How do servant leaders ignite absorptive capacity?: the role of epistemic motivation and organizational support

This study examines the role of servant leadership in absorptive capacity. Data from manufacturing and service sector organizations found that: a) there was moderation of servant leadership influence on knowledge identification through POS by high need for cognition, b) there was moderation of servant leadership influence on knowledge application through POS by low time pressure, and c) POS mediated relationship between servant leadership and knowledge dissemination. The findings illustrate and support the importance of a comprehensive model integrating servant leadership, POS, and epistemic motivation in determining absorptive capacity.

Exploration and exploitation : the interplay between knowledge and continuous innovation

In rapidly changing environments, organisations require dynamic capabilities to integrate, build and reconfigure resources and competencies to achieve continuous innovation. Although tangible resources are important to promoting the firm’s ability to act, capabilities fundamentally rest in the knowledge created and accumulated by the firm through human capital, organisational routines, processes, practices and norms. The exploration for new ideas, technologies and knowledge – to one side – and – on the other one – the exploitation of existing and new knowledge is essential for continuous innovation. Firms need to decide how best to allocate their scarce resources for both activities and at the same time build dynamic capabilities to keep up with changing market conditions. This in turn, is influenced by the absorptive capacity of the firm to assimilate knowledge. This paper presents a case study that investigates the sources of knowledge in an engineering firm in Australia, and how it is organised and processed. As information pervades the firm from both internal and external sources, individuals integrate knowledge using both exploration and exploitation approaches. The findings illustrate that absorptive capacity can encourage greater leverage for exploration potential leading to radical innovation; and reconfiguring exploitable knowledge for incremental improvements. This study provides an insight for managers in quest of improving knowledge strategies and continuous innovation. It also makes significant theoretical contributions to the literature through extending the concepts of

Managing knowledge transfer as a strategic approach to competitive advantage

Knowledge has been recognised as a source of competitive advantage. Knowledge-based resources allow organisations to adapt products and services to the marketplace and deal with competitive challenges that enable them to compete more effectively. One factor critical to using knowledge-based resources is the ability to transfer knowledge as a dimension of the learning organisation. There are many elements that may influence whether knowledge transfer can be effectively achieved in an organisation such as leadership, problem-solving behaviours, support structures, change management capabilities, absorptive capacity and the nature of the knowledge. An existing framework was applied in a case study to explain how knowledge transfer can be managed effectively and to identify emerging issues or additional factors involved in the process. As a result, a refined framework is proposed that provides a better understanding for the effective management of knowledge transfer processes that can provide a competitive advantage.

Applying the open innovation system concept to infrastructure projects

Purpose: The goal of this conceptual paper is to provide tools to help maximise the value delivered by infrastructure projects, by developing methods to increase adoption of innovative products during construction. Methods: The role of knowledge flows in determining innovation adoption rates is conceptually examined. A promising new approach is developed. Open innovation system theory is extended, by reviewing the role of three frameworks: (1) knowledge intermediaries, (2) absorptive capacity and (3) governance arrangements. Originality: We develop a novel open innovation system model to guide further research in the area of adoption of innovation on infrastructure projects. The open innovation system model currently lacks definition of core concepts, especially with regard to the impact of different degrees and types of openness. The three frameworks address this issue and add substance to the open innovation system model, addressing widespread criticism that it is underdeveloped. The novelty of our model is in the combination of the three frameworks to explore the system. These frameworks promise new insights into system dynamics and facilitate the development of new methods to optimise the diffusion of innovation. Practical Implications: The framework will help to reveal gaps in knowledge flows that impede the uptake of innovations. In the past, identifying these gaps has been difficult given the lack of nuance in existing theory. The knowledge maps proposed will enable informed policy advice to effectively harness the power of knowledge networks, increase innovation diffusion and improve the performance of infrastructure projects. The models developed in this paper will be used in planned empirical research into innovation on large scale infrastructure projects in the Australian built environment.

Managing the project learning paradox : a set-theoretic approach toward project knowledge transfer

Managing project-based learning is becoming an increasingly important part of project management. This article presents a comparative case study of 12 cases of knowledge transfer between temporary inter-organizational projects and permanent parent organizations. Our set-theoretic analysis of these data yields two major findings. First, a high level of absorptive capacity of the project owner is a necessary condition for successful project knowledge transfer, which implies that the responsibility for knowledge transfer seems to in the first place lie with the project parent organization, not with the project manager. Second, none of the factors are sufficient by themselves. This implies that successful project knowledge transfer is a complex process always involving configurations of multiple factors. We link these implications with the view of projects as complex temporary organizational forms in which successful project managers need to cope with complexity by simultaneously paying attention to both relational and organizational processes.

