Public organizationmanagement studies has emphasized the role of organizational culture in terms of organizational innovation and effectiveness. In addition, many studies have been interested the role of public service motivation. However, little studies have not been focused on the relationship between organizational culture and public service motivation(PSM) and mediating role of adhocracy culture in the relationship. This study tries to find the way how to reduce the side effects of markettype reform and how to increase public employee attitudes(public service motivation) by exploring the the relationship and the mediating effect.
KOREAN COMPARATIVE GOVERNMENT REVIEW (한국비교정부학보) Vol 26, No March 2022(41-64) https://doi.org/10.18397/kcgr.2022.26.1.41 pISSN: 1598-964X 41 eISSN : 2713-5357 Organizational Culture and Public Service Motivation in Executive Agencies: Mediating Role of Adhocracy Culture*1) Seung-uk Hur* Associate Professor, Department of Public Administration, Kyonggi University, South Korea 조직문화와 공공봉사동기 : 혁신문화의 매개효과 허 성 욱 (경기대학교 행정학과 부교수) Abstract Public organization/management studies has emphasized the role of organizational culture in terms of organizational innovation and effectiveness In addition, many studies have been interested the role of public service motivation However, little studies have not been focused on the relationship between organizational culture and public service motivation(PSM) and mediating role of adhocracy culture in the relationship This study tries to find the way how to reduce the side effects of (Purpose) market-type reform and how to increase public employee attitudes(public service motivation) by exploring the the relationship and the mediating effect (Design/mehodology/approach) Using survey data from executive agency (46 agencies) in Korea, this article examines the relationship between four types of culture (clan, adhocracy, market, and hierarchy) and public service motivation (PSM) In particular, the mediating effect of adhocracy is explored based on positive organizational behavior In this study, the role of organizational culture is explored by applying competing values framework (Findings) The results of direct and indirect effects present that adhocracy culture fully mediates the impacts of market culture on PSM, whereas it partially mediates the impact of clan and hierarchy culture on PSM The results also demonstrate that clan and adhocracy culture can improve PSM (Research implications or Originality) This study contributes to elaborating the relationship between organizational culture and PSM by employing four types of culture from the CVF and considering the possible mediating role of adhocracy culture The results suggest that scholars and practitioners need to focus on the role of clan and adhocracy culture to eliminate negative effects of NPM reforms and to improve PSM Especially, it is important for them to consider about how to cultivate and manage adhocracy culture importantly, when they make policies or practices for the development of employees' moral and attitudes 주제어: 조직문화, 혁신문화, 공공봉사동기, 책임운영기관 Keywords: Organizational culture, Adhocracy culture, Public service motivation, Executive agency * hur.seunguk@gmail.com Copyright © 2021 by the Korean Association for Comparative Government This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License which permits unrestricted non-commercial use, distribution and reproduction in any medium, provided the original work is property cited KOREAN COMPARATIVE GOVERNMENT REVIEW Vol 26, No 42 I Introduction The spreading of new reform efforts such as Governance and New Public Service responding to the market model in public sectors is a noticeable trend in diverse countries (Denhardt and Denhardt, 2015) In this context, the side effects of the NPM model for public service have been a significant issue in the public administration studies (Dunleavy, Margetts, Bastow, and Tinkler, 2006) For instance, NPM reforms can give a harmful effect on the identity of public organizations and public employees Especially, they also give negative effects of employees' motivations and attitudes.1) With respect to the problems, several public management studies have suggested that cultivating public service motivation (PSM) can work as a prominent prescription for reducing side effects of the NPM model and increasing public employee attitudes (Kim and Han, 2017; Moynihan, 2010; Perry, Hondeghem, and Wise, 2010), and culture is an important antecedent of PSM (Lee, Oh, and Park, 2020; Moynihan and Pandey, 2007b; Houston, 2000) The underlying assumption of the previous studies is that organizational culture plays a significant, albeit informal, role in guiding employees' attitudes because of either the socializing power of values (Hartmann and Khademian, 2010; O'Reilly and Chatman, 1996) or the bounded rationality of public employees (Dull, 2010) Although the significance of culture has been discussed by many scholars, there are still controversies about the role played by each type of culture' role (Kim and Kim, 2015; Kim and Han, 2017; Lee, Oh, and Park, 2020) For instance, there are contradictory opinions about the impact of market and hierarchy cultural values on public employee attitudes (Cho and Ringquist, 2011; Kim and Han, 2017; Moynihan, 2010; Paarlberg and Lavigna, 2010; Park and Rainey, 2008; Yang and Kassekert, 2010) On the other hand, clan and adhocracy cultural values have been shown to have positive effects on employee attitudes measured by job satisfaction and intrinsic motivation In particular, autonomy and innovation, which are representative values in