Influences on innovation in small Australian construction businesses (original) (raw)

Vectors of technical innovation delivery by small and medium Australian construction firms

Construction Economics and Building, 2016

Long-established Schumpeterian theory on innovation assumes that significant innovations are generated by large companies with ample spare resources. The allocation of time and money to speculative endeavours with unclear outcomes has often been regarded as beyond the scope of small and medium-sized enterprises (SMEs). As a result, authorities sometimes advise SMEs to concentrate on the adoption of existing innovative products and processes rather than the generation of new creative ideas. Despite this traditional wisdom, some very capable individuals actively choose to participate in the SME sector because the relative absence of internal bureaucratic processes and the capacity for agile response to changing circumstances. Ten case studies of significant technical innovations generated within construction SMEs were examined in the light of common themes identified through a literature review. The case studies were classified according to existing taxonomies of innovation. Content a...

Innovation and small residential builders: an Australian study

Construction Innovation, 2009

PurposeThrough investigating the innovation‐adoption process in smaller construction industry firms, this paper aims to ascertain the drivers of innovation in Australian small residential building firms, and determine how such firms develop or adopt innovations. The research thus provides a more thoroughly nuanced understanding of the innovation‐adoption process within these firms.Design/methodology/approachThe research described in this paper was conducted among small residential housing contractors in South‐East Queensland, Australia. This was undertaken by means of a semi‐structured interview process, based on a questionnaire requesting information from owners or managers.FindingsInnovation in this sector is driven by general business concerns pertaining to maintaining overall competitiveness rather than specific client needs. The same firms also utilize supply‐chain relationships and broader industry associations as sources of external knowledge. Despite this, better pathways to...

Enabling factors for innovation by small contractors

2008

The inbuilt flexibility of small business can be one of its most effective assets. Despite this, the factors that actually enable small construction businesses to deliver innovation are diverse. In order to shed light on the processes involved, case study interviews were conducted with the proponents of recognised successful innovations. It was found that these proponents had close relationships with industry bodies covering their particular area of construction. These relationships were instrumental in enabling the small businesses to keep up with new developments. The industry bodies were also able to provide contacts and support during the establishment period of the innovation adoption. Furthermore, the successful innovators were likely to have formed consultative relationships with research bodies. The innovators found these relationships useful for independent testing purposes or for verification of internally-generated results. Community and individual goals were also shown to be a spur to the development and delivery of innovations.

Factors influencing technical innovation in construction SMEs: an Australian perspective

Engineering, Construction and Architectural Management, 2011

Purpose-The intent of this research is to determine whether any common lessons can be drawn from the experience of individuals who have gone against the trend and delivered successful technical innovations in construction small and medium enterprises (SMEs). Design/methodology/approach-A value tree of contributing factors to technical innovation was developed from the literature and tested by surveying established technical innovators using analytic hierarchy process methodology. This approach aimed at capturing the experience of company decision makers who manage to deliver successful change with limited resources. Findings-The results reveal the importance of supportive clients and performance-based building standards for innovative practice in construction. Significant differences were observed between small and medium-sized companies and between product and process innovators. Research limitations/implications-In order to avoid a skewed sample, considerable effort was made to ensure that all survey participants had significant peer recognition as innovators. A high response rate (75 percent) from the target group also contributed to the reliability of the sample. Social implications-Industry employment rates and profitability are both positively correlated with high rates of innovation in many industries. Innovative solutions to environmental and social problems have potential benefits for the future direction of the construction industry, which is perceived as lagging somewhat in these areas. Originality/value-The paper provides suggestions for managers of construction firms who wish to improve innovation performance rates by studying the insights of successful innovators in their field.

Innovation in Small, Project-Based Construction Firms

British Journal of Management, 2006

Relevant literature is synthesized to provide a holistic picture of our current knowledge of innovation in small, project-based firms, highlighting significant gaps in the broad areas of 'focus and outcome', 'organizational capabilities', 'context' and 'process'. Research findings from fieldwork focused on the construction industry are offered to address these gaps. In particular, a consensus model is given of the organizational factors dynamically at play. It is shown that typically the innovations of small, projectbased firms are closely tied to their operational activities and are pushed forward by owners who utilize very scarce resources to make progress in the interstices of normal business. This leads to an emphasis on taking up established technologies through 'learning on the job'. Growth per se is not an important target. The motivation to act is generally to get past a survival mode of operating and to achieve stability by satisfying clients. These characteristics contrast with large organizations, especially in terms of the role of the owner, the close focus on niche markets and the lack of slack resources to innovate in parallel with normal business. It is hoped that these results will be of interest to other sectors where small, project-based firms operate.

