Towards an evidence-based consensus on the impact of public sector entrepreneurship on public administration

Public sector entrepreneurship (PSE) has faced some resistance since it was first introduced several decades ago. Scholars have argued that the free-spirited nature of entrepreneurship could threaten the democratic and legal foundations underpinning modern bureaucratic organisations. I argue that the structure and mission of publicly owned/controlled enterprises, such as energy companies, are fundamentally different from those of traditional bureaucratic ones, such as the police force or firefighters. Therefore, any thorough examination of PSE should separate both types of organisations. Using a systematic review method, this research synthesises prior studies in order to lead towards an empirical consensus on the impact/effect of PSE on public bureaucratic, administrative and civil service institutions. The results show a highly positive impact of PSE across different units of public bureaucracies/institutions in many parts of the world. In addition, contrary to the arguments of critics, PSE was found to deepen citizen engagement and democracy, rather than destroy them. However, PSE was more likely to succeed when its initiators actively sought to co-create public value with key (internal and external) stakeholders. Consequently, I caution against a market-based approach to PSE that prioritises cost-cutting and commercialisation. Instead, I introduce a conceptual model for a public value approach to PSE.