The Recipe for Successful Employee-Driven Innovation in a Public Sector Context – With Onions & Eggs

Abstract

This thesis explores how Employee-Driven Innovation (EDI)
unfolds within Swedish municipal organizations and
identifies how EDI is managed and structured, and what
kind of innovations that are created in such organizational
environments. While innovation is increasingly emphasized
in the public sector, this study reveals that its practice is far
from uniform. Through qualitative studies of three
municipalities, MA, MB, and MC, the research highlights
that successful EDI is not solely a result of formal strategies
or tools but emerges through everyday interactions,
psychological safety, and leadership that is adaptive and
relational. The findings show that municipalities with a well-
developed ability to work systematically with innovation
combine formalized processes with informal support
mechanisms, such as trust-building and internal networks.
This approach helps strengthen the organization’s internal
identity, increase employee engagement, and improve the
quality of public services. In contrast, organizations that
treat innovation as small, stand-alone improvements, rather
than as part of a broader strategy, often lack a clear and
shared innovation direction, which limits the potential for
lasting impact. By drawing on theories of ambidextrous
leadership, psychological safety and brand management,
the thesis contributes a human-centered model of public
innovation, one that balances structure with flexibility and
places employees at the heart of change. The study offers
practical insights for public managers aiming to build
resilient, learning-oriented organizations capable of
navigating complex societal challenges.

Popular Abstract

What could a shakshuka – that spicy mix of eggs, onions, and tomatoes – possibly have in common with my thesis on employee-driven innovation? More than you'd think. Both rely on the right ingredients, patience, and the courage to stir things up. Curious? Take a seat – this is a story about everyday innovation in Sweden’s public sector.

Imagine working at your local municipality. You notice a way to improve a service, cut down bureaucracy, or simply make things work better for colleagues and citizens. But will anyone listen? And even if they do – is there a process in place to help ideas turn into reality?
That’s what my thesis explores. I studied how three Swedish municipalities approach employee-driven innovation (EDI) – the idea that the best improvements often come from those closest to the problems. Through interviews, internal documents, and real-world examples, I mapped how ideas emerge, develop, and (sometimes) make a difference.
The results are clear: supportive leadership, psychological safety, and clear structures are essential. In organizations where leaders encourage experimentation, allocate time and resources, and actively follow up on ideas, innovation thrives. But even the most motivated employees can’t drive change if they’re constantly met with vague strategies, limited budgets, or no clear place to submit their ideas.
In one municipality, a team set out to improve the application process for social services. They held workshops, brought in user representatives, and redesigned the entire system to make it smoother and more humane. What began as a local initiative led to faster decisions and fewer errors – and, more importantly, a more dignified experience for citizens.
My research also reveals some interesting contrasts. One municipality had a dedicated innovation lab and structured tools. Another avoided the word “innovation” altogether and talked about “improvements” instead. In some departments, innovation is formalized and budgeted. In others, it’s something that happens in hallway chats or staff meetings.
But across all cases, one insight stands out: when employees are trusted and supported, they take ownership. They see themselves not just as implementers, but as co-creators of better public services. EDI is not just about new apps or systems – it’s about people who care, and organizations that dare.
So, what’s the link between my thesis and a shakshuka? Both require combining the right ingredients, a willingness to experiment and a touch of heat. Innovation, like cooking, works best when it’s shared – and when someone’s bold enough to stir the pot.

• author: Friberg, Michelle
• supervisor: Izabelle Bäckström
• organization: Department of Mechanical Engineering Sciences; Production Management
• course: MIOM05 20241
• year: 2025
• type: H2 - Master's Degree (Two Years)
• subject: Technology and Engineering
• keywords: Employee-Driven Innovation (EDI), Public Sector Innovation, Psychological Safety, Ambidextrous Leadership, Municipal Branding, Innovation Processes, Bottom-Up Innovation, Digital Tools
• other publication id: 25/5327
• language: English
• id: 9204446
• date added to LUP: 2025-06-23 14:09:54
• date last changed: 2025-06-23 14:09:54