The economic motivation for innovation in small construction companies

Abstract

There is an increasing emphasis on the importance of innovation for the longterm economic success of businesses. At the same time the construction industry is characterized as being a poor innovator in comparison to other industries. If the university sector is to play a role in increasing innovation within construction companies it is necessary to for it to understand what the benefits and risks of innovation might be and what the motivation is for a business to adopt innovation. This paper attempts to develop answers to these questions through the analysis of a case study involving a small heating and plumbing company that embarked upon a performance improvement initiative and as a result implemented a number of innovative practices in its operations. Building upon on the results of this case study, suggestions for more effective collaboration between the university sector and industry are made.