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Innovation in small construction knowledge-intensive professional service firms: a case study of an architectural practice

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  • Shu-Ling Lu
  • Martin Sexton

Abstract

Small construction knowledge-intensive professional service firms (SCKIPSFs) are becoming increasingly important agents of innovation within the construction industry. The nature and process of innovation in SCKIPSFs, however, is generally considered through the constraining prism of research results generated from significantly different contexts, such as from manufacturing sectors or non-project based firms. A theory of innovation for SCKIPSFs is developed from a longitudinal 22-month case study of a small architectural practice. Two forms of knowledge-based innovation were discerned from the empirical work: exploitative innovation and explorative innovation. 'Explorative innovation' was found to be located in immediate 'new' project domains, and entailed search, variation, experimentation, activity to solve project-specific problems; while 'exploitative innovation' concentrated on developing generic organisational infrastructure to 'refine' and 'improve the efficiency' of the firm operations to nurture capability for future activity. The key challenge for SCKIPSFs is to develop and manage an appropriate balance between explorative and exploitative innovation over time in order to generate sustainable competitive advantage.

Suggested Citation

  • Shu-Ling Lu & Martin Sexton, 2006. "Innovation in small construction knowledge-intensive professional service firms: a case study of an architectural practice," Construction Management and Economics, Taylor & Francis Journals, vol. 24(12), pages 1269-1282.
    • Handle: RePEc:taf:conmgt:v:24:y:2006:i:12:p:1269-1282
    DOI: 10.1080/01446190600879109
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    Cited by:

    1. Chen, Xiaoyan & Locatelli, Giorgio & Zhang, Xinyue & Gong, Yunhao & He, Qinghua, 2022. "Firm and project innovation outcome measures in infrastructure megaprojects: An interpretive structural modelling approach," Technovation, Elsevier, vol. 109(C).
    2. Dengke Yu & Jay Yang, 2018. "Knowledge Management Research in the Construction Industry: a Review," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(3), pages 782-803, September.
    3. Satu Reijonen & Rebecca Pinheiro-Croisel, 2012. "The dynamics of innovation influents: contracts and sustainable energy innovation uptake," Post-Print halshs-00743386, HAL.
    4. Aksel Ersoy, 2016. "Impact of Accessibility and Knowledge Creation on Local and Regional Development in Turkey," Growth and Change, Wiley Blackwell, vol. 47(4), pages 648-663, December.

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