Abstract
This paper analyses antecedent behaviour impacting successful organisational outcomes of public sector reform in local government by applying structural equation modelling to 410 observations from civil servants in public agencies in Dong Nai province, Vietnam. The findings demonstrate that flexibility to change, transformational leadership, and innovation-driven culture positively impact public sector outcomes. In addition, managers' leadership capacity in transformative periods motivates their followers to behave creatively and innovatively. The results also imply that innovation culture is positively enhanced by flexible work practices, creative civil servants, and transformational leadership. Lastly, the paper presents dimensions of employee creativity and provides recommendations to supervisors for enriching a creative and innovative environment during the reform of local government.
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