Communications and learning structures that facilitate transfer of knowledge at innovation transition points

Innovation processes are rarely smooth and disruptions often occur at transition points were one knowledge domain passes the technology on to another domain. At these transition points communication is a key component in assisting the smooth hand over of technologies. However for smooth transitions to occur we argue that appropriate structures have to be in place and boundary spanning activities need to be facilitated. This paper presents three case studies of innovation processes and the findings support the view that structures and boundary spanning are essential for smooth transitions. We have explained the need to pass primary responsibility between agents to successfully bring an innovation to market. We have also shown the need to combine knowledge through effective communication so that absorptive capacity is built in process throughout the organisation rather than in one or two key individuals.

Adoption of innovative products on Australian road infrastructure projects

Product innovation is an important contributor to the performance of infrastructure projects in the construction industry. Maximizing the potential for innovative product adoption is a challenging task due to the complexities of the construction innovation system. A qualitative methodology involving interviews with major construction project stakeholders is employed to address the research question: ‘What are the main obstacles to the adoption of innovative products in the road industry?’ The characteristics of six key product innovation obstacles in Australian road projects are described. The six key obstacles are: project goal misalignment, client pressures, weak contractual relations, lack of product trialling, inflexible product specifications and product liability concerns. A snapshot of the dynamics underlying these obstacles is provided. There are few such assessments in the literature, despite the imperative to improve construction innovation rates globally in order to deliver road infrastructure projects of increasing size and complexity. Key obstacles are interpreted through an open innovation construct, providing direction for policy to enhance the uptake of innovation across the construction product supply network. Early evidence suggests the usefulness of an open innovation construct that integrates three conceptual lenses: network governance, absorptive capacity and knowledge intermediation, in order to interpret product adoption obstacles in the context of Australian road infrastructure projects. The paper also provides practical advice and direction for government and industry organizations that wish to promote the flow of innovative product knowledge across the construction supply network.

R&D investment in green building initiatives in Western Australia

This paper reports on a current case study of green building initiatives implemented by the Western Australian government in the past decade. The intent is to provide a qualitative understanding of past R&D investments in the Australian built environment. The case method was selected to illustrate three sector-based investments, one of which is reported on here. The conceptual framework underpinning interview design and data analysis uses dynamic capability, absorptive capacity and open innovation theories to better understand the organisational environment in which these initiatives were implemented. Data has been thematically coded to criteria identified from the literature to illustrate organisational characteristics which may have contributed to dissemination and impact. The results will be combined with two further case studies (construction safety and digital modelling), to inform this research. This industry supported project will conclude by developing policy guidelines for future R&D investment in the built environment.

Innovative Products Project: Background Study

The Australian Research Council (ARC) Innovative Products Project aims to facilitate project innovation by exploring means to improve the diffusion of innovative products to road and bridge projects. It adopts a highly novel approach to achieve this end, developing three different ways of viewing the problem: (1) as a relational governance issue, (2) as an absorptive capacity issue and (3) as a knowlege intermediation issue. This report presents teh results of teh first phase of a three phase fieldwork program.

Brokering innovation to better leverage R&D investment

What is the contribution of innovation brokers in leveraging research and development (R&D) investment to enhance industry-wide capabilities? The case of the Australian Cooperative Research Centre for Construction Innovation (CRC CI) is considered in the context of motivating supply chain firms to improve their organizational capabilities in order to acquire, assimilate, transfer and exploit R&D outcomes to their advantage, and to create broader industry and national benefits. A previous audit and analysis has shown an increase in business R&D investment since 2001. The role of the CRC CI in contributing to growth in the absorptive capacity of the Australian construction industry as a whole is illustrated through two programmes: digital modelling building information modelling (BIM) and construction site safety. Numerous positive outcomes in productivity, quality, improved safety and competitiveness were achieved between 2001 and 2009.

Leveraging R&D Investment for the Australian Built Environment : Industry Report

The overarching goal of this project is to better match funding strategies to industry needs to maximise the benefits of R&D to Australia’s infrastructure and building industry. Project partners are: Queensland Department of Public Works; Queensland Transport and Main Roads; Western Australian Department of Treasury and Finance; John Holland; Queensland University of Technology; Swinburne University of Technology; and VTT Technical Research Centre of Finland (Prof Göran Roos). This project has been endorsed by the Australian Built Environment Industry Innovation Council (BEIIC) with Council member Prof Catherin Bull serving on this project’s Steering Committee. This project seeks to: (i) maximise the value of R&D investment in this sector through improved understanding of future industry research needs; and (ii) address the perceived problem of a disproportionately low R&D investment in this sector, relative to the size and national importance of the sector. This research will develop new theory built on open innovation, dynamic capabilities and absorptive capacity theories in the context of strategic foresighting and roadmapping activities. Four project phases have been designed to address this research: 1: Audit and analysis of R&D investment in the Australian built environment since 1990 - access publically available data relating to R&D investments across Australia from public and private organisations to understand past trends. 2: Examine diffusion mechanisms of research and innovation and its impact on public and private organisations – investigate specific R&D investments to determine the process of realising research support, direction-setting, project engagement, impacts and pathways to adoption. 3: Develop a strategic roadmap for the future of this critical Australian industry - assess the likely future landscapes that R&D investment will both respond to and anticipate. 4: Develop policy to maximise the value of R&D investments to public and private organisations – through translating project learnings into policy guidelines.

