Wennstroem, A; Havenvid, M I; Eriksson, P E and Larsson, J (2023) Incentivising supplier innovation in mega infrastructure projects: Exploring the result of innovation bonuses. In: Tutesigensi, A and Neilson, C J (eds.) Proceedings of 39th Annual ARCOM Conference, 4-6 September 2023, University of Leeds, Leeds, UK.
Abstract
Prior research emphasizes that public clients need to use their client role and their procurement strategies to facilitate supplier innovation to accelerate sustainable development of the built environment. The purpose of this paper is to increase the understanding of Swedish Traffic Administration (STA), as the largest public client of infrastructure in Sweden, implementation of procurement strategies may influence supplier innovation. This paper explores an initiative by the STA to promote supplier innovation through offering innovation bonuses to four engineering consultancy firms, contracted for the early planning and design stage of the East Link mega project. The study is based on secondary data from STA's documentation of 51 innovation proposals submitted by the four firms. The result indicates that while innovation bonuses generate proposals of supplier innovation, public clients carefully need to consider how to formulate appropriate incentives and reward systems for specific windows of opportunity.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | innovation; procurement; incentivisation; public client |
| Index terms: | documentation, built environment, Sweden, sustainable development, infrastructure project, consultancy, public client, proposal, reward system, procurement strategy, incentivization, design stage, implementation, window, secondary data |
| Subjects: | professional development, health safety and environment, contractual arrangements, management, architectural elements, professional practice, project planning, sociology, infrastructure and transport systems, risk assessment, Geography, data collection methods, organization |
| Topics: | Urban Studies, Geographical Context, Procurement, Human Resources, Health and Safety, Project Management, Information Management, Engineering Principles, Organizational Design, Design Practice, Stakeholder Management, Research Practice, Risk Management |
| Descriptive scope: | 3 PCE |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here