CHAPTER TWO LITERATURE REVIEW
The construction industry is often not perceived as offering an environment that nurtures creativity. According to Dale (2007), “Construction is a unique environment and by definition is a creative industryâ€. He supported this notion by stating that no single project is the same as another and that diversity breeds innovation and innovative problem solving at the practical level.
The industry is evolving changing and seeking more integration, innovation and simply better schemes for providing public services and products. Pakkala (2000), in his work titled “Innovative Project Delivery Method for Infrastructure†maintained that many countries around the world are attempting to answer the key challenges to the construction and maintenance of the infrastructure networks that are essential to the economic stability within their respective countries. He further stressed that society is rapidly changing and public clients are trying to meet the critical needs of this fast-paced society. He listed ageing infrastructures, productivity, acute regional development, environmental issues and sprawling growth as causing concern to the management and administration of infrastructure networks. These factors are strong incentives for seeking alternative and innovative means to procure the main foundations of society and maintain economic stability.
Pale (2007), stated that research conducted by the office of national statistics shows that construction spends comparatively small amount on innovation. But it is evident that the issue of sustainability is clearly at the top of the agenda for innovation in construction. The Australian Bureau
Statistics (ABS) Data on Construction Industry Innovation (2006), indicated that businesses within the construction industry spend around 0.5% their total expenditure on innovation in organizational processes and that innovation in the construction industry was at approximately 31%.
If innovative potential is desired for the entire construction and infrastructure sector, innovative methods should be considered to transform the construction and infrastructure industry. Not only will innovation be enhanced, but also cost savings and value added services will be realized.
2.2 CONCEPT OF INNOVATION (INNOVATION DEFINED) Innovation in construction can be studied from many different perspectives.
Widen (2003), Proffered that traditionally, innovation in general can be studied from either an innovation system perspective or from a single innovation company.
He maintained that simplified innovation systems research deals with how the different companies, government and other institutions relate to each other in the innovation superstructure, while research on the company often deals with its innovation capabilities, strategies etc.
These different ways of looking at innovation have taken place in the construction industry. There have been a number of studies covering, for example, how national research policies support construction innovation and how projects should be organized.
Dodgson et al (1996), defined innovation as the process through which firms seek to acquire and build upon their distributive technological
competence, understood as the set of resources a firm possesses and the way in which these are transformed by innovative capabilities.
According to the Civil Engineering Research Foundation (CERF) (2002), innovation in construction is considered to be “The act of introducing and using new ideas, technologies, products and/ or processes aimed at solving problems, viewing things differently, improving efficiency and effectiveness, or enhancing standards of livingâ€.
Firth et al (1999), defined innovation thus “Innovation is the application of new knowledge to industry, and includes new products, new processes, social and organizational changeâ€.
Atkin (1999), opined that it is when an act, as an idea begins to impact on its environment.
The Australian Bureau of Statistics (ABS) (2006) also defined innovation as “The introduction of any new or significant goals or services; the introduction of new operational processes or the implementation of new organizational/managerial processesâ€.
Maron (2008), Opined that a technological product innovation is the implementation/commercialization of a product with improved characteristics so as to deliver objectively new or improved services to the customer.
Dale (2007), in his further attempt to explain innovation tried to separate it from Research and Development (R & D) by stating that innovation is a product of R & D, but in his attempt to define R & D, he stated that it is a process that is undertaken to induce innovation.
The definition provided by Slaughter (1998), seems more broadly accepted by participants and academics. She defined innovation as follows: “Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing itâ€.
From the foregoing, it is evident that innovation does not just seek to solve problems or try to seek solution to an existing problem, but it embraces the concept of creativity entirely. It tends to look at better ways of doing thing even when it is perceived that the present ways, methods, processes of doing things lack criticism.
The similarities among these definitions is that something new is created; a product or a process, and put to use.
We can therefore argue that innovation involves the act of researching acquiring, introducing and building up new ideas, technology, processes and products aimed at not just for solving problems, but improving efficiency and effectiveness, and thus enhancing the standard of living.
That is to say that innovation must not just look only at improving a company or an organization competitiveness in the commercial world but should also seek to enhance living standards.
2.3 NEED FOR INNOVATION IN THE CONSTRUCTION INDUSTRY
The need for innovation in the construction industry cannot be underestimated. Innovation needs to be at the heart of the construction industry’s efforts to improve productivity and develop new capabilities, business and markets, and also contribute to enhancing the standard of living as well as creating new opportunities.
Changes in global markets, increased customer expectations and government pressure have all led to innovation becoming a key focus for the construction sector.
Maron (2008), warned that should the industry fail to be innovative, there is a risk that it either will lag behind in the international perspective or that the whole industry will disappear from the country.
The higher the levels of innovation in the construction industry the greater the likelihood that it will increase its contribution to economic growth. Blayse et al (2004), stated that in most countries, there is a perception that the industry is not generally innovative and that there is much room for improvement. Dale (2007), in his survey report titled “Improvement in Constructionâ€, stated, “It is estimated that building and their consumption represent 40% of energy use within the European Union. This means that buildings, in contrast to popular belief contribute more to green house gases than trafficâ€.
With concern over carbon emissions at a historic peak, the construction industry has never been in greater need of innovation technologies and processes.
It is evident that the clamour for innovation and innovative incentives in the construction industry is not just for competitiveness of firms, improved productivity or technology, or enhancing the living standards, also the issue of sustainability of environment seems to be top on agenda for the recent clamour for innovation. Even most countries have enforced this through adjustment of their building regulations to ensure that “green†construction is practiced by construction firms and construction industry.