adhocracy culture (e.g., Cameron and Quinn, 2011; Hartnell, Ou, and Kinicki, 2011; Yang and Kassekert, 2010), generally show a positive relationship with employee attitudes Although Paarlberg and Lavigna (2010) point out that autonomy can play a positive role in supporting PSM, it remains unclear as to whether and how much of adhocracy culture plays a significant role in the relationship with PSM 1) Moynihan (2010, 24) argues that tying contingent pay incentives to performance measures in a public service agency does not solve moral hazard problems and results in crowding out the effects of intrinsic motivation Organizational Culture and Public Service Motivation in Executive Agencies: Mediating 43 Role of Adhocracy Culture To fill these gaps, this article explores on the mediating role of adhocracy culture in the association with three types of culture (clan, market, and hierarchy culture) and PSM The reason behind testing the mediating role of adhocracy culture is that autonomous-supportive cultural values have the characteristics of positive psychological capital (Luthans, Norman, Avolio, and Avey, 2008; Luthans and Youssef, 2007) The studies of POB imply a significant mediating effect of adhocracy culture, but little empirical analysis has been done for testing the potential mediating effect of adhocracy culture on PSM Particularly, using the case of Korea executive agency system may provide useful understanding to the current debate on market-type reforms in public agencies and PSM First, the executive agency system, known as agencification, is a core element of NPM initiatives (Moynihan, 2006) Second, in contrast to worldwide trend, the evaluation of the executive agency by the Korean government demonstrates several positive results: improved agency performance, increased quality of public service, and higher levels of collaboration within/between agencies as well as between agencies and the central government (MOSPA, 2009, 2013) Especially, the central government and executive agencies have tried to improve managerial autonomy of the executive agency in terms of personnel and organizational flexibility (Kang, 2021; MOSPA, 2009, 2013) Thus, this study also can provide insights about how to deal with cultures, especially adhocracy culture, in running public organizations II Theoretical Background and Hypotheses Building Self-Determination Theory SDT differentiates between extrinsic motivation and intrinsic motivation based on the extent of lack of autonomy and suggests that two types of motivation can be changed by employee' intention (Deci, Connell, and Ryan, 1989) More specifically, SDT differs from other motivation theories in that the nature of individual motivation can be placed on a continuum: as an individual moves towards internalizing the external regulations and incentives and integrating them with his or her own values, the person moves toward more autonomous and intrinsic motivation (Park and Rainey 2008, 114-115) For instance, when public employees consider that some public values are important for them to carry out their task, the values serve as a critical mechanism in public employee motivation, even though external rewards or incentives are not guaranteed KOREAN COMPARATIVE GOVERNMENT REVIEW Vol 26, No 44 SDT also suggests that social-contextual environments work as important external factors in formulating intrinsic motivation (Corduneanu, Dudau, and Kominis, 2020) In the process or development of individual motivation, the role of cultures is crucial: cultures and values are important because they suggest that cultures play a role in whether the people can experience satisfaction of their basic needs (Deci and Ryan, 2012) Different types of culture can facilitate or diminish intrinsic motivation depending on whether certain cultures satisfy the extent of the needs of autonomy, competence, and relatedness1 (Deci and Ryan, 2000; Gagn and Deci, 2005) For instance, cultures emphasizing competition and control are likely to have harmful effects on intrinsic motivation On the other hand, autonomous supportive cultural values such as trust and empowerment can promote internalization of a regulation or given values in an organization and thus enhance intrinsic motivation of employees (Deci and Ryan, 2012) Implicitly or explicitly, the intersection of culture and the intrinsic motivation has provided public administration studies a framework for understanding about how to deal with culture or values in the relationship with PSM (Moynihan and Pandey, 2007b; Park and Rainey, 2007, 2008) In addition, it provides basic logic of how to solve the negative effects of market type reforms for public service in terms of PSM (Moynihan, 2010) Public Service Motivation Diverse types of motivation have been used to study the effects of organizational functions or management reforms on public employees' attitudes (Corduneanu, Dudau, and Kominis, 2020; Moynihan and Pandey, 2007b; Pitts, Marvel, and Fernandez, 2011; Yang and Kassekert, 2010) Among diverse motivations, intrinsic motivation has gained much attention recently relative to extrinsic motivation (Bertelli 2007; Cho and Perry, 2011), because it increases employees' passion and enthusiasm about the job, promotes optimistic and positive attitudes toward work and commitment to the organization, and helps maintain a consistent level of high performance (Deci and Ryan, 2012) In the study of intrinsic motivation, SDT plays as one of main theory and many studies use SDT to explores PSM in the relationship with macro, meso, and micro levels of factors (Corduneanu, Dudau, and Kominis, 2020) PSM is defined as an