Lim, J N and Ofori, G (2007) Classification of innovation for strategic decision making in construction businesses. Construction Management and Economics, 25(9), pp. 963-978. ISSN 1466433X
Abstract
Innovations in construction may be classified in several different ways. To encourage construction firms in Singapore to innovate, a practical approach is provided for the classification of innovations, in order to guide construction firms in their development of innovation strategies. A qualitative systems model, portraying the innovation behaviour of contractors, is developed and validated through Pearson correlation analysis and interviews. From interviews with 21 construction practitioners, the profit maximization goals of construction firms are shown to be a major driving force of innovation. Construction innovation should be classified in accordance with the types of benefits and returns that emerge from them, which makes the investment of money and effort in innovation worthwhile. Three classes of innovations were identified: innovations that consumers are willing to pay for; innovations that reduce contractors' construction costs; and innovations that encompass intangible benefits, thus providing contractors with competitive advantage.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | innovation; profit maximization; systems thinking; willingness to pay |
| Index terms: | innovation strategy, Singapore, competitive advantage, construction cost, correlation analysis, decision-making, construction innovation, willingness to pay, interview, systems thinking, maximization, construction firm, construction practitioner, profit |
| Subjects: | financial and cost management, analytical methods, economic analysis, business, organization, data collection methods, price determination, statistical analysis, building construction, decision analysis, market analysis, professional development, Geography, algorithms |
| Topics: | Digital Applications, Cost Management, Business Strategy, Research Practice, Geographical Context, Information Management, Engineering Principles, Risk Management, Procurement |
| Descriptive scope: | 4 PCEA |
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