Integration of innovation through analytical hierarchy process (AHP) in project management and planning
Abstract
This paper examines the concept of innovation management in the construction industry by studying the major components of the innovation process such as the major drivers of innovation, barriers and obstacles that prevent innovation, the enablers that motivate innovation, the practices of innovation, and the benefits of innovation both at project and company level. This paper is based on the data collected by means of structured questionnaires and analyzed throughsurvey analysis. The survey, which consisted of 46 factors involved in the innovation process, was distributed to 121 different participants, and the collected data were analyzed by the relative importance index (RII), as well as the analytical hierarchy process (AHP). The RII rankings feed the AHP analysis as the first step to rank the factors. Later, the factors are ranked according to the AHP analysis. Based on these rankings, recommendations are made to contractors, consultants, project management professionals, owners and suppliers.
Keyword : innovation, analytical hierarchy process, innovation management, innovational planning, relative importance index, construction
How to Cite
Gunduz, M., & Alfar, M. (2019). Integration of innovation through analytical hierarchy process (AHP) in project management and planning. Technological and Economic Development of Economy, 25(2), 258-276. https://doi.org/10.3846/tede.2019.8063
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Brchner, J., Olofsson, T. (2012). Construction productivity measures for innovation projects. Journal of Construction Engineering and Management, 138(5), 670-677. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000481
Chan, I. Y. S., Liu, A. M. M., & Fellows, R. (2014). Role of leadership in fostering an innovation climate in construction firms. Journal of Management in Engineering, 30(6). https://doi.org/10.1061/(ASCE)ME.1943-5479.0000271
Chen, L., & Deng, X. (2018). A modified method for evaluating sustainable transport solutions based on AHP and Dempster-Shafer evidence theory. Applied Sciences (Switzerland), 8(4), 563. https://doi.org/10.3390/app8040563
Demaid, A., & Quintas, P. (2006). Knowledge across cultures in the construction industry: Sustainability, innovation and design. Technovation, 26(5-6), 603-610. https://doi.org/10.1016/j.technovation.2005.06.003
Deng, X., & Deng, Y. (2019). D-AHP method with different credibility of information. Soft Computing, 23(2), 683-691. https://doi.org/10.1007/s00500-017-2993-9
Esmaeili, B., & Hallowell, M. R. (2012). Diffusion of safety innovations in the construction industry. Journal of Construction Engineering and Management, 138(8), 955-963. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000499
Gambatese, J. A., & Hallowell, M. (2011). Factors that influence the development and diffusion of technical innovations in the construction industry. Construction Management and Economics, 29(5), 507-517. https://doi.org/10.1080/01446193.2011.570355
Gopalakrishnan, S., & Damanpour, F. (1994). Patterns of generation and adoption of innovation in organizations: Contingency models of innovation attributes. Journal of Engineering and Technology Management, 11(2), 95-116. https://doi.org/10.1016/0923-4748(94)90001-9
Han, Y., & Deng, Y. (2018). An evidential fractal analytic hierarchy process target recognition method. Defence Science Journal, 68(4), 367-373. https://doi.org/10.14429/dsj.68.11737
Hadidi, L. A., & Khater, M. A. (2015). Loss prevention in turnaround maintenance projects by selecting contractors based on safety criteria using the analytic hierarchy process (AHP). Journal of Loss Prevention in the Process Industries, 34, 115-126. https://doi.org/10.1016/j.jlp.2015.01.028
Hervas-Oliver, J.-L., Sempere-Ripoll, F., Boronat-Moll, C., & Rojas, R. (2015). Technological innovation without R&D: unfolding the extra gains of management innovations on technological performance. Technology Analysis and Strategic Management, 27(1), 19-38. https://doi.org/10.1080/09537325.2014.944147