individual's predisposition to respond to motives grounded primarily or uniquely in public institutions and organizations (Perry and Wise, 1990, 368) The theory of PSM suggests that PSM is a unique and Organizational Culture and Public Service Motivation in Executive Agencies: Mediating 45 Role of Adhocracy Culture fundamental attitude of public employees (Perry et al., 2010; Perry and Wise, 1990) Public employees' attitudes are guided by public values: attraction to public affairs, commitment to the public interest, compassion, and self-sacrifice (Perry, 1996) In a similar vein, Vandenabeele (2007) characterizes PSM as belief, values and attitudes that go beyond self-interest and organizational interest, that concern the interest of a larger political entity (P 547) Taking up the opinions of Perry and his colleagues, public management scholars have paid attention to diverse antecedents or consequence of PSM Some studies confirm that PSM dose exit and verify diverse antecedents of PSM (Houston, 2000; Perry and Hondeghem, 2008; Perry et al., 2010; Ritz, Brewer, and Neumann, 2016) In addition, PSM, explained by SDT, the more PSM public employees possess, the more likely they will enjoy the task and perform the job well (Lee, Oh, and Park, 2020; Park and Rainey, 2008; Moynihan, 2010) Employees who have a higher level of PSM exhibit more organizational commitment, job satisfaction, and higher performance as well as lower turnover (Crewson, 1997; Perry, Hondeghem et al., 2010; Kim, 2012) Finally, strong PSM is not easily altered in response to adverse environments such as the change of financial rewards and the adoption of market-oriented reforms (Moynihan, 2010) Organizational Culture and Competing Values Framework Culture is important but complicated and ambiguous (Khademian, 2002) Although there have been various definitions and approaches to culture, this study views culture as shared a set of values among employees that can be cultivated by managers in order to improve employee attitudes (Cameron, 2006; Hartmann and Khademian, 2010; O'Reilly and Chatman, 1996; O'Reilly, Chatman, and Caldwell, 1991) In other words, this study follows the socio-functional approach (Cameron and Quinn, 2011),2) and value is regarded as a crucial factor because of its socialization power (O'Reilly and Chatman, 1996; O'Reilly, Chatman, and Caldwell, 1991) This study employs culture types developed by the competing value framework (CVF) (Cameron and Quinn, 2011) The CVF has been increasingly found to be useful in studying the role of culutre in the public sectors (Andersen and Moynihan, 2016; Jrgensen and Bozeman, 2007; Moynihan and Pandey, 2007a, 2) Socio-functional approach means that culture is a socially constructed attribute of organizations that serve as the social glue binding an organization together (Cameron and Quinn, 2011, 18) KOREAN COMPARATIVE GOVERNMENT REVIEW Vol 26, No 46 2007b; Moynihan, Pandey, and Wright, 2012; Stazyk and Goerdel, 2012) Furthermore, the reliability and content validity of the CVF has been empirically supported in existing research by applying multidimensional scaling and structural equation modeling (Howard, 1998; Quinn and Spreitzer, 1991) Finally, the CVF provides the survey, Organizational Culture Assessment Instrument (OCAI), for measuring the four types of culture in the CVF (Cameron and Quinn, 2011) The CVF pays attention to the underlying competing core values that are indicative of what people value about an organization's performance (Cameron and Quinn, 2011) and how those values can be applied to organizational changes It is a multidimensional model, which employs four distinct cultural types: Clan, Adhocracy, Market, and Hierarchy in the four quadrants created by two major dimensions: the internal/external and flexibility/stability The internal/external dimension reflects whether the organization is concentrated on its internal dynamic processes or on the demands of external environmental pressures The flexibility/stability dimension represents whether the organization pursues social coordination and control based on the internalization of belief, participation, commitment, and improving members' ability to achieve success in an organization, or if the organization's emphasis is on the formal systems of control and coordination for efficient and effective organizational management Clan culture emphasizes trust, commitment, and human development for improving participation, openness, and discussion (Cameron and Quinn, 2011; Jrgensen and Bozeman, 2007) There are largely two perspectives about clan culture One perspective approaches the needs of clan culture from a utilitarian perspective (Ouchi, 1979; Terry, 1998) This perspective posits that clan culture can reduce transaction costs in information exchange, adapting to a changing situation and so on (Zaheer, McEvily, and Perrone, 1998) On the other hand, positive organization behavior (POB) studies claim that important values in clan culture such as trust and empowerment can strengthen intrinsic motivation, since those values can work as catalysts in cultivating the goodness of employees and positive human potential in an organization (Dutton, Glynn, and Spreitzer, 2006; Luthans and Youssef, 2007) For instance, empowerment can lead employees to feel a sense of significance, community, and even fun (Rainey, 2009, 328) In short, both perspectives demonstrate that clan culture can facilitate positive employee attitudes Empirical results support that clan values such as trust exert a positive effect on PSM (Chen, Hsieh, and Chen, 2013) H1: Clan culture has a positive influence on PSM