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The purpose of this paper is to examine whether fiscal decentralization has impacts on city innovation level and to examine the moderating effects of the preference for government innovation in China.

Using a panel data of China’s 278 cities from 2003 to 2016, the authors first use fixed-effect model and quantile regression to analyze the impact of fiscal decentralization on city innovation level and the variations of impacts conditional on different innovation levels, followed by a mediating effect model to test the moderating effects of the preference for government innovation and its temporal and spatial heterogeneity.

The paper finds that fiscal decentralization significantly inhibited city innovation, and with the improvement of city innovation level, the inhibition demonstrated characteristics of “V” type variation. When the degree of fiscal decentralization is between 0.377 and 0.600, the inhibition of fiscal decentralization on city innovation level is the weakest. We further show that fiscal decentralization also inhibits the government's preference for innovation, reduces the proportion of fiscal expenditure on innovation and has a negative impact on city innovation. In addition, the influence of fiscal decentralization on city innovation present clear heterogeneity in space and in time. On one hand, the inhibition of fiscal decentralization on city innovation level in eastern China is significantly weaker than that in central and Western China; on the other hand, after the implementation of China’s innovation-driven development strategy in 2013, the negative impact of fiscal decentralization on city innovation disappeared.

The research findings have certain policy implications. That is, in the process of decentralization reform, on the one hand, the central government should strengthen the supervision over the fiscal expenditure of local governments and ensure that the central government can play a leading role in the local development strategy, on the other hand, the central government should guard against the distortion of fiscal decentralization on local governments' fiscal expenditure behavior. In addition, the central government should also focus on the heterogeneity of the impacts of fiscal decentralization on cities under different strategic backgrounds and different levels of innovation.

This paper extends prior research by bringing the decentralization system reform into the study of city innovation system and analyzing its mechanism and its temporal and spatial heterogeneity.

In this paper, the authors focus on participatory budgeting (PB) as an organizational issue in local government. The aim of this study is to analyze the premises of PB becoming institutionalized in local governance by scrutinizing the factors that enable or disable PB as a collaborative innovation process, and that in turn build innovative capacity. The authors study how the collaborative innovation process constructs the innovation capacity of local government and further how this enables PB to institutionalize in local government. With this study, the authors deepen the understanding of PB as a collaborative innovation process that may encounter obstacles and hindrances, but also enablers and drivers for creating and transforming sustainable collaborative practices in local government.

In this paper, the authors present a case study from one Finnish local government, the city of Lahti. The authors employ multifaced empirical data collected from the city of Lahti in two PB rounds between 2019 and 2022. Data include surveys for citizens and employees and municipal councilors and altogether 24 interviews with employees and councilors. The authors also gathered data by observing the PB process in Lahti, taking parts in workshops and meetings between 2019 and 2022. Municipal documents were likewise used as data in this study.

The institutionalization of PB in a local government organization requires organizational innovation capacity, not only individuals who are keen, motived and committed to work on PB. However, the Lahti case shows that successful PB results from the citizens' viewpoint can on one hand be reached while simultaneously the sustainability of PB needs more organizational commitment and support that materializes into managerial activities. The authors found that adequate resourcing is a key question in the institutionalization of PB.

In the present study, the authors approach the often-neglected topic of PB from the professional viewpoint in public administration. The originality of the empirical setting is the multifaced data collection during the first two rounds of PB in Lahti. It is highly relevant to analyze PB in its early stages as the organizational difficulties and resistance are at the time at their highest. This study offers a unique perspective on to the initialization of a novel participatory method in a city where no such efforts on this scale have been implemented before.

Over the past four decades, China has strived to make the market mechanism play a decisive role in resource allocation under the conditions of adhering to the basic socialist economic system. The paper aims to discuss this issue.

On this matter, this paper proposes a three-phase transition hypothesis for the Chinese institutional change models, namely, a de facto path, which gives potential to a successful incremental transition of a centralized country from planned economy to a market economy, lies in the incremental transitions of the institutional change models from a supply-oriented model at initial reform to a middle-proliferation model and to a demand-induced model along with the gradual establishment of exclusive property rights, thereby completing the transition to a socialist-market-economic system.

