Characteristics of innovation orientations in construction companies

Abstract

Purpose An organisation’s performance tends to be associated with its innovativeness. However, innovation remains challenging in the construction industry, partially due to the complex nature of this industry. Nevertheless, innovation orientations (i.e. creation and adoption) shed new light on innovation in the construction industry. These orientations are similar but not entirely identical. Although most studies do not discuss these orientations in any detail, this study aims to classify the characteristics of the innovation orientations and determines the state of innovation among construction companies in Malaysia. Design/methodology/approach A survey questionnaire was mailed to 1,230 construction companies in Malaysia. Descriptive analysis was used to examine the respondents’ profiles, and factor analysis was used to classify the innovation orientation characteristics. A paired samples t-test was used to determine the state of innovation among the construction companies. Findings Innovation creation reflects a pioneer’s efforts and involves being a market explorer that tolerates risk and is research and development (R&D)-oriented, whereas innovation adoption involves being a creative imitator, a market follower and a safe player. Construction companies in Malaysia are innovation adoption–oriented. Research limitations/implications This study uses quantitative methods only; therefore, the findings are statistically oriented. The small sample size makes generalisation challenging, so this study reflects only the built environment of the developing country of Malaysia. Originality/value This study classifies the characteristics of innovation creation and innovation adoption with respect to the innovation orientation of construction companies in Malaysia.