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Strategic decisions and innovation in construction firms

Author

Listed:
  • George Seaden
  • Michael Guolla
  • Jerome Doutriaux
  • John Nash

Abstract

Current research on the process of innovation has focused attention on the crucial role of the business firm as the place where new ideas are developed and then implemented in the marketplace. Based on current knowledge, a model was developed which attempts to replicate the strategic decision-making process in a construction firm. It links perceived business environment variables to various business strategy variables (i.e. marketing, human resources and technology). These two sets of variables are linked to the innovativeness of the firm, measured by the number of advanced technologies and/or business practices currently used. Innovativeness is subsequently linked to outcomes (i.e. profitability, competitive advantage) to assess overall effectiveness. The model was tested empirically, using data from the Survey on Innovation, Advanced Technologies and Practices in the Construction and Related Industries carried out by Statistics Canada in 1999 with 1739 usable responses. The results generally support the proposed model; certain perceived business environment and business strategy variables are significantly related to firm innovativeness, however the link between innovativeness and outcomes requires further confirmation. Many construction firms introduce new approaches in information and construction technologies as well as in business practices. A large number of these were found to provide significant competitive advantage. In general, innovative behaviour varies with the size of the firm.

Suggested Citation

  • George Seaden & Michael Guolla & Jerome Doutriaux & John Nash, 2003. "Strategic decisions and innovation in construction firms," Construction Management and Economics, Taylor & Francis Journals, vol. 21(6), pages 603-612.
    • Handle: RePEc:taf:conmgt:v:21:y:2003:i:6:p:603-612
    DOI: 10.1080/0144619032000134138
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    Citations

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    Cited by:

    1. José Giménez & Antonia Madrid-Guijarro & Antonio Duréndez, 2019. "Competitive Capabilities for the Innovation and Performance of Spanish Construction Companies," Sustainability, MDPI, vol. 11(19), pages 1-24, October.
    2. Jan Bröchner, 2010. "Innovation in Construction," Chapters, in: Faïz Gallouj & Faridah Djellal (ed.), The Handbook of Innovation and Services, chapter 31, Edward Elgar Publishing.
    3. Manley, Karen, 2008. "Against the odds: Small firms in Australia successfully introducing new technology on construction projects," Research Policy, Elsevier, vol. 37(10), pages 1751-1764, December.
    4. Satu Reijonen & Rebecca Pinheiro-Croisel, 2012. "The dynamics of innovation influents: contracts and sustainable energy innovation uptake," Post-Print halshs-00743386, HAL.
    5. Butzin, Anna & Rehfeld, Dieter, 2008. "Innovationsbiographien in der Bauwirtschaft," Forschung Aktuell 10/2008, Institut Arbeit und Technik (IAT), Westfälische Hochschule, University of Applied Sciences.
    6. Priyadarshini Das & Amer A. Hijazi & Duncan W. Maxwell & Robert C. Moehler, 2023. "Can Business Models Facilitate Strategic Transformation in Construction Firms? A Systematic Review and Research Agenda," Sustainability, MDPI, vol. 15(17), pages 1-20, August.

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