Assessing the level of innovation practices in built projects to create value for the market and to ensure sustainability and recovery of the construction industry within a recession; the case of J. C. van der Linde and venter projects in the Tshwane region.

Abstract

Due to a weak economic climate, it has become increasingly difficult for construction companies to sustain their business and stay competitive by using innovation in their daily operations. Hence, the construction sector is lagging in innovation, it has become increasingly important to look at innovative strategies to stay competitive. The study examines the opinions of employees in JC van der Linde and Venter Projects, and their assessment of the significance of the use and relevance of innovation strategies in the construction sector. The data collected in respect of employees’ perceptions of innovation suggest the importance and relevance thereof. An explanatory research design was adopted where the primary instrument for data collection was a questionnaire. A sample of 75 employees were collected from a target of 236 employees in different construction project sites in Tshwane region. The study found respondents understood the importance of innovation, but lacks understanding of how innovation frameworks fit into the organisation as the organisation lacks a formal innovation framework linked to strategic priorities. The study is therefore in agreement that the industry is slow to innovate A synthesis of expertise is needed in different domains to grow and innovate the company. This is a major concern that must be addressed at a strategic level as innovation have to be initiated from a managerial with clear strategic innovation plans incorporated in the strategic plan of the company. The study recommends that construction firms must invest in research and development to exploit the potential of innovation for organisational growth and sustainability. The study concludes that innovation must form part of a strategic plan and driven by top management for it to be effective. Implementation of any innovation plan can only be instituted from the top, hence if innovation plans are not formalised it will not be effective without a formal framework. Therefore, it is recommended that the 70/20/10 rule of innovation must be incorporated into strategic objectives to make innovation part of a formal process, which can be measured in terms of Key Result Areas (KRAs) in the form of a Balanced Scorecard.