The relationship between construction firm strategies and innovation outcomes

Survey results provide a preliminary assessment of the relative contribution of a range of tactical business strategies to innovation performance by firms in the Australian construction industry. Over 1,300 firms were surveyed in 2004, resulting in a response rate of 29%. Respondents were classified as high, medium or low innovators according to an innovation index based on the novelty and impact of their innovations and their adoption of listed technological and organizational advances. The relative significance of 23 business strategies concerning (1) employees, (2) marketing, (3) technology, (4) knowledge and (5) relationships was examined by determining the extent to which they distinguished high innovators from low innovators. The individual business strategies that most strongly distinguished high innovators were (1) ‘investing in R&D’, (2) ‘participating in partnering and alliances on projects’, (3) ‘ensuring project learnings are transferred into continuous business processes’, (4) ‘monitoring international best practice’, and (5) ‘recruiting new graduates’. Of the five types of strategies assessed, marketing strategies were the least significant in supporting innovation. The results provide practical guidance to managers in project-based industries wishing to improve their innovation performance.

Domestic and international innovation partnerships : do they matter for innovation outcomes of South African firms?

This paper studies the impact of the diversity of domestic and international innovation partnerships on the innovation outcomes of South African firms. A number of competing hypotheses are formulated and tested empirically using a sample of South African firms in manufacturing and services by applying Ordinary Least Squares regression analyses. Results show that having an innovation partnership, particularly an international partnership, is beneficial to innovation outcomes. However, it also emerges that too diverse a set of international partnerships is detrimental to innovation outcomes. The paper concludes with a discussion and a number of proposals for future research.

Linking dynamic-capability portfolios and innovation outcomes

The objective of this paper is to explore the relationship between dynamic capabilities and different types of online innovations. Building on qualitative data from the publishing industry, our analysis revealed that companies that had relatively strong dynamic capabilities in all three areas (sensing, seizing and reconfiguration) seem to produce innovations that combine their existing capabilities on either the market or the technology dimension with new capabilities on the other dimension thus resulting in niche creation and revolutionary type innovations. Correspondingly, companies with a weaker or more one-sided set of dynamic capabilities seem to produce more radical innovations requiring both new market and technological capabilities. The study therefore provides an empirical contribution to the emerging work on dynamic capabilities through its in-depth investigation of the capabilities of the four case firms, and by mapping the patterns between the firm's portfolio of dynamic capabilities and innovation outcomes.

Standardization efforts: The relationship between knowledge dimensions, search processes and innovation outcomes

We explore how a standardization effort (i.e., when a firm pursues standards to further innovation) involves different search processes for knowledge and innovation outcomes. Using an inductive case study of Vanke, a leading Chinese property developer, we show how varying degrees of knowledge complexity and codification combine to produce a typology of four types of search process: active, integrative, decentralized and passive, resulting in four types of innovation outcome: modular, radical, incremental and architectural. We argue that when the standardization effort in a firm involves highly codified knowledge, incremental and architectural innovation outcomes are fostered, while modular and radical innovations are hindered. We discuss how standardization efforts can result in a second-order innovation capability, and conclude by calling for comparative research in other settings to understand how standardization efforts can be suited to different types of search process in different industry contexts.

Towards a theoretical framework for organizational innovation

Being able to innovate has become a critical capability for many contemporary organizations in an effort to sustain their operations in the long run. However, existing innovation models that attempt to guide organizations emphasize different aspects of innovation (e.g., products, services or business models), different stages of innovation (e.g., ideation, implementation or operation) or different skills (e.g., development or crowdsourcing) that are necessary to innovate, in turn creating isolated pockets of understanding about different aspects of innovation. In order to yield more predictable innovation outcomes organizations need to understand what exactly they need to focus on, what capabilities they need to have and what is necessary in order to take an idea to market. This paper aims at constructing a framework for innovation that contributes to this understanding. We will focus on a number of different stages in the innovation process and highlight different types and levels of organizational, technological, individual and process capabilities required to manage the organizational innovation process. Our work offers a comprehensive conceptualization of innovation as a multi-level process model, and provides a range of implications for further empirical and theoretical examination.