Demonstrating the benefits of construction innovation

2005

The construction industry needs to achieve greater efficiency and effectiveness. However, change is not readily embraced by the industry. This resistance to change compromises innovation performance, and negatively impacts client and industry goals. One of the key reasons for relatively poor construction industry performance is scepticism about the potential benefits of innovation, particularly among small and medium-sized businesses. This paper investigates the links between innovation and project performance, with a view to demonstrating the benefits that can be achieved. It offers case study evidence of the tangible, monetary benefits of innovation to businesses. The paper is based on innovation case studies in the Australian construction industry undertaken in 2003. It concludes with a discussion of the distribution of innovation benefits and the impact on incentive structures. In future research the results will be interpreted more widely, by undertaking a comprehensive integrative analysis of existing academic literature on construction innovation benefits.

Exemplars of successful innovation delivery by small and medium construction enterprises

Clients driving construction innovation: …, 2008

Small and Medium Enterprises (SMEs) make up the great bulk of construction industry companies, however, it is widely reported that such firms are less likely to successfully deliver innovations than their larger counterparts. This may be due to the real pressure of simply surviving in a very competitive economy or to a perceived lack of spare capacity to devote to new ideas. Despite these difficulties, some SMEs are able to meet the challenge and to generate and deliver technological innovations of considerable originality. In order to shed light on how this is possible, case study interviews were undertaken with the proponents of recognised successful innovations. Some common success factors were observed: close relationships with industry and professional bodies covering the innovators' particular areas of construction; strong priority on networking within the industry generally; and consultative, two way relationships with research bodies and industry regulators. Community and individual goals such as environmental sustainability and industrial safety were also significant motivating factors for successful innovators.

Assessing construction innovation: theoretical and practical perspectives

Innovation is key for productivity improvement and advancements in different sectors of the economy, including the construction sector. The criticism of the slow pace of innovation in construction industry may be unwarranted, considering the structure of the industry and nature of the construction business. The loosely coupled nature of firms, mostly Small and Medium Enterprises (SME's), delivering 'projects' through partial engagement, together with the distinction between the project innovation and firm innovation makes it difficult to extract innovations in a meaningful way. The problem also lies in conceptualising, defining, articulating and assessing innovation in construction. The literature is replete with research into construction innovation, however, there is limited research into understanding how innovation is perceived and narrated in practice. The paper aims to explore how innovation is assessed and narrated in construction, specifically analysing theory and practice perspectives. A theoretical model was constructed from a structured literature review illustrating existing discourse and narratives of construction innovation assessment. A qualitative analysis of 'Professional Excellence in Building' submission documents to the Australian Institute of Building was performed to identify the practice perspective of innovation. The findings suggest that internal organizational and process innovation account for the majority of improvements identified. Importantly a taxonomy of narrative is developed that articulates how the construction industry in Australia views industry innovation.

NINE INNOVATION BARRIERS IN AUSTRALIAN CONSTRUCTION CONTRACTING

Proceedings of the 30th Annual Conference of the International Group for Lean Construction, 2022

The Australian construction industry ranks below average in intellectual property and software creation value compared to other sectors. The innovation performance of the built environment contractors is well chronicled. Importantly, these organisations have the most time and cost risk of all stakeholders. Therefore, improvements should have significant benefits to them and their customers. However, their innovation efforts face significant economic, regulatory and market barriers that are stubborn. This paper asserts that these sector characteristics slow the creation of novel products, services, and information technology more than most major industries. Overcoming these invention barriers should enable faster innovation and more significant improvement. This paper outlines the nine most significant innovation barriers researched by the author in Australian construction contracting and suggests potential solutions. Addressing the seminal reasons for the lack of invention should decrease the impact of these obstacles leading to a better system and culture of innovation, thereby producing better industry performance. The relationship between construction organisation characteristics and industry innovation is relatively unexplored.