Innovation in small construction firms

SPƠN RESEARCH

Innovation in Small

Construction Firms

Peter Barrett

Martin Sexton

Angela Lee

Thu Vlen DHKTCN-TN

KN V .14000715

Innovation in Small

Construction Firms

A ls o available from T a ylo r & F r a n cis

Construction the Future: nD Systems

G. Aouad et al. Hb: ISBN 97804153917 19

Innovation in Construction: an International Review of Public Policies

A Manseau et al. Hb: ISBN 978041S254786

Understanding Quality in Construction

H. Chung Hb: ISBN 9780419249S04

Understanding I.T. in Construction

M. Sun et al. Pb: ISBN 9780415231909

Introduction to Building Procurement Systems 2nd ed.

]. Masterman Hb: ISBN 9780415246415

Pb: ISBN 9780415246422

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Innovation in Small •

Construction Firms

Peter Barrett, Martin Sexton

and Angela Lee

ĐẠIHỌCTHẤỈ NGUYỀN

TRUNG TẮM HỌC LIỆU

TRƯ!?Níìí>rlHrC K ĩ CGN(ÌN(ÌHIẸP

T H I ỉ V íỆ M

P H Ổ N O Đ Ọ C

Taylor & Francis

Taỵlor & Prancis G roup

LONDON AND NEW YORK

0 0 QÇ%

n r

First published 2008

by Taylor & Francis

2 Park Square, Milton Park, Abingdon, Oxon O X 14 4RN

Simultaneously published in the USA and Canada

by Taylor & Francis

270 Madison Avenue. New York. N Y 10016, USA

Taylor & Francis is an imprint of the Taylor & Francis Group, an informa business

© 2008 Peter Barrett, Martin Sexton and Angela Lee

Typeset in Times New Roman by

Keystroke, 28 High Street, Tettenhall, Wolverhampton

Printed and bound in Great Britain by

TJ International Ltd., Padstow, Cornwall

All rights reserved. No part of this book may be reprinted or reproduced

or utilised in any form or by any electronic, mechanical, or other means,

now known or hereafter invented, including photocopying and recording,

or in any information storage or retrieval system, without permission in

writing from the publishers.

The publisher makes no representation, express or implied, with regard

to the accuracy of the information contained in this book and cannot

accept any legal responsibility or liability for any efforts or omissions that

may be made.

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

Library o f Congress Cataloging-in-Publication Data

Barrett, Peter, professor.

Innovation in small construction firms/Peter Barrett, Martin Sexton,

and Angela Lee.

p. cm.

Includes bibliographical references and index.

I. Construction industry— Research. 2. Construction industry—

Technological innovations. 3. Small business— Technological

innovations. I. Sexton, Martin, 1966- II. Lee, Angela, Ph. D. III. Title.

TH 2I3.5.B37 2008

690.068'4— dc22 2007024814

ISBN 10: 0—415-39390-6 (hbk)

ISBN 10: 0-203-93767-8 (ebk)

ISBN 13: 978-0—4 15-39390-4 (hbk)

ISBN 13: 978-0-203-93767-9 (ebk)

Contents

L ist o f illustrations

A cknow ledgem ents

IX

x

1 Introduction

Characteristics o f the construction industry 1

The UK construction industry 2

Why research innovation in SMEs? 6

Summary 9

1

2 Innovation dem ystified 10

Introduction 10

Innovation in construction 10

Generic innovation model 12

Focus and outcome o f innovation 12

Context o f innovation 14

Organisational capabilities fo r innovation 18

Process o f innovation 21

Summary 22

3 C ase study investigation 24

Introduction 24

Research aim 24

The case studies 24

Summary 27

4 Focus and outcom e o f innovation 28

Introduction 28

What generic strategic focus fo r innovation or definition o f

innovation does this motivation generate? 28

vi Contents

What is the genera! motivation fo r small construction firms

to innovate? 29

What are common innovation outcomes in small

construction firms? 34

Summary 34

5 O rganisational capabilities for innovation 35

Introduction 35

What are the key capabilities fo r innovation in small

construction firms? 35

How are these capabilities developed and used in innovation

activity? 38

Business strategy and market positioning 39

Technology 47

People 52

Organisation o f work 58

Summary 60

6 C ontext o f innovation 61

Introduction 61

What are the key events external and internal to small

construction firms which trigger innovation activity? 61

What is the appropriate emphasis between market-based

innovation and resource-based innovation in small construction

firms, and what conditions dictate this emphasis? 63

Summary 70

7 Process o f innovation 72

Introduction 72

Are the processes o f innovation in small construction firms

rational and/or behavioural in nature? 72

Summary 76

8 The role o f technology transfer in innovation within

sm all construction firms 77

Introduction 77

Key issues from the literature 78

Key project results 80

Summary 83

Contents vii

9 C onclusion 84

Introduction 84

Contribution to innovation theory 84

Organisational capabilities fo r innovation 87

Context o f innovation 90

Process o f innovation 93

Implications fo r policy makers 94

Envoi 98

References

Index

99

108

Illustrations

Figures

1.1 Number of UK construction organisations and employment

figures in 2001 and 2002 6

1.2 Number of UK enterprises and employment figures by

industrial sector in 2001 7

2.1 The generation and diffusion o f innovation 12

2.2 Generic innovation model 13

2.3 Synthesis of market-based and resource-based views of

innovation 17

2.4 Switching cognitive gears 19

2.5 Summary of key research questions 23

4.1 Hierarchy of motivational drivers for innovation 32

5.1 Organisational factors o f innovation model 36

6.1 Mode 1 and Mode 2 innovation 62

7.1 The process of innovation 73

7.2 Action and reaction interaction in innovation 74

7.3 The process of a H&S training innovation 75

8.1 The technology transfer system 79

9 .1 Hierarchy of motivational drivers for innovation 86

9.2 Organisational factors of innovation model 88

9.3 Mode 1 and Mode 2 innovation 92

9.4 The process o f innovation 94

9.5 The innovation process 95

Tables

1.1 Number of construction employees and production by country 3

1.2 Number of UK construction organisations by trade per year 4

3.1 Research questions 25

3.2 Key characteristics of participating small construction firms 26