The Chinese economic model’s unique connotation is the reason why the solution to this model often baffles both the traditional political-economic logic and western mainstream institutional change theory.

This hypothesis corroborates that China’s unswerving practice of economic reform has provided unprecedented opportunities and challenges for the development of economic theory. The Chinese model constitutes the source of innovation for the subject of Economics with Chinese Studies.

The purpose of this paper is to identify individual level perception-based determinants influencing participation in government innovation and to examine the moderating effect of innovation cynicism upon those determinants.

Focusing on the case of Government 3.0, a Korean National Government innovation initiative, this study analyzes survey data regarding local public employee perceptions of the initiative through ordered logistic regression.

Multiple theoretical correlates of perceived desirability, perceived efficacy, performance expectancy, facilitating leadership, peer influence and demonstrable symbols have positive influences on participation in Government 3.0. Surprisingly, cynics of government innovation reported more active participation in Government 3.0 than non-cynics. While cynicism negatively moderates the influence of perceived desirability, performance expectancy and peer influence on Government 3.0 participation, the expected negative moderating effect does not correspond with the influence of perceived efficacy on innovation participation.

The study highlights the importance of innovation cynics, who are probably neither skeptics nor pessimists regarding recent changes but rather are concerned about recurring rhetoric and poor performance of government innovation.

Information technology (IT) constitutes an important driver for innovation in the public sector. However, taking advantage of IT to innovate requires the existence of other organizational and institutional capabilities within the public organization. Using absorptive capability theory, the purpose of this study is to explore the relationship between principles for IT governance and dynamic capabilities across semi-urban (between 10,000 and 149,000 inhabitants), urban (between 150,000 and 600,000 inhabitants) and metropolitan (more than 600,000 inhabitants ) municipal governments in Mexico.

This study reports on three workshops involving 34 chief information officers (CIOs) from semi-urban, urban and metropolitan municipalities. The workshop agenda included a series of brainstorming exercises to discuss – among other topics – the capabilities required for digital government innovation. The capabilities collected during the workshops were codified by the authors based on their relationship to the six IT governance standardized principles and the four dynamic capabilities identified in the literature. The authors used descriptive and correlation analyses to show the importance of governance principles and dynamic capabilities for innovation, as well as the relationships between those two dimensions, in each type of municipality.

This study shows that specific IT governance principles may enhance innovation capabilities linked with knowledge acquisition, assimilation, transformation and exploitation. Moreover, the ways in which IT governance principles support innovation are linked to size, resources and complexity of the local government. In conclusion, this study discusses the primary IT policy implications to improve possibilities to innovate in the public sector.

Although researchers and practitioners agree that following principles of good governance may enhance performance and innovation in the provision of public services, the link between the principles of IT governance and capabilities to spur innovation has not yet been fully established in the literature. Thus, in this study, empirical evidence of this linkage is provided.

The purpose of this paper is to discuss different approaches of performance measurement and benchmarking as “reflexive institutions” for local governments in England, Germany and Sweden from a comparative perspective.

These three countries have been selected because they represent typical (most different) cases of European local government systems and reforms. The existing theories on “institutional reflexivity” point to the potential contribution of benchmarking to public sector innovation and organizational learning. Based on survey findings, in-depth case studies, interviews and document analyses in these three countries, the paper addresses the major research question as to what extent and why benchmarking regimes vary across countries. It derives hypotheses about the impacts of benchmarking on institutional learning and innovation.

The outcomes suggest that the combination of three key features of benchmarking, namely – “obligation”, “sanctions” and “benchmarking authority” – in conjunction with country-specific administrative context conditions and local actor constellations – influences the impact of benchmarking as a reflexive institution.

It is shown in the paper that compulsory benchmarking on its own does not lead to reflexivity and learning, but that there is a need for autonomy and leeway for local actors to cope with benchmarking results. These findings are relevant because policy makers must decide upon the specific “governance mix” of benchmarking exercises taking their national and local contexts into account if they want them to promote institutional learning and innovation.

