Innovation in Small Construction Firms

This paper provides an interim report on an eighteen month research project in the UK involving in-depth case and action research studies of seven small construction companies to understand the role and significance of innovation for them. The work has so far resulted in a model of the factors relevant to innovation and a model of different levels of innovation linked to typical company-types and market conditions. The second phase of the project will involve action research and the plans for this will be outlined. Introduction The capacity and ability of construction firms to successfully innovate is viewed as central to enhancing the performance of both individual firms and the construction industry as a whole. Small to medium sized enterprises (SMEs) form a substantial proportion of the UK construction industry, with some ninety per cent of companies employing less than ten staff. Improvement in the innovation performance of SMEs is thus any important priority. This paper presents interim results of a project focusing on innovation in small construction firms. The paper is structured as follows. First, the project aims will be outlined. Second, key results will be given. Finally, the focus of next phase of the project is set out. Project aims and methodology The eighteen month EPSRC/DETR funded ‘Innovation in Small Construction Companies’ project has three principal objectives: • To clarify the meaning of innovation in small construction forms, in terms of o The motivation to innovate, and o The appropriateness to innovate • To explain how small construction firms can effectively and efficiently create, manage and exploit appropriate innovation • To deliver practice-based models, tools and techniques that support the creation of fertile environments for appropriate innovation; and The collaborative project involves seven small construction firms, comprising three contractors and four professional service firms ranging from eleven to twenty-six staff.