TECHNICAL PAPERS
Apr 30, 2009

Relationship between Construction Firm Strategies and Innovation Outcomes

Publication: Journal of Construction Engineering and Management
Volume 135, Issue 8

Abstract

Survey results provide a preliminary assessment of the relative contribution of a range of tactical business strategies to innovation performance by firms in the Australian construction industry. Over 1,300 firms were surveyed in 2004, resulting in a response rate of 29%. Respondents were classified as high, medium or low innovators according to an innovation index based on the novelty and impact of their innovations and their adoption of listed technological and organizational advances. The relative significance of 23 business strategies concerning (1) employees; (2) marketing; (3) technology; (4) knowledge; and (5) relationships was examined by determining the extent to which they distinguished high innovators from low innovators. The individual business strategies that most strongly distinguished high innovators were (1) investing in R&D; (2) participating in partnering and alliances on projects; (3) ensuring project learnings are transferred into continuous business processes; (4) monitoring international best practice; and (5) recruiting new graduates. Of the five types of strategies assessed, marketing strategies were the least significant in supporting innovation. The results provide practical guidance to managers in project-based industries wishing to improve their innovation performance.

Get full access to this article

View all available purchase options and get full access to this article.

Acknowledgments

This paper arose from the Building Research Innovation Technology and Environment (BRITE) Project funded by the Australian Cooperative Research Centre for Construction Innovation.