Horta, I. M., Camanho, A. S., & Moreira Da Costa, J. (2012). Performance assessment of construction companies: A study of factors promoting financial soundness and innovation in the industry. International Journal of Production Economics, 137(1), 84-93. https://doi.org/10.1016/j.ijpe.2012.01.015
Irwin, J. G., Hoffman, J. J., & Lamont, B. T. (1998). The effect of the acquisition of technological innovations on organizational performance: A resource-based view. Journal of Engineering and Technology Management – JET-M, 15(1), 25-54. https://doi.org/10.1016/S0923-4748(97)00028-3
Kajander, J.-K., Sivunen, M., Vimpari, J., Pulkka, L., & Junnila, S. (2012). Market value of sustainability business innovations in the construction sector. Building Research and Information, 40(6), 665-678. https://doi.org/10.1080/09613218.2012.703893
Kimmel, S. C., Toohey, N. M., & Delborne, J. A. (2016). Roadblocks to responsible innovation: Exploring technology assessment and adoption in U.S. public highway construction. Technology in Society, 44, 66-77. https://doi.org/10.1016/j.techsoc.2015.12.002
Liu, H., Skibniewski, M. J., & Wang, M. (2016). Identification and hierarchical structure of critical success factors for innovation in construction projects: Chinese perspective. Journal of Civil Engineering and Management, 22(3), 401-416. https://doi.org/10.3846/13923730.2014.975739
Loosemore, M. (2015). Construction innovation: Fifth generation perspective. Journal of Management in Engineering, 31(6). https://doi.org/10.1061/(ASCE)ME.1943-5479.0000368
Miozzo, M., Desyllas, P., Lee, H.-F., & Miles, I. (2016). Innovation collaboration and appropriability by knowledge-intensive business services firms. Research Policy, 45(7), 1337-1351. https://doi.org/10.1016/j.respol.2016.03.018
Mir, M., Casadesús, M., Petnji, L. H. (2016). The impact of standardized innovation management systems on innovation capability and business performance: An empirical study. Journal of Engineering and Technology Management – JET-M, 41, 26-44. https://doi.org/10.1016/j.jengtecman.2016.06.002
Murphy, M. E., Perera, S., & Heaney, G. (2015). Innovation management model: a tool for sustained implementation of product innovation into construction projects. Construction Management and Economics, 33(3), 209-232. https://doi.org/10.1080/01446193.2015.1031684
Nagano, M. S., Stefanovitz, J. P., & Vick, T. E. (2014). Innovation management processes, their internal organizational elements and contextual factors: An investigation in Brazil. Journal of Engineering and Technology Management – JET-M, 33, 63-92. https://doi.org/10.1016/j.jengtecman.2014.02.004
Ozorhon, B. (2013). Analysis of construction innovation process at project level. Journal of Management in Engineering, 29(4), 455-463. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000157
Ozorhon, B., Abbott, C., & Aouad, G. (2014). Integration and leadership as enablers of innovation in construction: Case study. Journal of Management in Engineering, 30(2), 256-263. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000204
Ozorhon, B., Oral, K., & Demirkesen, S. (2016). Investigating the components of innovation in construction projects. Journal of Management in Engineering, 32(3). https://doi.org/10.1061/(ASCE)ME.1943-5479.0000419
Pellicer, E., Yepes, V., Correa, C. L., & Alarcón, L. F. (2014). Model for systematic innovation in construction companies [Modelo para la Innovación Sistemática en Empresas Constructoras]. Journal of Construction Engineering and Management, 140(4). https://doi.org/10.1061/(ASCE)CO.1943-7862.0000700
Pérez-Cano, C. (2013). Firm size and appropriability of the results of innovation. Journal of Engineering and Technology Management – JET-M, 30(3), 209-226. https://doi.org/10.1016/j.jengtecman.2013.03.002
Saaty, T. L., & Vargas, L. G. (1979). Estimating technological coefficients by the analytic hierarchy process. Socio-Economic Planning Sciences, 13(6), 333-336. https://doi.org/10.1016/0038-0121(79)90015-6
Šaparauskas, J., & Turskis, Z. (2006). Evaluation of construction sustainability by multiple criteria methods. Technological and Economic Development of Economy, 12(4), 321-326.