How European public sector agencies innovate: The use of bottom-up, policy-dependent and knowledge-scanning innovation methods

Factor and cluster analysis are used to identify different methods that public sector agencies in Europeuse to innovate, based on data from a 2010 survey of 3273 agencies. The analyses identify three types ofinnovative agencies: bottom-up, knowledge-scanning, and policy-dependent. The distribution of bottom-up agencies across European countries is positively correlated with average per capita incomes while thedistribution of knowledge-scanning agencies is negatively correlated with income. In contrast, there isno consistent pattern by country in the distribution of policy-dependent agencies. Regression resultsthat control for agency characteristics find that innovation methods are significantly correlated with thebeneficial outcomes of innovation, with bottom-up and knowledge-scanning agencies out-performingpolicy-dependent agencies.

Enabling innovation:knowledge control, sharing and coordination boundaries in UK and German manufacturing

We investigate how boundaries in knowledge control, sharing and co-ordination influence UK and German manufacturing firms’ innovation intensity (an indicator of the volume of product change) and product life (an indicator of the pace of generational change). In general UK plants more commonly face knowledge control boundaries related to plant ownership or control, while German plants more commonly face boundaries related to knowledge sharing and knowledge co-ordination between functional groups. Our empirical results emphasise the importance of the strategic management of innovation. Knowledge control boundaries – related to external ownership, group membership and decision making autonomy – have a weak negative influence on plants’ innovation outcomes. Strategic decisions relating to multifunctional working and networking are found to be more important in overcoming knowledge sharing and co-ordination boundaries. Knowledge sharing boundaries, related to plant or company boundaries, prove most important where a plant has no in-house R&D capability. Knowledge co-ordination boundaries related to functional or multi-functional working have strong but differential effects on different innovation output measures: functional boundaries increase product life in both countries, and in Germany maintaining functional boundaries is also associated with increased innovation intensity.

Innovation in teams : a qualitative and quantitative study of team behaviours

This thesis explores the processes of team innovation. It utilises two studies, an organisationally based pilot and an experimental study, to examine and identify aspects of teams' behaviours that are important for successful innovative outcome. The pilot study, based in two automotive manufacturers, involved the collection of team members' experiences through semi-structured interviews, and identified a number of factors that affected teams' innovative performance. These included: the application of ideative & dissemination processes; the importance of good team relationships, especially those of a more informal nature, in facilitating information and ideative processes; the role of external linkages in enhancing quality and radicality of innovations; and the potential attenuation of innovative ideas by time deadlines. This study revealed a number key team behaviours that may be important in successful innovation outcomes. These included; goal setting, idea generation and development, external contact, task and personal information exchange, leadership, positive feedback and resource deployment. These behaviours formed the basis of a coding system used in the second part of the research. Building on the results from the field based research, an experimental study was undertaken to examine the behavioural differences between three groups of sixteen teams undertaking innovative an task to produce an anti-drugs poster. They were randomly assigned to one of three innovation category conditions suggested by King and Anderson (1990), emergent, imported and imposed. These conditions determined the teams level of access to additional information on previously successful campaigns and the degree of freedom they had with regarding to the design of the poster. In addition, a further experimental condition was imposed on half of the teams per category which involved a formal time deadline for task completion. The teams were video taped for the duration of their innovation and their behaviours analysed and coded in five main aspects including; ideation, external focus, goal setting, interpersonal, directive and resource related activities. A panel of experts, utilising five scales developed from West and Anderson's (1996) innovation outcome measures, assessed the teams' outputs. ANOVAs and repeated measure ANOVAs were deployed to identify whether there were significant differences between the different conditions. The results indicated that there were some behavioural differences between the categories and that over the duration of the task behavioural changes were identified. The results, however, revealed a complex picture and suggested limited support for three distinctive innovation categories. There were many differences in behaviours, but rarely between more than two of the categories. A main finding was the impact that different levels of constraint had in changing teams' focus of attention. For example, emergent teams were found to use both their own team and external resources, whilst those who could import information about other successful campaigns were likely to concentrate outside the team and pay limited attention to the internal resources available within the team. In contrast, those operating under task constraints with aspects of the task imposed onto them were more likely to attend to internal team resources and pay limited attention to the external world. As indicated by the earlier field study, time deadlines did significantly change teams' behaviour, reducing ideative and information exchange behaviours. The model shows an important behavioural progression related to innovate teams. This progression involved the teams' openness initially to external sources, and then to the intra-team environment. Premature closure on the final idea before their mid-point was found to have a detrimental impact on team's innovation. Ideative behaviour per se was not significant for innovation outcome, instead the development of intra-team support and trust emerged as crucial. Analysis of variance revealed some limited differentiation between the behaviours of teams operating under the aforementioned three innovation categories. There were also distinct detrimental differences in the behaviour of those operating under a time deadline. Overall, the study identified the complex interrelationships of team behaviours and outcomes, and between teams and their context.