References

Australian Bureau of Statistics (ABS). (1997). Innovation in industry, survey, ABS, Canberra.
Australian Bureau of Statistics (ABS). (2006). Innovation in Australian business, 2003 (Reissue), Cat. No. 8158.0, ABS, Canberra.
Australian Bureau of Statistics (ABS). (2007). Special data request based Innovation in Australian business, 2005, Cat. No. 8158.0, ABS, Canberra.
Anderson, F., and Schaan, S. (2001). Innovation, advanced technologies and practices in the construction and related industries: National estimates, Statistics Canada/National Research Council of Canada, Canada.
Barlow, J. (2000). “Innovation and learning in complex offshore construction projects.” Res. Policy, 29(7–8), 973–989.
Barlow, J., and Jashapara, A. (1998). “Organizational learning and inter-firm partnering in the UK construction industry.” Learn. Organ. Int. J., 5(2), 86–98.
Barney, J., Wright, M., and Ketchen, D. Jr., (2001). “The resource-based view of the firm: Ten years after 1991.” J. Manage. Account. Res., 27(6), 625–641.
Blayse, A., and Manley, K. (2004). “Key influences on construction innovation.” Constr. Innovation, 4(3), 1–12.
Bowns, S., Bradley, I., Knee, P., Williams, F., and Williams, G. (2003). “Measuring the economic benefits from R&D: Improvements in the MMI model of the United Kingdom National Measurement System.” Res. Policy, 32(6), 991–1002.
Burgelman, R. A., Christensen, C. M., and Wheelwright, S. C. (2004). Strategic management of technology and innovation, McGraw-Hill Irwin, Boston.
Citrin, A., Lee, R., and McCullough, J. (2007). “Information use and new product outcomes: The contingent role of strategy type.” J. Prod. Innovation Manage., 24(3), 259–273.
Cohen, W., and Klepper, S. (1996). “A reprise of size and R&D.” Econom. J., 106(437), 925–951.
Commonwealth Department of Industry, Science and Resources, Australia (DISR). (2004). Building and Construction Industries Action Agenda Evaluation Report, DISR, Canberra.
Davenport, S. (2005) “Exploring the role of proximity in SME knowledge-acquisition.” Res. Policy, 34(5), 683–701.
Drejer, I., and Vinding, A. (2006). “Organization, ‘anchoring’ of knowledge, and innovative activity in construction.” Constr. Manage. Econom., 24(9), 921–931.
Egan, J. (1998). Rethinking construction, Dept. for Environment, Transport and Regions, London.
Fairclough, J. (2002). Rethinking construction innovation and research, Dept. of Trade and Industry, London.
Galbraith, C., and Schendel, D. (1983). “An empirical analysis of strategy types.” Strategic Manage. J., 4(2), 153–173.
Gann, D., and Salter, A. (2000). “Innovation in project-based, service-enhanced firms: The construction of complex products and systems.” Res. Policy, 29(7–8), 955–972.
Hardie, M., Miller, G., Manley, K., and McFallan, S. (2005). “Experience with the management of technological innovations within the Australian construction industry.” Proc. PICMET ‘05 Conf., PICMET, Ore.
Hartmann, A. (2006). “The context of innovation management in construction firms.” Constr. Manage. Econom., 24(6), 567–578.
Keast, R., and Hampson, K. (2007). “Building constructive innovation networks: Role of relationship management.” J. Constr. Eng. Manage., 133(5), 364–373.
Kumaraswamy, M., and Dulaimi, M. (2001). “Empowering innovative improvements through creative construction procurement.” Eng., Constr., Archit. Manage., 8(5–6), 325–335.
Love, P., Irani, Z., Cheng, E., and Li, H. (2002). “A model for supporting inter-organizational relations in the supply chain.” Eng., Constr., Archit. Manage., 9(1), 2–16.
Malerba, F., and Marengo, L. (1995). “Competence, innovative activities and economic performance in Italian high-technology firms.” Inf. Technol. Manage., 10(4–6), 461–477.
Manley, K. (2003). “Frameworks for understanding interactive innovation processes.” Int. J. Enterpren. Innovat., 4(1), 25–36.
Manley, K. (2006). “The innovation competence of repeat public sector clients in the Australian construction industry.” Constr. Manage. Econom., 24(12), 1295–1304.
Manley, K., and McFallan, S. (2006). “Exploring the drivers of firm-level innovation in the construction industry.” Constr. Manage. Econom., 24(9), 911–920.
Miles, R., and Snow, C. (1978). Organizational strategy, structure and process, McGraw-Hill, New York.
Miozzo, M., and Dewick, P. (2002). “Building competitive advantage: Innovation and corporate governance in European construction.” Res. Policy, 31(6), 989–1008.
Nam, C., and Tatum, C. (1997). “Leaders and champions for construction innovation.” Constr. Manage. Econom., 15(3), 259–270.
The Organization for Economic Co-operation and Development (OECD). (2000). A new economy? The changing role of innovation and information technology in growth, OECD, Paris.
The Organization for Economic Co-operation and Development (OECD). (2005). Guidelines for collecting and interpreting technological innovation data. Oslo manual, OECD, Paris.
Pattinson, B. (2002). Developing a strategy for innovation statistics. Australian bureau of statistics, working paper, May 16th, Australian Bureau of Statistics, Canberra.
Porter, M. (1980). Competitive strategy, Free Press, New York
Porter, M. (1996). “What is strategy?” Harvard Bus. Rev., 74(6), 61–78.
Powell, W. (1998). “Learning from collaborations: Knowledge and networks in the biotechnology and pharmaceutical industries.” California Manage. Rev., 40(3), 228–240.
Prahalad, C., and Hamel, G. (1990). “The core competence of the corporation.” Harvard Bus. Rev., 68(3), 79–91.
PriceWaterhouseCoopers (PWC). (2002). Innovation in the Australian Building and Construction Industry: Survey Rep., Australian Construction Industry Forum, Canberra.
PriceWaterhouseCoopers (PWC). (2003). Innovation, PWC Global Services, London.
Schumpeter, J. (1943). Capitalism, socialism and democracy, Allan and Unwin, London.
Seaden, G., Guolla, M., Doutriaus, J., and Nash, J. (2001). Analysis of the survey on innovation, advanced technologies and practices in the construction and related industries, 1999 Research Paper 88F0017MIE No. 10, National Research Council of Canada/Statistics Canada, Canada.
Seaden, G., Guolla, M., Doutriaus, J., and Nash, J. (2003). “Strategic decisions and innovation in construction.” Constr. Manage. Econom., 21(6), 603–612.
Seaden, G., and Manseau, A. (2001). “Public policy and construction innovation.” Build. Res. Inf., 29(3), 182–196.
Sexton, M., and Barrett, P. (2003). “A literature synthesis of innovation in small construction firms: Insights, ambiguities and questions.” Constr. Manage. Econom., 21(6), 613–620.
Slaughter, E. (1998). “Models of construction innovation.” J. Constr. Eng. Manage., 124(3), 226–231.
Smith, K. (2005). “Measuring innovation.” The Oxford handbook of innovation, J. Fagerberg, D. Mowery, and R. Nelson, eds., Oxford University Press, Oxford, 148–179.
Solow, R. (1956). “A contribution to the theory of economic growth.” Q. J. Econ., 70(1), 65–94.
Walsh, S., and Linton, J. (2002). “The measurement of technical competencies.” J. High Tech. Manage. Res., 13(1), 63–86.
Winch, G. (1998). “Zephyrs of creative destruction: understanding the management of innovation in construction.” Build. Res. Inf., 26(4), 268–279.

Information & Authors

Information

Published In

Go to Journal of Construction Engineering and Management
Journal of Construction Engineering and Management
Volume 135Issue 8August 2009
Pages: 764 - 771

History

Received: May 19, 2008
Accepted: Jan 12, 2009
Published online: Apr 30, 2009
Published in print: Aug 2009

Permissions

Request permissions for this article.

Authors

Affiliations

Karen Manley [email protected]
Deputy Director-Research, Project Management Academy, Queensland Univ. of Technology, GPO Box 2434, Brisbane Qld 4001, Australia (corresponding author). E-mail: [email protected]
Steve McFallan [email protected]
Statistical and Modeling Researcher, Sustainable Eco Systems, Commonwealth Scientific Industrial Research Organization, Queensland Bioscience Precinct, Univ. of Queensland, St. Lucia 4067, Australia. E-mail: [email protected]
Stephen Kajewski [email protected]
Director, Project Management Academy, Queensland Univ. of Technology, GPO Box 2434, Brisbane Qld 4001, Australia. E-mail: [email protected]

Metrics & Citations

Metrics

Citations

Download citation

If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.

Cited by

View Options

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Media

Figures

Other

Tables

Share

Share

Copy the content Link

Share with email

Email a colleague

Share