Innovation of Organizations in the Construction Industry: Progress and Performance Attributes

Abstract

Organizations can acquire a competitive advantage by managing effectively for today while simultaneously promoting innovation for the future. A recent review of the annual reports of large Architecture, Engineering, Construction, and Owner Operator (AECOO) organizations in the United States (US) have indicated that firms have been allocating more attention to innovation. Previous studies concentrated on viewing the performance and growth of firms based on resources and knowledge. Researchers in strategic management have recently expanded to consider an innovation-based view for studying innovation-induced growth of firms. In this article, we introduce a strategic framework to illustrate the management and transformation of innovation in AECOO organizations on the basis of an innovation-based view of the firm. To support the transformation process, we argue that innovation performance attributes can serve as a reference in the strategic planning process. In particular, we find that innovation should be oriented to the engagement of staff, framed around the organization’s strategies, and contributive to the impact of the organizations. The transformation process is effective when organizations reference these key performance attributes in their strategic framework.