Organizational Culture and Public Service Motivation in Executive Agencies: Mediating 47 Role of Adhocracy Culture Market culture stresses competition, direction, and goal clarity to facilitate productivity, accomplishment, and improve public service quality (Cameron and Quinn, 2011; Jrgensen and Bozeman, 2007; Talbot, 2008) However, some scholars who emphasize democratic and constitutional public values have criticized adopting market culture in public sectors (Denhardt and Denhardt, 2011; Terry, 1998) This perspective suggests that reforms supported by the market culture, such as pay-for-performance systems, may have harmful effects on public employees' morale and attitude, since it can damage public or constitutional values (e.g., loyalty, due process, and transparency) held by individuals and organizations (Moynihan, 2010; Rosenbloom, 2007) While there are mixed empirical results for the effects of market type reforms on employee attitudes (Yang and Kassekert, 2010), this study assumes that market culture may reduce public employee's morale and damage public values, and thus reduce PSM (Moynihan, 2010) H2: Market culture has a negative influence on PSM Hierarchy culture develops a strategic thrust toward information management and documentation, standardized rules and procedures through stability, control, and continuity (Cameron and Quinn, 2011; Jrgensen and Bozeman, 2007) Hierarchy culture has been regarded as one of primary characteristics of public organizations (Downs, 1967; Stazyk and Goerdel, 2011) Downs (1967) claims that hierarchy systems are invented in order to facilitate coordination, cooperation, resource allocation, and communication within and between bureaus However, as the level of hierarchy increases, it can distort information flows and communication A series of scholars focuses on dysfunctional roles of hierarchical values, since they can not only produce inefficiency, resistant management reforms, and impersonality, but also spread red-tape in public organizations (Bozeman and Scott, 1996; Gore, 1993) However, Quinn (1998) suggests that hierarchical culture has a positive impact on employees' attitudes, when the extent of hierarchy culture is not excessive Rubin (2009) also demonstrates that procedural justice presents positive relationship with employee satisfaction With respect to the contradictory results, SDT explains that hierarchy cultural values are far from intrinsic motivation and work to prevent the development of intrinsic motivation because in order to sustain continuity and order, hierarchical approaches usually use sanctions H3: Hierarchy culture has a negative influence on PSM KOREAN COMPARATIVE GOVERNMENT REVIEW Vol 26, No 48 Adhocracy culture develops a strategy of creating new services and resource acquisitions by emphasizing autonomy, adaptability, and innovation (Cameron and Quinn, 2011; Jrgensen and Bozeman, 2007; O'Reilly et al., 1991) It encourages employees and leaders to take on hardship, adapt to new directions, and use performance information (Cameron, 2006; Cameron and Quinn, 2011) SDT explains that autonomy is a core value in intrinsic motivation so that the more autonomy employees have, the more likely they will enjoy the task and produce good performance (Ryan and Deci, 2012) Finally, Paarlberg and Lavigna (2010) demonstrate that autonomy have a positive relationship with PSM H4: Adhocracy culture has a positive influence on PSM Mediating Role of Adhocracy Culture The four types of culture in the CVF that are located on different quadrants are assumed to have tensions or competing relationship with each other (Cameron and Quinn, 2011) That is, each culture having different values, assumptions, and orientations may have negative relationship with other types of culture in the CVF For instance, hierarchy culture that stresses out control may undermine creativity and autonomy addressed in adhocracy culture SDT claims that autonomy cannot be grown up, when social contexts are control-oriented or competition-oriented (Deci and Ryan, 2000) Clan culture placing more significance on groups or collaboration among employees than individuals can reduce individual autonomy and creativity Adhocracy culture can serve not only as an antecedent of PSM, but also a mediator between other types of culture and PSM (Deci and Ryan, 2000) According to Reeve and Deci (1996), perceived autonomy shows a mediating role between interpersonal context conditioned by competition or control situation and intrinsic motivation In addition, adhocracy culture can serve a distinguishable role relative to other types of culture According to Positive Organizational Behavior (POB) perspective (Luthans et al., 2008; Luthans and Youssef 2007),3) adhocracy culture shares commonality with positive psychological capital For instance, Luthans et al (2008, 223) characterize positive psychological capital as the followings: (1) having confidence (self-efficacy) to take on and put in the 3) POB is defined as the study and application of positively oriented human resource strengths and psychological capacities that can be measured, developed, and effectively managed for performance improvement in today's workplace (Luthans and Youssef, 2007, 327) Organizational Culture and Public Service Motivation in Executive Agencies: Mediating 49 Role of Adhocracy Culture necessary effort to succeed at challenging tasks; (2) making positive attribution (optimism) about succeeding now and in the future; (3) persevering toward goals and, when necessary, redirecting paths to goals (hope) in order to succeed; and (4) when beset by problems and adversity, sustaining and bouncing