The role of stimulating employees creativity and idea generation in encouraging innovation behaviour in Irish firms

This paper analyses the impact of stimulating staff creativity and idea generation on the likelihood of innovation. Using data for over 3,000 firms, obtained from the Irish Community Innovation Survey 2008-10, we examine the impact of six creativity generating stimuli on product, process, organisational, and marketing innovation. Our results indicate that the stimuli impact the four forms of innovation in different ways. For instance brainstorming and multidisciplinary teams are found to stimulate all forms of innovation, rotation of employees is found to stimulate organisational innovation, while financial and non-financial incentives are found to have no effect on any form of innovation. We also find that the co-introduction of two or more stimuli increases the likelihood of innovation more than implementing stimuli in isolation. These results have important implications for management decisions in that they suggest that firms should target their creative efforts towards specific innovation outcomes.

Being the best

Being the Best investigates the ways in which highly innovative contractors sustain their market leadership. The businesses consulted are quoted extensively, as a means of sharing their insights. This report is intended as a resource for contractors that want to improve their innovation outcomes and business performance.

Innovative Practices in the Australian Built Environment Sector : An Information Resource for Industry

PROJECT BRIEF Information provided by the Built Environment Industry Innovation Council as background to this project includes the following information on construction and innovation within the industry. • The construction industry contributes around $67 billion to GDP and employs around 970,000 and generates exports of nearly $150 million. • The industry has one of the lowest innovation rates of any industry in Australia, ranking third last across all Australian industries in terms of its proportion of business expenditure on innovation, and second last in terms of the proportion of income generated from innovation (ABS, 2006). • Key innovation challenges include addressing energy and water use efficiency, and housing costs in preparing for the implementation of the Carbon Pollution Reduction Scheme. The sector will need to build its capability and capacity to deliver the technical and operational expertise required.The broader Built Environment Innovation Project aims to address the following two objectives: 1. Identify current innovative practice across the Built Environment industry. 2. Develop a knowledge exchange strategy for this information to be disseminated to all industry stakeholders. Industry practice issues are critical to the built environment industry’s ability to innovate, and the BRITE project from the CRC for Construction Innovation has previously undertaken work to identify the key factors that drive innovation. Part 1 of the current project aims to extend this work by conducting a stocktake of current and emerging innovative practices within the built environment industry. Part 2 of the project addresses the second of these objectives, that is, to recommend a knowledge exchange strategy for promoting the wider uptake of innovative practices that makes the information identified in Part 1 of the study (on emerging innovative practices) accessible to Australian built environment industry stakeholders. The project brief was for the strategy to include a mechanism to enable this information resource to be updated as new initiatives/practices are developed. A better understanding of the built environment industry’s own knowledge infrastructure also has the potential to enhance innovation outcomes for the industry. This project will develop a coordinated knowledge exchange strategy, informed by the best available information on current innovation practices within the industry and suggest directions for gaining a better understanding of: the industry contexts that lead to innovative practices; the industry (including enterprise and individual) drivers for innovation; and appropriate knowledge exchange pathways for delivering future industry innovation. A deliverable of Part 2 will be a recommendation for a knowledge exchange strategy to accelerate adoption of innovative practices in the built environment industry, including resource implications and how such a recommendation could be taken forward as an ongoing resource.

Argentina: recent dynamics in the software and IT services industry

Includes bibliography.