The impact of construction organisations’ learning capabilities on collaborative projects

Dynamic capability theory asserts that the learning capabilities of construction organisations influence the degree to which value-for-money (VfM) is achieved on collaborative projects. However, there has been little study conducted to verify this relationship. The evidence is particularly limited within the empirical context of infrastructure delivery in Australia. Primarily drawing on the theoretical perspectives of the resource-based view of the firm (e.g. Barney 1991), dynamic capabilities (e.g. Helfat et al. 2007), absorptive capacity (e.g. Lane et al. 2006) and knowledge management (e.g. Nonaka 1994), this paper conceptualises learning capability as a knowledge-based dynamic capability. Learning capability builds on the micro-foundations of high-order learning routines, which are deliberately developed by construction organisations for managing collaborative projects. Based on this conceptualisation of learning capability, an exploratory case study was conducted. The study investigated the operational and higher-order learning routines adopted by a project alliance team to successfully achieve VfM. The case study demonstrated that the learning routines of the alliance project were developed and modified by the continual joint learning activities of participant organisations. Project-level learning routines were found to significantly influence the development of organisational-level learning routines. In turn, the learning outcomes generated from the alliance project appeared to significantly influence the development of project management routines and contractual arrangements applied by the participant organisations in subsequent collaborative projects. The case study findings imply that the higher-order learning routines that underpin the learning capability of construction organisations have the potential to influence the VfM achieved on both current and future collaborative projects.

Innovation in the road and bridge industry

This paper reviews innovation activity in a key service industry – road and bridge construction. Based on a large-scale Australian survey and descriptive statistics, the paper finds that there is little difference in innovation levels between different types of industry participants and that innovation is difficult to implement. The survey gathered responses from suppliers, consultants, contracts and clients and compared results across these four industry sectors. The absorptive capacity and relationship capacities of respondents were also investigated. One in five respondents had poor absorptive capacity. Suppliers were found to the most effective learners and were the best adopters of ideas from outside their organisations and consultants were the least effective. Australian construction organisations have relatively good relationship skills because relationship-based contracts are common compared to other countries. Indeed, the survey found that nearly 60% of respondents had experience with such contracts, with clients having more experience than the other three sectors. The results have implications for the measurement of innovation in project-based industries, and the relative roles of clients and suppliers in driving innovation in the construction industry. Further research will examine the extent to which particular governance mechanisms within relationship contracts lead to improved innovation and project performance.

Learning routines used by firms during construction of infrastructure projects using the alliance procurement method

Collaborative contracting has emerged over the past 15 years as an innovative project delivery framework that is particularly suited to infrastructure projects. Australia leads the world in the development of project and program alliance approaches to collaborative delivery. These approaches are considered to promise superior project results. However, very little is known about the learning routines that are most widely used in support of collaborative projects in general and alliance projects in particular. The literature on absorptive capacity and dynamic capabilities indicates that such learning enhances project performance. The learning routines employed at corporate level during the operation of collaborative infrastructure projects in Australia were examined through a large survey conducted in 2013. This paper presents a descriptive summary of the preliminary findings. The survey captured the experiences of 320 practitioners of collaborative construction projects, including public and private sector clients, contractors, consultants and suppliers (three per cent of projects were located in New Zealand, but for brevity’s sake the sample is referred to as Australian). The majority of projects identified used alliances (78.6%); whilst 9% used Early Contractor Involvement (ECI) contracts and 2.7% used Early Tender Involvement contracts, which are ‘slimmer’ types of collaborative contract. The remaining 9.7% of respondents used traditional contracts that employed some collaborative elements. The majority of projects were delivered for public sector clients (86.3%), and/or clients experienced with asset procurement (89.6%). All of the projects delivered infrastructure assets; one third in the road sector, one third in the water sector, one fifth in the rail sector, and the rest spread across energy, building and mining. Learning routines were explored within three interconnected phases: knowledge exploration, transformation and exploitation. The results show that explorative and exploitative learning routines were applied to a similar extent. Transformative routines were applied to a relatively low extent. It was also found that the most highly applied routine is ‘regularly applying new knowledge to collaborative projects’; and the least popular routine was ‘staff incentives to encourage information sharing about collaborative projects’. Future research planned by the authors will examine the impact of these routines on project performance.

Externally oriented capabilities and corporate entrepreneurship : institutional and managerial contingencies

This research adopts three different theoretical lenses- the attention-based view, institutional perspective and network theory- to investigate the effect of externally oriented capabilities (absorptive capacity and networking capabilities) on corporate entrepreneurship. Based on an Australian and Iranian sample of mining equipment, technology and service providers, this thesis provides new understanding of why some firms are able to generate higher levels of corporate entrepreneurship than others and opens new directions for more capabilities-oriented research in corporate entrepreneurship. In particular, this research provides new insight into how entrepreneurial management, institutional context and external knowledge search breadth shape the relationship between externally oriented capabilities and corporate entrepreneurship.