back and even beyond (resiliency) to attain success† This approach explains that positive psychological capital has state-like character and thus can be developed by intentional efforts or training (Luthans, Avolio, Avey, and Norman, 2007) Luthans et al (2007) address psychological capital components (self-efficacy, optimism, hope, and resiliency) build values In other words, desirable and positive strengths of positive psychological capital are closely connected with cultural values In addition, positive psychology capital increases moral or ethical decision-making, attitudes, performance (Cho and Perry, 2011; Luthans et al., 2007) Finally, POB scholars stress out that positive psychological capital has a distinguishable character compared to other values such competition and control In particular, it can diminish the negative and amplify the positive conditions or contexts in the relationship with work motivation (Dutton et al., 2006; Luthans et al., 2008) In sum, positive psychological capital and adhocracy culture share common grounds in terms of roles, characters and components Taking up the commonalities and possibility of the mediating role, it is expected that adhocracy culture may serve as a mediating variable that transmits or change the effects of clan, market, and hierarchy culture on PSM H5: Clan culture has a negative influence on adhocracy culture H6: Market culture has a negative influence on adhocracy culture H7: Hierarchy culture has a negative influence on adhocracy culture H8: Adhocracy culture mediates the relationship between clan culture and PSM H9: Adhocracy culture mediates the relationship between market culture and PSM H10: Adhocracy culture mediates the relationship between hierarchy culture and PSM Control Variables In order to separate the effects of culture on PSM, a number of individual and organizational characteristics are controlled in the analysis For instance, education and length of service show significant impacts on PSM (Moynihan and KOREAN COMPARATIVE GOVERNMENT REVIEW Vol 26, No 50 Pandey, 2007) Each executive agency was created during different years According to Vandenabeele (2007), the formation of PSM can be guided through institutional or cultural socialization Furthermore, time performs an important role in building culture and PSM Therefore, we employ the age of an agency to control for varying power of socialization in each agency and to address the limitation of cross-sectional nature of the data In addition, demographic factors such as age and gender are included Perry (1997) demonstrates that female employees are more likely to have lower levels of PSM than male employees and that age is one of important antecedents of PSM Finally, satisfaction about a pay is also added as a managerial control variable PSM can work as an intrinsic motivation (Park and Rainey, 2008, Moynihan, 2010) According to SDT, extrinsic rewards result in harmful effects to employees' creativity or autonomy (Deci and Ryan 2000) Several recent studies also suggests that extrinsic rewards have a negative association with intrinsic motivation or PSM and crowds out intrinsic motivation (Cho and Perry, 2011; Moynihan, 2010) On the other hand, Wright (2007) finds that extrinsic rewards allow individuals to find importance in their job Taken together, extrinsic rewards have a substantial influence on PSM In this sense, satisfaction about a pay is included to control the direct and indirect impacts of each type of culture on PSM III Methods To test the hypotheses developed above, an empirical analysis is conducted using the case of the executive agencies in Korea The case of the executive agency system in the non-western county like Korea is useful in that it provides insights about the ongoing debate of the market-type reform mainly developed in the western countries Following up recommendation of the International Monetary Fund (IMF), the Executive Agency system was aggressively adopted as a part of NPM reforms and driven by the Korean government as a 'small government' reform strategy.4) 4) Korea government launched executive agency system based on a British model by adopting the Executive Agency Law (#5711) to establish and operate responsible administrative agencies by separating implementing functions of the central government from policy functions and by strengthening achievement/resource contract, performance reporting, performance accountability, performance audit, and strategic management for improvement of public service delivery Executive agencies have been still running as Organizational Culture and Public Service Motivation in Executive Agencies: Mediating 51 Role of Adhocracy Culture The Korean government launched executive agency system in 1999 to change existing culture in a public organization: decrease hierarchy culture and increase market culture After ten years the survey for 'the Performance Analysis and the Development of Executive Agency of Korea' was conducted to evaluate the executive agency policy A total of 1,535 surveys were distributed to all 46 executive agencies and 1,370 completed surveys were returned, and 1,232 surveys were used for this study after every missing data were eliminated PSM was measured by items considering previous studies.5) Items reflects three dimensions such as normative motive, public orientation, intrinsic motivation Factor analysis and reliability analysis were conducted by SPSS 20.0 The results showed that factor loading values were all above 700 and reliability value was 882 'The Organizational Culture Assessment Instrument (OCAI) was employed to measure organization cultures.6) Table