Diseño metodológico para la creación y desarrollo de organizaciones innovadoras, basadas en un modelo de liderazgo que genere entornos facilitadores de la creatividad, implantación de procesos de innovación y creación de productos y servicios innovadores

La presente investigación tiene como objetivo el desarrollo de una metodología que favorezca la innovación en las empresas a través de la actividad directiva, analizando a su vez, su influencia a nivel macro, en los sistemas de innovación, en las políticas de innovación y en el capital intelectual y a nivel micro, en la innovación, en el desempeño y en el clima organizacional. Se estima importante realizar un estudio sobre este tema debido a que la innovación se considera un pilar crítico para el desarrollo social a través de la competitividad de las empresas, así como, una fuente importante de ventaja competitiva. Existe abundante literatura sobre la influencia de la innovación en la gestión empresarial y el papel que el liderazgo desempeña en términos generales. Sin embargo, la literatura presenta diversos estilos de liderazgo sin mostrar una línea consistente de interrelación entre ellos, por lo que finalmente no existe una relación sólida entre el liderazgo, la gestión empresarial y la innovación. Este hecho se debe, como se muestra en la tesis, a que la literatura analiza las organizaciones y el liderazgo desde una perspectiva sociológica u organizacional, y otra desde la perspectiva psicológica sin aportar una línea de articulación entre ambas. Es decir, la literatura analiza el comportamiento organizacional pero no su causa. A lo largo de la tesis se van desarrollando diferentes líneas de trabajo que se convierten en aportaciones empíricas y académicas. Así, una de las aportaciones de la tesis es la sustitución de la figura del líder como persona, por la de un directivo con una doble función; por un lado, la función de liderazgo cuyo objetivo es generar cambio y por el otro, la función de gestionar el día a día o desempeño. Sustituir la figura del líder por una doble funcionalidad directiva facilita la comprensión del concepto liderazgo, lo que permite a su vez, establecer estrategias para su desarrollo, haciendo una realidad el que el liderazgo puede ser aprendido. Este resultado constituye la primera aportación de la tesis. Así mismo, a través de un exhaustivo análisis de la literatura, se desarrolla una propuesta de liderazgo integrado de acuerdo con el modelo Stuart-Kotze, el cual se describe también ampliamente. Encontrar un modelo único de liderazgo supone la piedra angular para el desarrollo de la metodología. Esta propuesta de liderazgo integrado da lugar a la segunda aportación de la tesis. Del mismo modo, se realiza un estudio en profundidad de la perspectiva psicológica de las organizaciones desarrollando el constructo Miedo al Error (ME) que resulta ser un rasgo de la personalidad existente en todos los seres humanos y que presenta una influencia negativa tanto en el desempeño, como en la innovación empresarial. Este resultado permite identificar cuales son las verdaderas barreras para el ejercicio del liderazgo, señalando que la disminución del ME debe ser considerada como una competencia de la Inteligencia Emocional a ser desarrollada por los directivos. Este resultado constituye la tercera aportación de la tesis. Una vez desarrollado el modelo de gestión empresarial expuesto, se procede a su validación, analizando la relación entre los constructos que definen el modelo de gestión: el desempeño, la innovación y el ME. Para identificar las influencias o relaciones de causalidad que subyacen entre los constructos, se utilizó la técnica del modelo de ecuaciones estructurales (SEM). La población objeto de estudio estuvo constituida por 350 profesionales con responsabilidad directiva, procedentes de empresas del sector servicios repartidas por toda la geografía española. Como fuente primaria de recolección de información se utilizó el cuestionario desarrollado por Stuart-Kotze M-CPI (Momentum Continuous Performance Improvement). En primer lugar se procedió a evaluar las propiedades psicométricas del modelo de medida, llevándose a cabo un análisis factorial exploratorio (AFE) y un análisis factorial confirmatorio (AFC) de segundo orden. Los resultados obtenidos ponen de manifiesto que el constructo desempeño (D) viene determinado por dos dimensiones, (DOP), desempeño orientado hacia la planificación y (DORT), desempeño orientado hacia la realización de la tarea. Es decir, la muestra de directivos no percibe que la planificación en el día a día y la realización de la tarea estén articuladas. Posteriormente se procede a realizar el contraste del modelo a través del método de ecuaciones estructurales. Los resultados muestran que la relación de influencia de la dimensión DOP no es significativa, por lo que el constructo D queda representado únicamente por la dimensión DORT. Los resultados de la investigación proporcionan conclusiones e hipótesis para futuras investigaciones. Si bien la muestra de directivos realiza un plan estratégico, éste no se tiene en cuenta en el día a día. Este hecho podría explicar el alto grado de administración por crisis tan frecuente en la empresa española. A su vez, el ME presenta una influencia negativa en la innovación, lo que concuerda con la literatura. Al respecto, considerar el ME como un rasgo de la personalidad, presente tanto en directivos como en colaboradores, facilita la comprensión de las barreras de la organización hacia la comunicación abierta a la vez, que una dirección de trabajo para la mejora de la capacidad innovadora de la organización. Por último, los resultados establecen la existencia de una relación causal entre el desempeño diario y la innovación. Con respecto a este segundo resultado y analizando los comportamientos que identifican el constructo D surgen también varias conclusiones e hipótesis para futuras investigaciones. Los resultados ponen de manifiesto que la muestra de directivos genera iniciativas de cambio con la finalidad de que el trabajo diario salga adelante según los estándares de calidad definidos. Sin embargo, estas iniciativas sólo proceden de los directivos, sin participación alguna de los colaboradores, los cuales son sólo responsables de la implementación produciéndose la consiguiente desmotivación y pérdida de oportunidades. Esta conclusión pone de manifiesto que la innovación de las empresas de la muestra sucede para garantizar la eficiencia de los procesos existentes, pero en ningún caso surge de la iniciativa de buscar una mejor eficacia empresarial. Este hecho plantea un origen doble de la innovación en los