Assessing the value of different business strategies to innovation by firms in the construction industry

Abstract

This original empirical research was conducted to explore the relationship between business strategies and innovation implementation by project-based firms. The relative importance of five types of business strategies was assessed, concerning: (1) employees, (2) marketing, (3) technology, (4) knowledge and (5) relationships. Analysis was based on a major survey of the Australian construction industry, as an example of a project-based industry. Marketing strategies were found to be least important to innovation outcomes, across the five strategy types. The individual business strategies having the greatest impact on innovation involved (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.