shows descriptive statistics and reliability of each variable Three models are developed to test ten hypotheses The scores of each type of culture are made by the OCAI, which has the attribution of ipsative data (Hicks, 1970; Jones et al., 2005) Hicks (1970) suggests that if one or more culture types are deleted in the analysis, the culture scores not meet the standard for pure ipsativity This study develops three models on the basis of the suggestion of Hicks (1970) and the strategy used in Jones, Jimmieson and Griffiths (2005).7) of today 5) Korean contexts and the characters of executive agencies are considered to measure PSM First, Kim (2009) suggests that Attraction to Public-Policy Making (APM) does not play a significant role in Korea In addition, the main role of an executive agency is not policy development but execution of public service Second, Vandenabeele (2008) points out that customer orientation is one of important dimensions in PSM, because providing a quality public service or holding citizen orientation is an important value in recent management reforms and traditional government roles Third, Park and Rainey (2008) explore the role of PSM They use three variables reflecting norm-based motives, affective motives, and intrinsic rewards 6) The OCAI is created to measure organizational cultures in conjunction with the CVF (Cameron and Quinn, 2011) The OCAI consists of six categories (e.g., Dominant characteristics, Organizational leadership, Management of employees, Organization glue, Strategic emphases, and Criteria of success) Each category is composed of four questions consistent with clan culture, adhocracy culture, market culture, and hierarchy culture Each set of four questions has a total of 100 points The respondents can subjectively distribute 100 points to each set of four questions Each culture is formulated by calculating mean of six items 7) Harman's single-factor test is used to investigate the seriousness of common method bias In the test, common method bias is assumed to exist when a single factor emerges from unrotated factor solutions, or a first factor explains the majority of the variance in the variables (Podsakoff, MacKenzie, Lee, and Podsakoff, 2003) In this KOREAN COMPARATIVE GOVERNMENT REVIEW Vol 26, No 52 Descriptive Statistics and Reliability of Each Variable (n = 1232) Control Variables Skewness Kurtosis 7.78 0.59 1.08 20.62 5.48 -0.02 1.09 Market Culture 27.04 7.73 1.12 4.04 Hierarchy Culture 29.13 9.92 1.38 5.18 PSM 3.11 0.91 -.026 -.023 Age 2.71 0.80 -0.01 -0.55 Gender (male = 1) 0.61 0.49 -0.45 -1.80 Education 3.06 1.24 -0.04 -0.74 Length of Service (month) 176.05 104.49 0.17 -0.93 Agency Age (year) 4.87 2.73 0.61 -1.48 Satisfaction about a Pay 2.76 0.98 -0.04 -0.42 Mean SD Clan Culture 23.30 Adhocracy Culture Notes: There are no univariate indices of skewness and kurtosis which are greater than the absolute value of 3.0 and of 7.0 respectively (Kline 2010) Age: 20s =1, 30s =2, 40s =3, 50s or older = Education: High school diploma = 1, Junior college diploma (2 years) = 2, Undergraduate degree (4 years) = 3, Master degree = 4, Doctoral degree = Satisfaction about a pay: Responses on a five-point agree/disagree scale, coded (strongly disagree) through (strongly agree) Each model uses clan, market, and hierarchy as an independent variable to measure the relationship between the cultures and the PSM as well as to explore the mediating effects of adhocracy culture in the association between other cultures and the PSM Finally, discriminant validity among latent variables is not proper here because each type of culture has a single latent construct in each model except for the PSM (Morgeson et al., 2011) Figure presents the hypothesized model of cultures and the PSM study, factor analysis indicates that four factors are extracted, and the biggest factor is not more than 50% in each model Organizational Culture and Public Service Motivation in Executive Agencies: Mediating 53 Role of Adhocracy Culture Hypothesized Model Adhocracy Model 1: Clan Model 2: Market Model 3: Hierarchy PSM Controls Age, Gender, Education, Length of Service, Agency Age, Satisfaction about a pay Table presents the summary of the overall fit indexes of the Model 1, 2, and The values of several indexes are proper, because cut-off values of GFI, AGFI, CFI, NFI, RFI, and TLI are higher than 0.90 (Kline 2010) In addition, the values of RMSEA is lower than 0.8 and thus there are no problems with model fit values (Jaccard and Wan, 1996) In short, the overall fit indexes of each model indicate that there are no problems in running the models using SEM to test hypotheses Finally, bias-corrected bootstrapping is employed to run the models because it provides adequate power in measuring mediation effects (Kline, 2010) Specifically, bootstrapping is performed on the basis of following standards: number of bootstrap = 2000, bias-corrected confidence intervals = 95% and boot-factor = Table Overall Fit Indexes of the Each Model df ChiSquare/df PValue GFI AGFI CFI NFI RFI TLI RMSEA Model 55 4.696 000 971 945 962 953 922 937 055 Model 55 4.851 000 970 943 960 951 918 934 056 Model 55 4.307 000 973 949 969 960 934 949 052 KOREAN COMPARATIVE GOVERNMENT REVIEW Vol 26, No 54 IV Results First, the results show that adhocracy culture is directly, positively, and significantly related to PSM in each model ( = 148, = 163, = 076) thus, H4 is accepted (see Table 3) Table Structure Models with Standardized Total, Direct and Indirect Effects Model Clan Total Adhocracy 187*** PSM 141** Adhocracy 187*** PSM 114*** effects Direct effects Indirect Adhocracy effects PSM 000 