procesos. La innovación proactiva que buscaría la mejora de la eficacia de la organización y una innovación de carácter reactiva que buscaría la salvaguarda de la eficiencia. Quizás sea esta la causa del gap existente entre la innovación en España y la innovación de los países que ocupan los primeros puestos en el ranking de producción de innovación lo que constituye un importante punto de partida para una investigación futura. ABSTRACT This research aims to develop a methodology that supports innovation in companies through the managers’ activity, analysing in turn its influence at the macro level: innovation systems, innovation policies and Intellectual capital and at the micro level: innovation itself, performance and organizational climate. It is considered important to conduct a study on this subject due to the fact that innovation is considered a critical pillar for the development and future of the enterprise and an important source of competitive advantage. There is abundant literature about the influence of innovation in business management and the role that leadership plays in general terms. However, the literature presents various styles of leadership without showing a consistent relationship among them, so finally there is not a strong relationship among leadership, business management and innovation. As shown in the thesis, this is due to the fact that the literature analyses organizations and leadership from a sociological or organizational perspective and from a psychological perspective, without providing a hinge line between the two. That is, the existing literature discusses organizational behaviour but not its cause. Throughout the thesis, different lines of work that become empirical and academic contributions have been developed. Thus, one of the contributions of the thesis is replacing the figure of the leader as a person, by a manager with a dual function. Firstly, we have the leadership role which aims to generate change and, on the other hand, the function to manage the day-to-day task or performance. Replacing the figure of the leader by a dual managerial functionality facilitates the understanding of the leadership concept, allowing in turn, to establish development strategies and making true that leadership can be learned. This outcome is the first contribution of the thesis. Likewise, through a comprehensive literature review, an integrated leadership proposal is developed, according to the Kotze model, which is also described widely. Finding a specific leadership model represents the cornerstone for the development of the methodology. This integrated leadership proposal leads to the second contribution of the thesis. Similarly, an in-depth study was conducted about the psychological perspective of the organizations disclosing the construct Fear of Failure. This construct is a personality trait that exists in all human beings and has a negative influence on both performance and business innovation. This outcome allows identifying which are the real barriers to the exercise of leadership, noting that the decrease in fear of failure must be considered as an Emotional Intelligence competence to be developed by managers. This outcome represents the third contribution of the thesis. Once a business management model has been developed, we proceed to its validation by analysing the relationship among the model constructs: management, innovation and fear of failure. To identify the influence or causal relationships underlying the constructs, a structural equation model (SEM) technique was used. The study population consisted of 350 professionals with managerial responsibility, from companies in the services sector scattered throughout the Spanish geography. As a primary source for gathering information a questionnaire developed by Kotze M-CPI (Continuous Performance Improvement Momentum) was used. First we proceeded to evaluate the psychometric properties of the measurement model, carrying out an exploratory factorial analysis (EFA) and a confirmatory factorial analysis (CFA) of second order. The results show that the performance construct D is determined by two-dimensions (DOP: performance oriented to planning) and (DORT: aiming at the realization of the task). That is, the sample of managers does not perceive that planning and the daily task are articulated. Then, we proceeded to make the contrast of the model through a structural equation model SEM. The results show that the influence of the DOP dimension is not significant, so that only the DORT dimension finally represents the construct D. The research outcomes provide conclusions and hypotheses for future research. Although the managers in the sample develop a strategic plan, it seems that managers do not take it into account in their daily tasks. This could explain the high degree of crisis management so prevalent in the Spanish companies. In turn, the fear of failure has a negative influence on innovation, consistent with the literature. In this regard, the fear of failure is considered as a personality trait, present in both managers and employees, which enables the understanding of organizational barriers to open communication and provides a direction to improve the organization’s innovative capacity as well. Finally, the results establish a causal relationship between daily performance and innovation. Regarding this second outcome and analysing the behaviours that identify the construct D, several conclusions and hypotheses for future research arise as well. The results show that the managers in the sample show initiatives of change in order to make everyday work go ahead, according to defined quality standards. However, these initiatives only come from managers without any participation of coworkers, which are only responsible for the implementation, and this produces discouragement and loss of opportunities. This finding shows that the innovation by the companies in the sample happens to guarantee the efficiency of existing processes, but do not arise from an initiative that seeks better business efficacy. This raises two sources of innovation in processes. The first source would be a proactive innovation that would seek improved organizational efficacy. The second one is a reactive innovation that would seek to safeguard efficiency. Perhaps this is the cause of the existing gap between the innovation activity in Spain and the innovation activity in those countries that occupy the top positions in the ranking of innovation outcomes. The Spanish companies seek process efficiency and the top innovators business efficacy. This is an important starting point for future research.