Most studies in electronic government (e-government) sustainability focus on the role of specific actors (stakeholders such as government employees or citizens) in sustaining an e-government project. However, such actors may not have sufficient resources to support e-government sustainability by themselves and must collaborate across different departments and stakeholders to sustain e-government projects. This paper aims to take a social systems theory perspective on sustainable local e-government, where actors cooperate and coordinate in a social system to leverage resources for e-government sustainability in local government contexts in developing countries.

This paper is an interpretive study of two local e-government case studies based on in-depth interviews with local government information technology (IT) managers, local leaders and staff. Data analysis based on constructivist grounded theory is used to understand the role of a social system in sustaining e-government systems in local governments in developing countries.

The original social system theory was developed for industry initiatives and adapted for public organisations in this paper. The unique characteristics of the public sector and e-government innovation are used to identify new components of the social system related to local e-government. Local e-government is sustained through a collaboration between actors in a social system to leverage resources and reduce challenges.

While this is an exploratory study, the cases show that the use of a social system theory consisting of institutional, management, social and economic components requires multiple lenses for investigation. This is a challenging process because it requires different areas of knowledge to carry out the research. The challenges may influence the overall outcome of this study. In addition, the two cases may generate limited insight and experiences as this study was carried out within two local governments in Indonesia. The findings may not provide a strong basis for generalization to other contexts.

This study offers guidance to local government IT departments to improve collaboration in a social system between local actors (such as political, managers and staff) while implementing and using e-government systems.

Sustainable local e-government requires all actors to coordinate and cooperate in a social system to reduce financial, political and technical challenges.

This paper offers new insight into how a local government collaborates in a social system to realize sustainable e-government systems. Collaborating in a social system reduces common challenges and leverages resources to support e-government sustainability.

The purpose of this paper is to propose a more realistic view of innovation in local government. A key element in this is the notion of innovation value based on people, processes and technology.

The objectives are achieved by reviewing the background literature, a recent study of eGoverment achievement in the UK – VIEGO, and government assessments of innovation in both the EU and the UK. Some empirical evidence of the inherent complexity is also used.

Extant models of innovation tend to focus on the private sector values and their transfer to the public sector is questionable. This with combined with a weak approach to evaluation leaves local government vulnerable.

The political rhetoric that accompanied the introduction of eGovernment expected it to produce innovation in the way government agencies conducted themselves. It is assumed that this innovation is both “good” and inevitable. This paper challenges these simplistic assumptions and proposes a more realistic view.

This study examines the critical factors contributing to the different conditions of innovation sustainability after a change in local political leadership.

This study used a multiple case study approach and applied the critical incident technique (CIT) to collect and analyze data from four innovation cases in the two local governments of Indonesia.

The results highlight that the sustainability condition of each innovation after the political regime change is determined by multiple critical factors.

First, the data collected through interviews may contain a memory bias. Second, this study was limited to local governments and did not consider innovation taxonomies.

The study implies that in order to sustain innovation, public leaders must support innovation legitimacy as a new organizational structure; thus, it can be more durable in the long term. In addition, public leaders need to minimize innovation politicization by authorizing bureaucrats to autonomously manage innovation operationalization.

Public leaders need to pay careful attention to their innovation sustainability because a non-sustained policy can disappoint the individuals working for it, losing their trust and enthusiasm. This dissatisfaction could become a barrier to mobilizing support for the following policies.

Innovation sustainability is a new theme that is overlooked in the public sector innovation literature. Therefore, investigations using different methods and contexts are required, as this study offers. This study also demonstrated the value of CIT in identifying critical factors affecting innovation sustainability in the context of political leadership change.

Reflects on the past decade of change in Central and Eastern Europe and the former Soviet Union. Notes the varying degrees of successful reform and aid/technical assistance for the region provided by international organizations. Examines efforts to provide technical assistance through the application of best practice to local governments. Develops a case study, using Hungary as a setting, of a local government deputy mayor and simulates a technical assistance best practice transfer. Describes also an alternative home‐grown best practice project at the local level. Lessons learned from these projects show that historical and contextual conditions have a very large impact on capacity building efforts in countries of transition; political values have to be developed and an organizational infrastructure to express them is essential. Ultimately, the knowledge and skills of senior managers must be cultivated, to assist them in nurturing the social capital needed for them to govern effectively.