The effects of public service motivation, risk propensity and risk perception on defensive decision-making in public administrations

Fabienne-Sophie Schäfer, Bernhard Hirsch and Christian Nitzl

Journal of Public Budgeting, Accounting & Financial Management, 2022, vol. 35, issue 2, 244-263

Abstract: Purpose - Drawing on the literature on public service motivation, the authors investigate the relationship between public service motivation and defensive decision-making. Further, the authors explore risk propensity and risk perception as potential antecedents of defensive decision-making. Design/methodology/approach - Based on survey data from 144 German public financial managers of municipalities and federal agencies, the authors find no significant direct relationship between public service motivation and defensive decision-making. Findings - However, the authors can show that risk propensity fully mediates the relationship between public service motivation and defensive decision-making. The findings also indicate that beyond the public service motivation and individual risk propensity of public financial managers, their risk perception does influence their decision making. Originality/value - The study makes three contributions to the literature. First, the authors contribute to the relatively small amount of research on the risk-taking behaviour of public managers by explaining the indirect impact of PSM on their risk-taking behaviour. Second, this paper furthers the understanding of the influence of risk perception and risk propensity on decision-making and enhances the models of Sitkin and Pablo (1992) and Sitkin and Weingart (1995). Third, the paper also contributes to the call for more international research on German public administrations.

Keywords: PLS-SEM; Public service motivation; Risk perception; Risk propensity (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jpbafm:jpbafm-04-2022-0060

DOI: 10.1108/JPBAFM-04-2022-0060

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