The graying of R&D workgroups: The effects of age diversity on developing publicly usable knowledge

Does the graying of scientific research teams matter? This study addresses how workgroup processes and external environmental factors contribute and inhibit the effect of age diversity in R&D project groups on the production of innovative publicly usable knowledge outcomes in the form of publication outputs. We examined the relationships between group age diversity (age cohort diversity, mean age, age dispersion), R&D workgroup member self-ratings of workgroup processes, their supervisor�s assessment of the external environmental factors the project groups faced, and their supervisor�s ratings of group performance, the number of scientific publicly available publications produced by the group and the use of multiple authorships on publications. Usable data was obtained from 32 R&D workgroups of a large Government Agricultural Research and Development Agency. Consistent with the literature, workgroup processes and external environmental factors were found to directly effect innovation outcomes. Contrary to expectation, but consistent with Social Identity theory, workgroup age diversity generally negatively impacted upon innovation outcomes. An exception was where multiple authorship on publications for project groups increased as the dispersion of age within groups increased. Importantly, workgroups that were both more age homogeneous and perceived to have optimally functioning work processes produced more R&D innovation outcomes than other groups. Generally, these differences appear to be related to the greater division of labor practices (and less multi-tasking) employed by the older and more homogeneous workgroups. Implications for R&D workgroup resource theory and practices are discussed.

Achieving superior innovation-based performance outcomes in SMEs through innovation resource–capability complementarity

Firms are increasingly identifying new avenues to enhance their market position. One such effort involves the firms' ability to continuously learn. Learning has the capacity to enable firms to develop and implement more efficient and effective innovation-focused strategies, resulting in the ability to develop and deliver more products in a timelier manner. This study tests the relationship between innovation resource–capability complementarity and innovation-based performance. This study further elaborates that while innovation resource–capability complementarity drives innovation-based performance; their relationship will be enhanced via the firms' possession of superior learning capability. The findings show a significant effect of innovation resource–capability complementarity on innovation-based performance. The results also show that firms that possess superior learning capability are willing to question their operational processes and routines and make adjustments following the feedback obtained from customers and channels; thereby enhancing their abilities to develop more new products and increase their speed in delivering products to the customers.