Yusof, N; Lai, K S and Marisa, A (2022) Influences of client focus and company type on innovation and financial performance in the construction industry. Construction Innovation, 22(4), pp. 749-767. ISSN 1471-4175
Abstract
Purpose: As innovation has been recognised as important in improving construction company performances, this study aims to determine the effects of client focus and company type on innovation and company financial performances. Design/methodology/approach: A self-administered questionnaire was sent to 300 architectural and contractor companies and 163 (54.3%) were returned. The questionnaire data were analysed using a partial least squares structural equation modelling. Findings: Client focus was found to have a complementary partial mediation effect on the relationships between innovation and company financial performance and that innovation independently affected company financial performance with the influence being stronger in the architecture companies than in the contractor companies. Research limitations/implications: The study adopted a broad definition for innovation without considering the innovation types. As different types of innovation require distinct knowledge, skills, capabilities and management practices, future studies could investigate the various types of innovation and their effects on financial performance. Practical implications: The findings provide valuable suggestions for principals, top management and policymakers on the importance of client focus when developing and disseminating innovation within the company. Also, architecture companies should focus on implementing innovation to stay competitive. Originality/value: The mediating effects of client focus and the moderating effects of company type were simultaneously analysed on the relationship between innovation and financial performance.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | client focus; company type; construction industry; financial performance; innovation; mediation-moderation |
| Index terms: | mediation, structural equation modelling, construction company, financial performance, top management, management practice, methodology, questionnaire, partial least square, construction industry, future study |
| Subjects: | statistical analysis, industry analysis, research methods, business analysis, management, dispute resolution, research design and methodology, organization, data collection methods |
| Topics: | Research Practice, Business Strategy, Organizational Design, Legal Issues |
| Descriptive scope: | 4 PCTA |
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