Antecedents of Organizational Innovation: The Diffusion of New Public Management Into Danish Local Government

The relation between leadership, the context in which it takes place and the adoption of organizational innovations associated with New Public Management (NPM) is explored in an empirical analysis of Danish local government. Two different strategies for conceptualizing NPM are contrasted: (1) treating NPM as one phenomenon; and (2) acknowledging important differences between organizational innovations associated with NPM. Management's preferences and perceptions of work relations, role in change processes, daily work priorities and rejection of traditional bureaucratic roles as well as the electorate's ability to formulate clear goals are found to be significantly related to the adoption of NPM innovations. Organizational size is found to be the most important contextual antecedent for the adoption of NPM innovations. Distinctions between marketization‐type NPM innovations and generic managerial‐type NPM innovations and the timing of their introduction are made, unveiling significant differences between the antecedents of different types of NPM innovations.