028*** Model Adhocracy 148** 148** - Market -.071* -.015 -.071* -.003 000 -.012* Adhocrac y 168*** 168*** - Model Hierarch y Adhocracy - -.597** -.201** * -.597** * -.156** * 076** 076** - 000 - -.045** Control Variables Path Model Model Model Age PSM -.042 -.031 -.024 Gender PSM 050* 046 050* Education PSM 047 044 040 Length of Service PSM -0.23 -.032 -.040 Agency Age PSM 032 031 038 Satisfaction about a PSM 273*** 287*** 275*** Pay Notes: Bootstrap, bias-corrected two-tailed test used to calculate significance of total effects, direct effects, and indirect effects * P < 10, ** P < 05, *** P < 001 The results of model shows that clan culture has a direct and positive effect on PSM and adhocracy culture ( = 114, = 187) The indirect effect of clan culture on PSM is significant ( = 028) Hence, H1 and H8 are accepted, but H5 is rejected In model 2, market culture exerts a direct and negative effect on adhocracy culture ( = -.071) whereas it does not have significant direct effect on PSM However, the market culture is indirectly, negatively and significantly related to PSM ( = -.012) Therefore, H6 and H9 are accepted, but H2 is rejected Model shows that hierarchy culture is directly, negatively, and significantly related to PSM and adhocracy culture ( = -.156, = -.597) Organizational Culture and Public Service Motivation in Executive Agencies: Mediating 55 Role of Adhocracy Culture Furthermore, hierarchy culture has an indirect, significant, and negative effect on PSM ( = -.045) This means that H3, H7, and H10 are accepted Finally, in each model, satisfaction about a pay has a positive and significant effect on PSM ( = 273, = 287, = 275) Gender also shows a positive and significant relationship with PSM in model and ( = 05, = 05) Table summarizes the results of testing the hypotheses Summary of Hypotheses' Tests Hypotheses H1: Clan culture has a positive influence on PSM Results Accepted H2: Market culture has a negative influence on PSM Rejected H3: Hierarchy culture has a negative influence on PSM Accepted H4: Adhocracy culture has a positive influence on PSM Accepted H5: Clan culture has a negative influence on adhocracy culture Rejected H6: Market culture has a negative influence on adhocracy culture Accepted H7: Hierarchy culture has a negative influence on adhocracy culture Accepted H8: Adhocracy culture mediate the relationship between clan culture and PSM Accepted H9: Adhocracy culture mediate the relationship between market culture and PSM Accepted H10: Adhocracy culture mediate the relationship between hierarchy culture and PSM Accepted This study confirms that clan culture has a positive relationship with PSM and adhocracy culture (H1: accepted, H5: rejected) This finding is consistent with previous studies of the utilitarian approach and POB (Luthans and Youssef, 2007; Ouchi, 1979; Terry, 1998) However, clan and adhocracy cultures show positive relationship This means that although the CVF posits that different types of culture have competing relationships, they may complement each other (e.g., clan culture complement adhocracy culture) In other words, when clan culture is not excessive, it can help the development of adhocracy culture Second, market culture has a negative influence on adhocracy culture, but does not show significant and negative effects on PSM (H6: accepted, H2: rejected) Third, hierarchy culture has a negative effect on PSM and adhocracy culture (H3, H7: accepted) These results support the basic proposition of SDT that sanctions and controls have negative effects on the development of autonomy and motivation However, the results of hierarchy and market culture suggest that further research is needed This is because, according to SDT, if hierarchy and market KOREAN COMPARATIVE GOVERNMENT REVIEW Vol 26, No 56 cultural values is integrated or internalized by public employees, it can also show positive effects on PSM Several studies claim that market or hierarchy cultural values can work positively when the level of each culture is proper (Downs, 1967; Quinn, 1988) In other words, effects of each type of culture can be changed depending on whether the level of cultures cross threshold from positive zone to negative zone (Quinn, 1988) Therefore, future study is needed to explore the threshold effects of culture on PSM In this study, the mediating role of adhocracy culture presents interesting results Adhocracy culture fully mediates between market culture and PSM, while it partially mediates among clan and hierarchy culture and PSM (H8, H9, H10: accepted) Compared to other culture types, adhocracy culture includes autonomy which works a main role to the development of PSM When market culture does not have significant relationship with PSM, adhocracy culture can connect between market culture and PSM and fully mediate the relationship between them This means that policies or practices emphasizing competition (e.g., pay for performance) may not give direct harmful effects on PSM It is necessary to consider that adhocracy culture can make causal link between market culture and PSM Thus, scholars and practitioners need to think about how adhocracy cultural values such as autonomy work when we make policies or practices for the development of employees' moral and attitudes Moreover, the positive role of adhocracy culture implies that adhocracy culture can amplify the positive effects of clan culture and decrease the negative effects of market and hierarchy culture Future study is needed to examine the moderating role of adhocracy culture based on positive psychological capitals can diminish the negative effects and increase the positive