Page 1 of 20
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 6
June 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 108
Internal Organizational Dynamics Shaping Public Sector
Entrepreneurship in Tanzania
Kelvin Luka Nzilano
Moshi Co-operative University
kelvin.nzilano@mocu.ac.tz
Abstract
Public sector organisations are advised to
embrace entrepreneurship because it
stimulates not only efficiency and creativity
but also transforms public organisations into
more flexible units that serve the taxpayers
more effectively. The major thrust is not to
make public sector more businesslike, rather
to enhance opportunities, to take
challengeable ideas and innovate ways to
offer more public choice and benefits.
Despite its importance, public sector
entrepreneurship has been the subject of
little research. The few available studies are
limited to few countries such as United
States, UK, Australia, New Zealand and
Greece among others. Consequently, the
field lacks sufficient results which would
allow global generalisation and formation of
universally accepted best practices. In Sub- Saharan Africa and Tanzania in particular,
there are limited data on the internal
organisational dynamics that shape public
sector entrepreneurship. This paper fills this
gap by presenting the survey results
conducted in 2014 at the Moshi Co- operative University, using 120 respondents.
The study hypothesized that internal
organizational dynamics do not significantly
influence public sector entrepreneurship
development in Tanzania. Descriptive
statistics such as mean and standard
deviation were used to measure the average
response and difference between responses.
Hypotheses were tested using independent
sample t-tests and one way analysis of
variance (ANOVA). The principal findings
revealed that internal organisational
dynamics namely work discretion, rewards
and reinforcement and organizational
boundaries significantly influence public
sector entrepreneurship development.
Management support and resource
availability had insignificance influence in
public sector entrepreneurship. Irrespective
of sex, educational level and employment
category, respondents had the same
perceptions on the internal dynamics that
shape entrepreneurship. The study
recommends that the government should
create favorable environment for
entrepreneurial practices in order to enhance
public sector organisational capacity to
respond to the ever-changing environment
more promptly and effectively.
Key words: Internal organisational
dynamics, public sector, entrepreneurship,
Tanzania.
1.0 Introduction
Globalisation and the development of
science and technology have completely
changed the business world. Currently,
Page 2 of 20
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 6
June 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 109
people have faster access to information and
receive it almost as fast as it reaches leaders
(Tubey et al., 2015). Worldwide and
Tanzania in particular, public sector is
increasingly facing pressure due to rising
costs, demand from citizens and businesses,
demographic changes, globalization and
climate and environmental concerns (Bloch
and Bugge, 2012). We are living in an era of
niche markets where customers demand
high quality products and services and have
a variety of choices (Tubey et al., 2015).
Consequently, public sector operation
should base on adaptability, flexibility,
speed, aggressiveness and innovativeness,
all described under ‘corporate
entrepreneurship’ (Morris and Kuratko,
2002). Entrepreneurship in public sector
stimulates not only efficiency and creativity
but also transforms public organizations into
more flexible units that serve the taxpayers
more effectively (Meynhardt and
Diefenbach, 2012). Public sector
entrepreneurship (PSE) is the process that
exists within public sector organizations
leading to innovative activities such as
development of new and existing services,
technologies, administrative techniques, and
new improved strategies, risk-taking and
proactivity (Kearney et al., 2009).
Essentially, PSE embraces the participation
of employees and the conscious effort to
instill entrepreneurial practices within
organizations in order to enhance firms’
ability to produce new products and services
(Morris & Kuratko, 2002). This is an
entrepreneurial behaviour exhibited fairly by
the whole organization as it involves actors
inside public sector organization (Morris,
2007).
Traditionally, entrepreneurship within
existing organization ‘corporate
entrepreneurship’ has been associated with
private sector as a source of organizational
survival and growth through increased sales,
market share, profitability and growth
potential (Kearney et al., 2009). However,
entrepreneurship holds potential to exist in
virtually all types of organizations (Zerbinati
& Suitaris, 2005). Currently, public sector
organizations experience turbulent external
environment with eroding tax bases,
heightened accountability, rapidly changing
technology and increasing diverse audiences
to serve (Bloch and Bugge, 2012). In
Tanzania, as in many developing economies,
public sector organizations depend on the
central government to finance their
operations. However, recent trend reveals a
Page 3 of 20
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 6
June 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 110
falling central government subvention,
which endangers public service delivery.
These challenges call for entrepreneurial
behaviour within public sector
organizations. The adoption of PSE could be
a sound approach that generates alternative
revenues, improves alternative processes,
and develops innovative solutions to meet
social and economic needs (Fox, 2015).
Indeed, entrepreneurship in public sector is a
driving force of change and innovation that
opens-up innovative opportunities to achieve
efficient and effective performance (Kim,
2010).
Despite its importance, PSE has been the
subject of little research (Meynhardt and
Diefenbach, 2012). Current research has not
identified factors or practices that motivate
entrepreneurial behaviour in public sector
(Zerbinati & Suitaris, 2005). Existing
literature focus on industrial and business
corporations and little has studied the
application of entrepreneurship in other
context (Yeazdanshenas, 2014). Previous
studies are limited to few countries such as
United States, UK, Australia, New Zealand,
and Greece among others. Consequently, the
field lacks sufficient results for global
generalization and formation of universally
accepted best practices (Zampetakis &
Moustakis, 2010). Moreover, existing
analysis is confined to top management,
contrary, research suggest the importance of
entrepreneurial process to all employees
(Borins, 2002). Literature has been less clear
on which specific organisational
components influence entrepreneurship
inside organisation (Strydom, 2013). Given
the potential benefits of PSE, identifying
internal organizational dynamics that shape
entrepreneurship in public sector
organisations is very important. Previous
research has analysed psychological and
behavioral characteristics of individuals
which are insufficient to understand the very
heart of PSE (Kim, 2010). So far, there is no
agreement on which key internal
organisational dynamics are more important
in facilitating the development of
entrepreneurship inside organisation
(Hornsby et al., 2002). Indeed, this creates a
challenge for public sector managers when
attempting to promote entrepreneurial spirit
in public sector context.
In Africa and Tanzania in particular, the
environment for entrepreneurship
development particularly in public sector are
relatively not attractive. This is partly
