A Research Journal of South Asian Studies 49 South Asian Studies A Research Journal of South Asian Studies Vol. 33, No. 1, January – June 2018, pp.49 – 65 Reinventing Public Sector for Innovativeness and Performance: A Case Study of University of the Punjab, Lahore Sajida Nisar University of the Punjab, Lahore, Pakistan. Nasira Jabeen University of the Punjab, Lahore, Pakistan. Labiba Sheikh University of the Punjab, Lahore, Pakistan. ABSTRACT Today’s complex and competitive work environment has urged organizations both public and private for revisiting their practices, management styles and attitudes for improved performance. There is a great realization that when an organization adopts innovativeness, creativity and sate of the art practices in all of its dimensions, it becomes successful. Literature on this subject also reveals that public sector organizations universally suffer from bureaucratic behaviors, centralized systems and rigid practices and therefore, needs more of such innovativeness through reinventing their existing ways, behaviors and systems (Moghaddam et al., 2015, Osborne and Gaebler 1992). This study towards its attempt towards reinventing the public sector organization aims to access how organizational innovativeness impacts the performance using University of the Punjab as a case in point. The study sample consisted of 50 head of departments. The study used a modified instrument that measures both innovative orientation, which is based on the extensively tested Covin and Slevin (1989) scale and innovation management, which is based on Stevenson’s (1983) conceptualization of innovation as a set of opportunity-based management practices. Performance is multi-dimensional in nature; therefore, both financial and non-financial performance indicators have been used. Relationships between these constructs have been analyzed through PLS-SEM (Partial Least Square Structural Equation Modeling). The results demonstrate that a greater strategic orientation and better reward philosophy positively influence organizational performance and satisfaction. Limited evidence was found about the direct relationship between innovative orientation and financial performance. The results indicate that there is limited innovative orientation and innovation management in University of the Punjab which has theoretical and practical implications. The study offers recommendations for reinventing public sector through bringing in innovativeness, efficiency and agility towards improved organizational performance. Key Words: Innovative Orientation, Innovation Management, Organizational Performance, Reinventing, Public Sector, Efficiency Introduction Today’s complex and competitive work environment has urged for a change in the attitudes and management styles of individuals working in private and public
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A Research Journal of South Asian Studies
49
South Asian Studies A Research Journal of South Asian Studies Vol. 33, No. 1, January – June 2018, pp.49 – 65
Reinventing Public Sector for Innovativeness and
Performance: A Case Study of University of the
Punjab, Lahore
Sajida Nisar
University of the Punjab, Lahore, Pakistan.
Nasira Jabeen
University of the Punjab, Lahore, Pakistan.
Labiba Sheikh
University of the Punjab, Lahore, Pakistan.
ABSTRACT
Today’s complex and competitive work environment has urged organizations both public and
private for revisiting their practices, management styles and attitudes for improved performance.
There is a great realization that when an organization adopts innovativeness, creativity and sate
of the art practices in all of its dimensions, it becomes successful. Literature on this subject also
reveals that public sector organizations universally suffer from bureaucratic behaviors,
centralized systems and rigid practices and therefore, needs more of such innovativeness through
reinventing their existing ways, behaviors and systems (Moghaddam et al., 2015, Osborne and
Gaebler 1992). This study towards its attempt towards reinventing the public sector organization
aims to access how organizational innovativeness impacts the performance using University of
the Punjab as a case in point. The study sample consisted of 50 head of departments. The study
used a modified instrument that measures both innovative orientation, which is based on the
extensively tested Covin and Slevin (1989) scale and innovation management, which is based on
Stevenson’s (1983) conceptualization of innovation as a set of opportunity-based management
practices. Performance is multi-dimensional in nature; therefore, both financial and non-financial
performance indicators have been used. Relationships between these constructs have been
analyzed through PLS-SEM (Partial Least Square Structural Equation Modeling). The results
demonstrate that a greater strategic orientation and better reward philosophy positively influence
organizational performance and satisfaction. Limited evidence was found about the direct
relationship between innovative orientation and financial performance. The results indicate that
there is limited innovative orientation and innovation management in University of the Punjab
which has theoretical and practical implications. The study offers recommendations for
reinventing public sector through bringing in innovativeness, efficiency and agility towards
-0.223, t = 1.106), resource orientation (β = 0.235, t = 1.244), and innovative
orientation comprised of innovativeness (β = 0.135, t = 0.572), risk-taking (β = -
0.294, t = 1.022) and proactiveness (β = -0.029, t = 0.146), reward philosophy (β =
-0.184, t = 0.895) and strategic orientation (β = 0.316, t = 1.210) on organizational
financial performance is not significant.
