Innovation Literature review Example | Topics and Well Written Essays - 4750 words

Innovation - Literature review Example This paper is a literature review of innovation as an important driver of firm profitability and performance, and as a vital source of competitive advantage in any industry. The ability of a business to arrive at creative and insightful designs and methods by which it may meet consumer demands and expectations has always been an attribute that culls consumer loyalty to its products and services. The same is true with the construction industry, where different construction firms are held to public scrutiny by such standards as cost, speed and quality of project execution, but also increasingly by its track record for safety and environment sustainability, its consistency with contemporary concepts of fair and ethical leadership, and the aesthetics and beauty of its design and craftsmanship. In comparative studies among various commercial undertakings, the construction industry noticeably lags behind in terms of innovation, research and development. Industry participants cite the overr iding emphasis on cost minimization in an era of constantly rising materials prices, skilled manpower costs, and administrative expenses. Recent institutional initiatives have been taken to promote innovation in construction, such as the formation of integrated teams and innovative leadership, the most efficient use of information transfer and knowledge management, radical breakthroughs in materials research and construction methods and techniques, and the education of the public to develop a culture more receptive to innovation. The enhancement of an innovative culture in construction requires a broad-based and concerted collaboration among industry firms, associations, regulatory agencies, and other entities in the value chain. Key words: construction, innovation, branded innovation, agile innovation, transformational leadership, information and communication technology, integrated teams Introduction The concept of innovation is often associated with the manufacturing, technology, and retail industries because of the necessity of keeping up with the tastes and preferences of a fickle consumer market. Construction is seldom associate with such dynamic changes, however, because the considerable investment and long-term duration of its products are seen to be better served by strict compliance with building codes, safety standards, and conventional practices to allow much leeway for experimentation and creative revision (Patterson, 2011, p. 18). Innovation in the construction business is a relatively novel concept that has developed in the recent few decades, the scope and scale of which still remains largely undefined as may be observed from the academic studies which have dealt on it. The following survey of related literature will seek to shed light on the generally accepted meaning of innovation in construction, the new paradigms and models emerging from a rethinking of this concept, and the importance of innovation to the construction business. Innovation: definition and effects According to Lundvall (1992, p. 8) innovation is described as potentially new processes, products or strategies that â€Å"result in radical breaks with the past, making a substantial part of accumulated knowledge obsolete.† It has also been defined as consisting of â€Å"the generation of a new idea and its implementation into a new product, process, or service, leading to the dynamic growth of the national economy and the increase of employment, as well as to a creation of pure profit for the innovative business enterprise† (Urabe, Child & Kagono, 1988, p. 3) The classic view espoused by Milton Friedman places priority on the profits realized by a business. In return for financial gains, business contributes much to the improvement of society. According to Ahlstrom (2010), the reverse is actually true – the principal goal of business is the development of innovative goods and services, which in turn generate economic growth and employme nt. Innovation thus improves peoples’