effects of certain types of culture on employees' attitudes (e.g., Dutton et al., 2006; Luthans et al., 2008) V Conclusions Although diverse efforts based on NPM have changed the structures, cultures, practices in public organizations, many scholars have warned the possible negative effects from NPM and suggest diverse alternative ways The case of Korean reform may provide useful insights to the current controversy of the market-type of reform Overall, the results provide support for the view that culture, especially adhocracy culture, matters for PSM The results also help to identify the extent to which adhocracy culture plays a mediating role in the Organizational Culture and Public Service Motivation in Executive Agencies: Mediating 57 Role of Adhocracy Culture association of other types of culture with PSM Furthermore, this study can give suggests some implications about strategies to provide a remedy to the side-effects of NPM models for public service More specifically, the present study provides several theoretical and policy implications for organizational culture and PSM First, this study contributes to elaborating the relationship between organizational culture and PSM by employing four different types of culture from the CVF and considering the possible mediating role of adhocracy culture Since Perry (1997) identified the significant antecedents of PSM, several studies have attempted to specify and find other antecedents (Chen et al., 2013; Houston, 2000; Park and Rainey, 2008) In doing so, certain values such as trust and autonomy were identified as having significant effects on PSM However, the organizational culture role related to PSM has not been fully examined compared to studies exploring the relationship between diverse types of cultures and work motivations Moreover, Perry and Hondeghem (2008) pointed out that the results of Moynihan and Pandey's (2007b) non-significant findings in that study might not be definitive and suggested that organizatioanl culture might have indirect relationship with PSM through moderating or mediating Taking up the opiniones of previous studies, this study explored the relationship between specific types of culture and PSM directly and indirecly and then find the significant relationships Second, this study expands knowledge about the characteristics of adhocracy culture by bridging POB and adhocracy culture Some types of values such as self-efficacy and benevolence were employed to explore how they might affect employee attitudes (Cho and Perry, 2011; Moynihan and Pandey, 2007a) POB can be expanded to explore the role of cultures, which have potential impacts on the relationship between positive or negative cultures and employee attitudes (e.g., Dutton et al., 2006; Luthans et al., 2008) It also contributes to developing a logic of why autonomy or autonomy-supportive culture has a positive effect on employee attitudes or plays a mediating role These results imply that POB, specifically positive psychology capital approach, can work usefully when researchers and public actors make plans to foster public employees' attitudes without changing existed structures or institutions Third, the results support the Korean government efforts are appropriate to run executive agencies and provide some implications for developing policies to run public organizations As we mentioned before, the NPM reforms have been challenged by theory and practice because of its diverse negative effects on organizations and employees In this context, the Korean governments has continuously developed plans and apply them to the executive agencies Main KOREAN COMPARATIVE GOVERNMENT REVIEW Vol 26, No 58 goals of plans are the improvement of autonomy in diverse areas such as budget, personnel management, and the term of head The efforts of the Korean governments illustrate strengthening competition organizations and the significance and employees, of business cultivating adhocracy model give adhocracy culture harmful culture can Although effects on prevent or diminish the negative or side effects stemming market values In sum, improving adhocracy culture as shown in the findings and recent efforts of the Korean government can provide useful insights to ongoing controversy of NPM approach, because addressing adhocracy culture can prevent or reduce the side-effects of the market-type reforms and thus help policy makers avoid controversial and massive institutional reforms Despite the theoretical and policy implications above, some limitations to this study should be acknowledged First, the use of the self-reported survey for all variables can cause common method bias Harman's single-factor test is employed to test for and prevent common method bias Although such bias is not found, caution should be used when interpreting the 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Exploring the effects of interorganizational and interpersonal trust on performance Organization Science, 9(2): 141-159 Received March 4, 2022 Revised March 15, 2022 Accepted March 16, 2022 ... the extent to which adhocracy culture plays a mediating role in the Organizational Culture and Public Service Motivation in Executive Agencies: Mediating 57 Role of Adhocracy Culture ... improvement of public service delivery Executive agencies have been still running as Organizational Culture and Public Service Motivation in Executive Agencies: Mediating 51 Role of Adhocracy Culture. .. negatively, and significantly related to PSM and adhocracy culture ( = -.156, = -.597) Organizational Culture and Public Service Motivation in Executive Agencies: Mediating 55 Role of Adhocracy Culture