Innovation Ecosystems in the Construction Industry
Authors: Cansu Gülser, Tuğce Ercan
Abstract:
The construction sector is a key driver of the global economy, contributing significantly to growth and employment through a diverse array of sub-sectors. However, it faces challenges due to its project-based nature, which often hampers long-term collaboration and broader incentives beyond individual projects. These limitations are frequently discussed in scientific literature as obstacles to innovation and industry-wide change. Traditional practices and unwritten rules further hinder the adoption of new processes within the construction industry. The disadvantages of the construction industry’s project-based structure in fostering innovation and long-term relationships include limited continuity, fragmented collaborations, and a focus on short-term goals, which collectively hinder the development of sustained partnerships, inhibit the sharing of knowledge and best practices, and reduce incentives for investing in innovative processes and technologies. This structure typically emphasizes specific projects, which restricts broader collaborations and incentives that extend beyond individual projects, thus impeding innovation and change. The temporal complexities inherent in project-based sectors like construction make it difficult to address societal challenges through collaborative efforts. Traditional management approaches are inadequate for scaling up innovations and adapting to significant changes. For systemic transformation in the construction sector, there is a need for more collaborative relationships and activities beyond traditional supply chains. This study delves into the concept of an innovation ecosystem within the construction sector, highlighting various research findings. It aims to explore key questions about the components that enhance innovation capacity, the relationship between a robust innovation ecosystem and this capacity, and the reasons why innovation is less prevalent and implemented in this sector compared to others. Additionally, it examines the main factors hindering innovation within companies and identifies strategies to improve these efforts, particularly in developing countries. The innovation ecosystem in the construction sector generates various outputs through interactions between business resources and external components. These outputs include innovative value creation, sustainable practices, robust collaborations, knowledge sharing, competitiveness, and advanced project management, all of which contribute significantly to company market performance and competitive advantage. This article offers insights and strategic recommendations for industry professionals, policymakers, and researchers interested in developing and sustaining innovation ecosystems in the construction sector. Future research should focus on broader samples for generalization, comparative sector analysis, and application-focused studies addressing real industry challenges. Additionally, studying the long-term impacts of innovation ecosystems, integrating advanced technologies like AI and machine learning into project management, and developing future application strategies and policies are also important.
Keywords: Construction industry, innovation ecosystem, innovation ecosystem components, project management.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 10References:
[1] Melander, L., and Pazirandeh, A., 2019. Collaboration beyond the supply network for green innovation: insight from 11 cases. Supply chain management, 24 (4), 509–523.
[2] Rashidian, A., Ghadami, M. R., & Zohrevand, S. (2024). Developing maturity models for assessing construction innovation capabilities: a systematic review. Journal of Construction Engineering and Management, 150(1), 04023002. https://doi.org/10.1061/(ASCE)CO.1943-7862.0002356
[3] Thomas, L.D.W. and Autio, E. (2014) The fifth facet: the ecosystem as an organizational field, DRUID Society Conference, Copenhagen, Denmark, 16–18 June 2014.M. Young, The Techincal Writers Handbook. Mill Valley, CA: University Science, 1989.
[4] Iansiti M, Levien R. 2004. The Keystone Advantage: What the New Dynamics of Business Ecosystems Mean for Strategy, Innovation, and Sustainability. Harvard Business School Press: Boston, MA.
[5] Heikkilä 2012, Ecosystem Under Construction: An Action Research Study on Entrepreneurship in a Business Ecosystem, Article in Technology Innovation Management Review · June 2012
[6] Moore 1993, Predators and Prey: A New Ecology of Competition Article in Harvard Business Review · May 1999
[7] Blayse, Aletha M. and Manley, Karen (2004) Key influences on construction innovation. Construction Innovation, 4(3). pp. 143-154.H. Poor, An Introduction to Signal Detection and Estimation. New York: Springer-Verlag, 1985, ch. 4.
[8] Lynn Vosman, Tom B. J. Coenen, Leentje Volker & Klaasjan Visscher (2023) Collaboration and innovation beyond project boundaries: exploring the potential of an ecosystem perspective in the infrastructure sector, Construction Management and Economics, 41:6, 457-474, DOI: 10.1080/01446193.2023.2165695
[9] Lauri Pulkka, Miro Ristima¨ Ki, Karoliina Rajakallio and Seppo Junnila, (13 April 2016) Applicability and benefits of the ecosystem concept in the construction industry. Department of Built Environment, Aalto University, Espoo, Finland. Construction Management and Economics, 2016 vol. 34, No. 2, 129–144 http://dx.doi.org/10.1080/01446193.2016.1179773
[10] Jacqueline T. Y. Lo and Calvin Kam, 2022, Innovation of Organizations in the Construction Industry: Progress and Performance Attributes. DOI: 10.1061/(ASCE)ME.1943-5479.0001093. © 2022 American Society of Civil Engineers.
[11] Vosman, L, Coenen, T B J, Volker, L and Visscher, K (2021) Exploring the Innovation Ecosystem Concept for a Construction Industry in Transition In: Scott, L and Neilson, C J(Eds) Proceedings of the 37th Annual ARCOM Conference, 6-7 September 2021, UK,Association of Researchers in Construction Management, 449-458C. J. Kaufman, Rocky Mountain Research Lab., Boulder, CO, private communication, May 1995.