Saunila, M., & Ukko, J. (2014). Intangible aspects of innovation capability in SMEs: Impacts of size and industry. Journal of Engineering and Technology Management – JET-M, 33, 32-46. https://doi.org/10.1016/j.jengtecman.2014.02.002
Scaringella, L., & Burtschell, F. (2017). The challenges of radical innovation in Iran: Knowledge transfer and absorptive capacity highlights – evidence from a joint venture in the construction sector. Technological Forecasting and Social Change, 122C, 151-169. https://doi.org/10.1016/j.techfore.2015.09.013
Shibeika, A., & Harty, C. (2015). Diffusion of digital innovation in construction: a case study of a UK engineering firm. Construction Management and Economics, 33(5-6), 453-466. https://doi.org/10.1080/01446193.2015.1077982
Tatum, C. B. (2018). Construction engineering research: integration and innovation. Journal of Construction Engineering and Management, 144(3). https://doi.org/10.1061/(ASCE)CO.1943-7862.0001445
Villarreal, O., & Calvo, N. (2015). From the Triple Helix model to the Global Open Innovation model: A case study based on international cooperation for innovation in Dominican Republic. Journal of Engineering and Technology Management – JET-M, 35, 71-92. https://doi.org/10.1016/j.jengtecman.2014.10.002
Yepes, V., Pellicer, E., Alarcón, L. F., & Correa, C. L. (2016). Creative innovation in Spanish construction firms. Journal of Professional Issues in Engineering Education and Practice, 142(1). https://doi.org/10.1061/(ASCE)EI.1943-5541.0000251
Yu, W.-D., Cheng, S.-T., Wu, C.-M., & Lou, H.-R. (2012). A self-evolutionary model for automated innovation of construction technologies. Automation in Construction, 27, 78-88. https://doi.org/10.1016/j.autcon.2012.04.018
Zeng, S., Xie, X., & Tam, C. (2010). Evaluating innovation capabilities for science parks: A system model [Mokslo ir technologijų parkų inovacinio pajėgumo vertinimas: Sistemos modelis]. Technological and Economic Development of Economy, 16(3), 397-413. https://doi.org/10.3846/tede.2010.25
Zhou, X., Hu, Y., Deng, Y., Chan, F. T. S., & Ishizaka, A. (2018). A DEMATEL-based completion method for incomplete pairwise comparison matrix in AHP. Annals of Operations Research, 271(2), 1045-1066. https://doi.org/10.1007/s10479-018-2769-3
Bento, N., & Fontes, M. (2015). The construction of a new technological innovation system in a follower country: Wind energy in Portugal. Technological Forecasting and Social Change, 99, 197-210. https://doi.org/10.1016/j.techfore.2015.06.037
Bi, K., Huang, P., & Wang, X. (2016). Innovation performance and influencing factors of low-carbon technological innovation under the global value chain: A case of Chinese manufacturing industry. Technological Forecasting and Social Change, 111(October 2016), 275-284. https://doi.org/10.1016/j.techfore.2016.07.024
Bolívar-Ramos, M. T., García-Morales, V. J., & García-Sánchez, E. (2012) Technological distinctive competencies and organizational learning: Effects on organizational innovation to improve firm performance. Journal of Engineering and Technology Management – JET-M, 29(3), 331-337. https://doi.org/10.1016/j.jengtecman.2012.03.006
Brchner, J., Olofsson, T. (2012). Construction productivity measures for innovation projects. Journal of Construction Engineering and Management, 138(5), 670-677. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000481
Chan, I. Y. S., Liu, A. M. M., & Fellows, R. (2014). Role of leadership in fostering an innovation climate in construction firms. Journal of Management in Engineering, 30(6). https://doi.org/10.1061/(ASCE)ME.1943-5479.0000271
Chen, L., & Deng, X. (2018). A modified method for evaluating sustainable transport solutions based on AHP and Dempster-Shafer evidence theory. Applied Sciences (Switzerland), 8(4), 563. https://doi.org/10.3390/app8040563
Demaid, A., & Quintas, P. (2006). Knowledge across cultures in the construction industry: Sustainability, innovation and design. Technovation, 26(5-6), 603-610. https://doi.org/10.1016/j.technovation.2005.06.003
Deng, X., & Deng, Y. (2019). D-AHP method with different credibility of information. Soft Computing, 23(2), 683-691. https://doi.org/10.1007/s00500-017-2993-9
Esmaeili, B., & Hallowell, M. R. (2012). Diffusion of safety innovations in the construction industry. Journal of Construction Engineering and Management, 138(8), 955-963. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000499
Gambatese, J. A., & Hallowell, M. (2011). Factors that influence the development and diffusion of technical innovations in the construction industry. Construction Management and Economics, 29(5), 507-517. https://doi.org/10.1080/01446193.2011.570355
Gopalakrishnan, S., & Damanpour, F. (1994). Patterns of generation and adoption of innovation in organizations: Contingency models of innovation attributes. Journal of Engineering and Technology Management, 11(2), 95-116. https://doi.org/10.1016/0923-4748(94)90001-9
Han, Y., & Deng, Y. (2018). An evidential fractal analytic hierarchy process target recognition method. Defence Science Journal, 68(4), 367-373. https://doi.org/10.14429/dsj.68.11737
