IN SEARCH OF INNOVATION IN THE PUBLIC SECTOR: INTERINSTITUTIONAL DIALOGUE BETWEEN CONTROL AND MANAGEMENT

Abstract

Objective: To analyze the relationship between control bodies and management bodies and verify possible tension between them, and what are the causes and consequences for innovation in the public sector. Theoretical Framework: The theoretical framework provides relevant information about the supervision of the Audit Courts in Brazil and its influence on decision-making, risk aversion and the impact of this aversion on innovations in the Brazilian Public Sector. Method: The analysis of this research was based on the methodology of Grounded Theory and on carrying out  interviews with directors of two municipalities located in the State of Rio de Janeiro and supervisory employees of two Audit Courts and two Internal Affairs Offices located in the State of Rio de Janeiro. Rio de Janeiro. Results and Discussion: The existence of tension between control bodies and management bodies contributes to an environment of insecurity and fear in decision-making in public management. The possible causes of this tension are due to factors originating from both sides and from the public sector inspection relationship itself. Research Implications: By specifically examining the causes that lead to this tension, this research fills a crucial gap in the literature, offering insights into the challenges and improvements to having a fertile environment for innovation in the public sector Originality/Value: By understanding the causes that lead to an aversion to risk in relation to innovation, agencies can create mechanisms that create an environment of dialogue and cooperation for innovation in the public sector.