This research project examines how managers in local-government-owned business organisations justify their adoption of an entrepreneurial orientation and their interpretation of their role in entrepreneurial terms. To explore these justifications, interviews were conducted with the senior management of four local-government- owned business operations and one local council. They were: Metrowater, The Edge, Taieri Gorge Railway, Chatham Islands Council and Chatham Islands Enterprise Trust. These interviews were then analysed, utilising a critical discourse method. In addition, interviews were also conducted with senior managers in the Rotorua District Council and Taupo District Council who provided a sharp contrast to the former organisations and suggested a means by which the neo-liberal approach within the sector might be countered.
Through speaking with the various local government business managers contacted for this project, I concluded that managers of local-government-owned business operations have a strong institutional identification with the private sector. This identity is so strong that many of the managers interviewed have rejected the very notion that they are public employees of any sort. The managers have adopted an entrepreneurial approach because they see this as essential to gain professional legitimacy with their peers in the private sector. This has caused them to place distance between themselves and the owners of the business that they manage (that is, the councils), and the local citizens they ostensibly serve, to the extent that they have described their job as providing goods and services to customers rather than providing services for citizens. I will show that the adoption of such an attitude is inappropriate when placed within the context of local-government-owned and operated business concerns.
From the point of view of European settlement, New Zealand is a very young country, especially in the administrative sector. To provide a background to this project and to suggest the main lines of development of local government in New Zealand, I have included a prologue that outlines the history of local government in New Zealand.
