DRIVING SUSTAINABLE INNOVATION IN CONSTRUCTION COMPANIES

misbe2011 Tracking Number 109

By adopting a theoretical framework from strategic niche management research (SNM) this paper presents an analysis of the innovation system of the Danish Construction industry. Theories within SNM look upon innovation in a sector as a socio-technical phenomenon and identify three levels of socio-technical interaction within which sectorial innovation can be explained. The analysis shows a multifaceted landscape of innovation around an existing regime, built in the existing ways of working and developed over generations. The regime is challenged from various niches and the socio-technical landscape through trends as globalization. Three niches (Lean Construction, BIM and System Deliveries) are subject to a detailed analysis showing partly incompatible rationales and various degrees of innovation potential. Based on the analysis, the paper further explores how companies can be introduced as drivers for innovation in the construction industry. By bridging SNM with business development activities through an adapted version of Ansoffs growth matrix, companies continuously and consciously can develop a competitive advantage by targeting new and existing markets with new or existing competencies/niches. The paper concludes with a discussion of how this approach can help to solve the challenge of retrofitting the existing building stock and thereby enabling the development a low energy consuming society.