influences on organizational performance are little researched in public settings. Positing that the Ml-performance relationship is complex and is conditional over other characteristics of the organization, we examine the influence of Ml on organizational performance both directly and indirectly through performance management (PM). PM is an important organizational process characteristic arising from public management reform and in itself influences performance. We test our hypotheses using structural equation models with data from three sources in English local governments. The findings indicate that the impact of Ml on performance is not direct; it is mediated by PM. We also find that PM positively affects organizational performance. In conclusion, we discuss the implications of these findings for research and practice. Adapted from the source document.

AbstractOrganizations use multiple governance modes (make, buy, ally) to produce their services. We consider plural sourcing as a portfolio of governance mode choices that a public service organization selects to provide its services, and investigate environmental and organizational factors that stimulate plural sourcing of public services. While studies of governance mode have usually relied on insights from theories of organizational economics (transaction cost, public choice, agency), we rely on insights from theories of organization management (strategic adaptation, structural contingency, organizational capability) to construct a theoretical framework and develop propositions on the determinants of plural sourcing. Theory is tested by a four‐panel dataset we constructed by merging data from three different sources within 1992–2007. The results using multilevel (hierarchical) logit identify conditions under which organizations choose to externalize, internalize, or co‐produce their services. We discuss the implications of our findings for sourcing of organizational activities and suggest ideas for future research.Evidence for Practice

Plural sourcing is a governance form when an organization combines the three governance choices of make, buy, and ally in producing and delivering its products or services.
Environmental and organizational characteristics variably influence government organizations' choice of three service delivery modes – internalization, externalization, and cooperation.
Organizations tend to choose a service delivery governance mode that is prevalent among members of their organizational population.
The decision structure of organizations influences governance choice: when top decision‐makers are elected leaders, internalization tends to be preferred; when professional administrators decide, cooperation is favored; and when elected officials and professional administrators decide jointly, cooperation is more likely and internalization is less likely.
Choice of public service provision is driven by both economic factors (community wealth, financial resources, and fiscal pressure) and institutional factors (political leadership, trends in provision mode, and non‐fiscal pressure).

[EN] Management innovations (MIs) are widely adopted, but their influences on organizational performance are little researched in public settings. Positing that the MI-performance relationship is complex and is conditional over other characteristics of the organization, we examine the influence of MI on organizational performance both directly and indirectly through performance management (PM). PM is an important organizational process characteristic arising from public management reform and in itself influences performance. We test our hypotheses using structural equation models with data from three sources in English local governments. The findings indicate that the impact of MI on performance is not direct; it is mediated by PM. We also find that PM positively affects organizational performance. In conclusion, we discuss the implications of these findings for research and practice. ; Economic and Social Research Council (grants 331-24-0006 and 062-23-0039). ; Walker, RM.; Damanpour, F.; Devece Carañana, CA. (2011). Management Innovation and Organizational Performance: The Mediating Effect of Performance Management. Journal of Public Administration Research and Theory. 21(2):367-386. https://doi.org/10.1093/jopart/muq043 ; S ; 367 ; 386 ; 21 ; 2