energizing innovation in integrated project delivery final report - SPUR

the influence of several individual and situational factors that impact implementation of new
products and processes. Two main elements were found to impact the implementation
component of innovation: championing behavior of management, and motivation of team
members facilitated by a supportive organizational climate. The researchers found that project
complexity, size of project, size of project team, and resources are impacting situational factors.
The innovation champion’s behavior was another factor identified. Observable behavior that is
directed toward seeking, stimulating, supporting, carrying, and promoting innovation is
important to success. In addition, a supportive organizational climate, consisting of two
elements – resource supply and support for innovation – are crucial to enabling innovation.
Toole (2001) argues that the success of an innovation depends on the ability of the innovators to
show that the innovation will:
• Reduce Cost. Innovations that allow a contractor to lower the cost of performing a
portion of the project will allow the contractor to either maintain its price and increase
profit margins, or lower its price and increase market share.
• Decrease Schedule. An innovation that does not necessarily reduce the average cost
of a task but reduces its variability is desirable from a risk management perspective.
• Enhance Performance. Performance refers to all physical characteristics of a
building product and can be divided into three sets: construction performance,
installed performance, and design performance. Construction performance refers to
the characteristics of a product relevant to the construction process. For example,
products that can be constructed with less skilled labor and products that can be
stored on-site or left exposed without suffering weather damage are highly desirable.
It is clear from the research of Toole and others that just having a good idea is not enough in the
construction business to cause the innovative change. An understanding and demonstration of
the financial benefits resulting from the innovation are required to affect the innovation process.
Return on investment to stakeholders is a significant concern that drives the decision to make the
change happen. In the absence of external regulations or other controlling factors, the lack of a
positive return on investment will typically stall the implementation of a new idea.
The management of knowledge has been shown to be a key aspect of innovation as well. The
ability to develop new ideas and identify the risks and rewards commonly resides within the
experiential knowledge and expertise of a firm. Much of this knowledge is tacit, embedded in
the culture of a firm. Train and Egbu (2006) reveal that successfully accessing this often tacit
knowledge through effective knowledge management increases a firm’s ability to innovate. The
research indicates that as knowledge moves from the explicit through to the tacit, the innovative
capacity of an organization will increase.
It should be noted, however, that success in innovation is rarely associated with doing one or two
things outstandingly well (Jones and Saad 2003). Rather, it is dependent on performing all
functions competently and in a well-balanced integrated manner, taking into account the
specificities of internal and external environment.
17