Industrialised, Integrated, Intelligent sustainable Construction - I3con

SUSTAINABLE CONSTRUCTION HANDBOOK 2
provides societies with facilities and infrastructure projects that meet their needs and fulfil their
requirements (Friends of the Earth, 1995; Roodman and Lenssen, 1995; Khan, 2008). On the other
hand, around 3 billion tonnes of raw materials and 40% of the total global economy are used in
manufacturing construction materials worldwide. Furthermore, the construction industry is
accountable for about 50% of the material resources taken from nature, 40% of energy consumption
and 50% of total waste generated. Large amounts of energy are consumed during the procurement of
materials, construction activities and operating artificial heating and cooling systems (Anink et al.,
1996; Othman, 2007). This called for the construction industry to be more sustainable. The rapid
political, economic, legal, technological and competitive changes in the business environment
necessitated that every industry has to innovate in order to remain in market and compete for the
future (Othman, 2008). Today's competitive environment entails that companies have to understand
the needs of current generations and offer them efficient and effective solutions that achieve their
objectives without compromising new generations from achieving their own needs. Innovation and
new technology are essential components of competitive advantage for many organizations. Different
organizations face imperative competitive challenges due to the quick speed and unpredictability of
technological change. Industries which depend on highly sophisticated technologies and firms that are
engaged in multinational competition are particularly vulnerable to the need for continuous and rapid
modification of their products’ features, and the ways in which they conduct business. Because of the
limited natural resources on the planet and due to the huge consumption of materials and energy,
construction professionals have to consider sustainability issues when performing their activities in
order to be competitive. Innovations and new technology provide a way of increasing the
competitiveness of the construction industry through developing smarter materials, equipment and
techniques that save the environment, enhance society and prosper the economy.
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Aim and Objectives
This chapter aims to investigate the integration of innovation and sustainability principles as an
approach for achieving competitive advantage in construction. In order to achieve this aim, three
objectives have to be accomplished:
• Building a thorough background of the study topic through reviewing the concepts of
innovation, sustainability and competitive advantage in the construction industry.
• Presenting case studies and examples of innovative ideas that increased competitive
advantages of companies operating in construction and other industries.
• Developing an innovative theoretical framework integrates innovation and sustainability
towards achieving competitive advantage in construction. The development of the framework
is based on the results of the literature review, cases studies and the practical solution that the
integration of both principles can do towards increasing competitive advantage in the
construction industry.
Overview and Definitions
Background
Innovation
The term “innovation” refers to a new idea, method or device (Oxford Dictionary, 2009). It is the
creation, development and implementation of a new product, process or service, with the aim of
improving efficiency, effectiveness or competitive advantage (Digital Strategy, 2009). Innovation is a
mindset, a pervasive attitude, or a way of thinking focused beyond the present into the future vision.
Innovation is not a modern concept. Joseph Schumpeter is believed to be the first economist who
recognised the importance of innovation in the 1930’s (Rogers, 1983). It is increasingly seen as a
result of an interactive process of knowledge generation and knowledge application (Toedtling and
Lehner, 2006). It is an important topic in the study of economics, business, design, technology,
sociology, and engineering. Innovation is often synonymous with the output of the process. However,
economists tend to focus on the process from the origination of an idea to its transformation into a
useful product, to its implementation; and on the system within which the process of innovation