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Overcoming Institutional Inertia: Intrapreneurship in Public Sector

Foresight and STI Governance | 2026

Paper Details

Authors: Bokhari S.A.A.

DOI: 10.17323/fstig.2026.29771

Journal: Foresight and STI Governance

Year: 2026

Publisher: National Research University Higher School of Economics (HSE University)

Document Type: Article

Open Access: All Open Access; Gold Open Access

Cited by: 1

Abstract

Public organizations face higher demands for innovation while operating under institutional structures that prioritize stability and control. This study develops a theoretical model that explains how entrepreneurial leadership (intrapreneurship) strengthens innovation capability in public organizations. Although research on leadership and public sector innovation has expanded in recent years, the two literatures have evolved separately, leaving limited understanding of how leadership orientations shape the conditions needed for sustained innovation. This study integrates insights from public entrepreneurship, leadership theory, and innovation capability research to explain how intrapreneurship influences organizational processes that support continuous innovation. The model identifies five mediating mechanisms that translate leadership behavior into organizational capability: learning orientation, psychological safety, organizational agility, digital readiness, and absorptive capacity. It also specifies contextual moderators, including administrative burden, political support, digital infrastructure, public service motivation, and bureaucratic culture, which shape the effectiveness of intrapreneurship. The framework positions innovation capability as a multidimensional construct incorporating knowledge management capability, technological capability, collaboration and networking capability, dynamic capabilities, and digital transformation maturity. By linking intrapreneurship to innovation capability and ultimately to public value outcomes, the model advances theoretical understanding of how leadership contributes to organizational adaptability and modernization. The study concludes by outlining implications for leadership development, administrative reform, and digital transformation, while identifying opportunities for future empirical research to test and refine the proposed relationships. © 2026, National Research University Higher School of Economics (HSE University). All rights reserved.

Keywords

innovation capability; intrapreneurship; organizational learning; public sector innovation; public value