Investigating the Components of Innovation in Construction Projects

Abstract

Innovation has been regarded as a means of improving performance in construction. Despite its benefits, management of innovation is a difficult task and its measurement is complicated. A comprehensive model comprising interrelated components of construction innovation has not yet been developed and tested. The major objective of this research is to propose a framework to analyze construction innovation. In this respect, a total of 38 factors associated with innovation are identified and grouped under six components, namely the drivers, barriers, enablers, inputs, project-level benefits, and firm-level benefits. The interrelations among these components are examined through a questionnaire survey. Data collected from 110 projects were analyzed using structural equation modeling. The findings of the study suggest that the innovation decision is governed by those factors specified as the drivers; investment in innovation results not only in project-level but also firm-level outcomes; however, the hypothesized negative impact of barriers has not been found to be significant. The findings also reveal that innovation has major benefits such as increases in productivity and client satisfaction at the project level, improvement of company image, improvement of technical and managerial capability, and gaining experience at the firm-level. Research findings are expected to help project managers in construction business devise proper strategies to effectively implement innovation.