Implementation of innovation on construction projects: A behavioral perspective

As a leverage to improve the productivity and to gain competitive advantage, the concept of innovation has been evolving as an additional dimension in construction apart from the cost, quality and time factors. However, owing to the very nature of the industry and production practices, the rate of innovation in construction is reported to be slower than expected. This research study considered that the source of the problem of the low rate of innovation in construction could be traced within the bounded behavior of the construction firms especially at the production (project) level. The fundamental questions of, 'why' the construction firms would initiate and implement innovation and 'how' the firms would behave and interact during the initiation and implementation process, were studied to understand the firms' bounded behavior. A theoretical framework was prepared on the basis of organizational motivation and inter-organizational interaction theories to depict the implementation process of innovation on construction project. First, questionnaire survey and statistical analysis tools were used to test the framework. However, later three case studies were used to inquire into the framework. A systems thinking approach based feedback loop model was also developed to study the relevant modes of behavior of the three cases. Analyzing with the process framework and the feedback loop dynamic model, it was found that there could be four key underlying forces; namely, the expected goal driven forces, the result driven instrumental forces, the inter-organizational interaction forces, and the intra-organizational interaction forces that would influence the behavior of and interactions among the relevant parties during implementation of innovation. Based on the probable influence on the four key forces, the following five areas of strategic leverage were recommended: (i) importance of the expected goals, (ii) role of the client, (iii) long term relationships between the parties, (iv) contract design, and (v) preparation and deployment of project unit. Conscious consideration of these strategic areas would be helpful in effective implementation of innovation on construction projects.