Links between Successful Innovation Diffusion and Stakeholder Engagement

Abstract

Stakeholders can positively assist or hinder attempts at innovation. Much depends on the nature of their engagement. The stakeholder engagement process can be complex and unpredictable, more so if no strategic plan is put in place or if no systematic thinking is invested in the innovation. Stakeholder engagement in the innovation process in general and innovation diffusion in particular is examined in the context of construction. From a theoretical perspective, analysis of the effect of stakeholders could be expected to help in refining the innovation process so that it produces decisions and outcomes more likely to lead to successful innovation and diffusion. To cover diverse applications from product development to the drafting and implementation of national standards, 19 innovation projects were studied. Through a statistical analysis of stakeholder involvement, based on a Fisher’s exact test, it was concluded that a structured process of engagement has to be an integral part of the innovation process. Accordingly, an explicit plan for communication and engagement with identified key stakeholders is necessary ex ante as a condition for successful innovation and diffusion.