Lack of public service motivation as a value-constraining mechanism in entrepreneurial ecosystems

This paper examines how public service motivation (PSM) shapes public value creation (PVC) within publicly funded entrepreneurial support organizations (ESOs). As public service ecosystems, ESOs play a pivotal role in entrepreneurial ecosystems (EEs), yet how they create public value remains underexplored. While existing research emphasizes PSM at the individual level, less is known about how PSM translates into intentional PVC in boundary-spanning ecosystem contexts. Drawing on an empirical qualitative multi-case study, we show that although ESO staff exhibit a strong commitment to enhancing the public interest, regional-level PVC is constrained by unclear and narrow organizational goals, inconsistent practices, and limited leadership support. Our findings highlight the need for leadership grounded in transformative, supportive, and human-centred practices, as well as leadership collaboration spanning organizational boundaries. This paper clarifies the organizational conditions under which PSM contributes to PVC in hybrid governance settings.