Table 8: Path coefficients with t-values
Discussion
This study investigated the association between organizational innovativeness and
performance of University of the Punjab. Organizational innovativeness aids an
organization to flourish in the dynamic working environment. In their attempts to
respond to all the internal and external stakeholders, higher education institutions
need to adopt an innovative orientation and competitive approach to meet the
varying customers’ needs (Collis, 1999).
However, various departments working within University of the Punjab have
disagreement with innovative management structures and creative culture. For
organizational financial performance the five year trend indicates that there is a
change in the funding of departments working within University of the Punjab.
Results of PLS path modeling indicate that only strategic orientation and reward
philosophy contribute to the dependent variable performance satisfaction.
However, none of the independent variables significantly influence the dependent
variable, financial performance. The dimensions of organizational innovativeness
are ineffective within the context of university of the Punjab and do not contribute
to the financial performance, because being a public sector entity no consideration
to financial performance is given. Prevalence of traditional methods and
compliance to tried principles and practices prevent organizational innovativeness
and creativity by inhibiting innovative behaviors. This study highlights the need
for implementing innovative orientation within university setting to yield
Path
coefficients
t-values
Innovativeness 0.135 0.572
Pro-activeness -0.029 0.146
Risk-Taking 0.294 1.022
Strategic orientation 0.316 1.210
Resource orientation 0.234 1.244
Management structure -0.223 1.106
Reward philosophy -0.184 0.895
Entrepreneurial culture -0.151 0.862
Reinventing Public Sector for Innovativeness and Performance: A Case Study of
University of the Punjab, Lahore
A Research Journal of South Asian Studies
63
improved performance. With a new wave of change in society; characterized by
rapid technological advancement and rigorous competition, adoption and
implementation of entrepreneurial and creative culture can help the institution to
achieve its mission.
Limitations
As with every research enquiry, this study has some inherent limitations. This
study is being conducted within the context of University of the Punjab. Therefore,
results need to be validated within other contexts and wider population to enhance
the generalizability. The current research has employed the cross-sectional
research design that evaluates the relationship between independent and dependent
variables and no inferences can be made about causality.
Future Research Directions
This research has provided opportunity for furthering research in the field of
innovativeness, creativity and reform in public sector. The study used a single
respondent approach, future researches may focus on multiple respondents such as
employees working at various levels within an organization to provide input about
innovative orientation of the organization. Further research is also needed to
validate the relationship among the studied variables in other types of educational
institutions and also in other professions as well. Moreover, future researchers can
integrate other dependent variables such as employee performance and
satisfaction. Other variables that interact with organizational entrepreneurship and
business performance may be included as mediator or moderator variables to study
the innovativeness-performance relationship.
Recommendations
Based on the findings of this study, higher education institutions can enhance
organizational innovativeness in public sector universities through reinventing and
by promoting entrepreneurial and creative culture and principles. The results of the
study suggest that strategic orientation and innovation reward philosophy must be
promoted as these two contribute significantly to the organizational performance.
To move towards opportunity-based strategic orientation, focus should be shifted
from resources at hand to surrounding opportunities. Information must be gathered
about the past practices that have inhibited pursuing market opportunities and
specific patterns must be identified to improve internal systems that support
strategic orientation. Enhancing the reward philosophy requires that employees
must be rewarded using a combination of direct and indirect pay in form of
recognition, learning opportunities etc. Rewards must be linked to the performance
of the employees and public organizations need to go beyond tenure based
rewards. To successfully meet the demands of the stakeholders, higher education
Sajida Nisar, Nasira Jabeen & Labiba Sheikh
64 A Research Journal of South Asian Studies
institutions need to promote innovativeness and proactiveness. To ensure
successful execution of innovativeness, obstacles to organizational flexibility must
be identified, existing procedures must be revised and careful investment should
be made in human capital, since it is the responsibility of university faculty to
incorporate innovativeness in work routines. Training programs should be outlined
to develop innovative and risk-taking behaviors in university faculty.
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Bibliographical Note
Ms. Sajida Nisar is In-charge Director, Institute of Business Administration
University of the Punjab, Lahore, Pakistan.
Prof. Dr. Nasira Jabeen is Director, Institute of Administrative Sciences & Dean,
Faculty of Economics and Management Sciences University of the Punjab,
Lahore, Pakistan.
Ms. Labiba Sheikh is Assistant Professor at Institute of Business Administration,
University of the Punjab, Lahore, Pakistan. _______________________________