Hadidi, L. A., & Khater, M. A. (2015). Loss prevention in turnaround maintenance projects by selecting contractors based on safety criteria using the analytic hierarchy process (AHP). Journal of Loss Prevention in the Process Industries, 34, 115-126. https://doi.org/10.1016/j.jlp.2015.01.028
Hervas-Oliver, J.-L., Sempere-Ripoll, F., Boronat-Moll, C., & Rojas, R. (2015). Technological innovation without R&D: unfolding the extra gains of management innovations on technological performance. Technology Analysis and Strategic Management, 27(1), 19-38. https://doi.org/10.1080/09537325.2014.944147
Horta, I. M., Camanho, A. S., & Moreira Da Costa, J. (2012). Performance assessment of construction companies: A study of factors promoting financial soundness and innovation in the industry. International Journal of Production Economics, 137(1), 84-93. https://doi.org/10.1016/j.ijpe.2012.01.015
Irwin, J. G., Hoffman, J. J., & Lamont, B. T. (1998). The effect of the acquisition of technological innovations on organizational performance: A resource-based view. Journal of Engineering and Technology Management – JET-M, 15(1), 25-54. https://doi.org/10.1016/S0923-4748(97)00028-3
Kajander, J.-K., Sivunen, M., Vimpari, J., Pulkka, L., & Junnila, S. (2012). Market value of sustainability business innovations in the construction sector. Building Research and Information, 40(6), 665-678. https://doi.org/10.1080/09613218.2012.703893
Kimmel, S. C., Toohey, N. M., & Delborne, J. A. (2016). Roadblocks to responsible innovation: Exploring technology assessment and adoption in U.S. public highway construction. Technology in Society, 44, 66-77. https://doi.org/10.1016/j.techsoc.2015.12.002
Liu, H., Skibniewski, M. J., & Wang, M. (2016). Identification and hierarchical structure of critical success factors for innovation in construction projects: Chinese perspective. Journal of Civil Engineering and Management, 22(3), 401-416. https://doi.org/10.3846/13923730.2014.975739
Loosemore, M. (2015). Construction innovation: Fifth generation perspective. Journal of Management in Engineering, 31(6). https://doi.org/10.1061/(ASCE)ME.1943-5479.0000368
Miozzo, M., Desyllas, P., Lee, H.-F., & Miles, I. (2016). Innovation collaboration and appropriability by knowledge-intensive business services firms. Research Policy, 45(7), 1337-1351. https://doi.org/10.1016/j.respol.2016.03.018
Mir, M., Casadesús, M., Petnji, L. H. (2016). The impact of standardized innovation management systems on innovation capability and business performance: An empirical study. Journal of Engineering and Technology Management – JET-M, 41, 26-44. https://doi.org/10.1016/j.jengtecman.2016.06.002
Murphy, M. E., Perera, S., & Heaney, G. (2015). Innovation management model: a tool for sustained implementation of product innovation into construction projects. Construction Management and Economics, 33(3), 209-232. https://doi.org/10.1080/01446193.2015.1031684
Nagano, M. S., Stefanovitz, J. P., & Vick, T. E. (2014). Innovation management processes, their internal organizational elements and contextual factors: An investigation in Brazil. Journal of Engineering and Technology Management – JET-M, 33, 63-92. https://doi.org/10.1016/j.jengtecman.2014.02.004
Ozorhon, B. (2013). Analysis of construction innovation process at project level. Journal of Management in Engineering, 29(4), 455-463. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000157
Ozorhon, B., Abbott, C., & Aouad, G. (2014). Integration and leadership as enablers of innovation in construction: Case study. Journal of Management in Engineering, 30(2), 256-263. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000204
Ozorhon, B., Oral, K., & Demirkesen, S. (2016). Investigating the components of innovation in construction projects. Journal of Management in Engineering, 32(3). https://doi.org/10.1061/(ASCE)ME.1943-5479.0000419
Pellicer, E., Yepes, V., Correa, C. L., & Alarcón, L. F. (2014). Model for systematic innovation in construction companies [Modelo para la Innovación Sistemática en Empresas Constructoras]. Journal of Construction Engineering and Management, 140(4). https://doi.org/10.1061/(ASCE)CO.1943-7862.0000700
Pérez-Cano, C. (2013). Firm size and appropriability of the results of innovation. Journal of Engineering and Technology Management – JET-M, 30(3), 209-226. https://doi.org/10.1016/j.jengtecman.2013.03.002
Saaty, T. L., & Vargas, L. G. (1979). Estimating technological coefficients by the analytic hierarchy process. Socio-Economic Planning Sciences, 13(6), 333-336. https://doi.org/10.1016/0038-0121(79)90015-6
Šaparauskas, J., & Turskis, Z. (2006). Evaluation of construction sustainability by multiple criteria methods. Technological and Economic Development of Economy, 12(4), 321-326.
Saunila, M., & Ukko, J. (2014). Intangible aspects of innovation capability in SMEs: Impacts of size and industry. Journal of Engineering and Technology Management – JET-M, 33, 32-46. https://doi.org/10.1016/j.jengtecman.2014.02.002
Scaringella, L., & Burtschell, F. (2017). The challenges of radical innovation in Iran: Knowledge transfer and absorptive capacity highlights – evidence from a joint venture in the construction sector. Technological Forecasting and Social Change, 122C, 151-169. https://doi.org/10.1016/j.techfore.2015.09.013
Shibeika, A., & Harty, C. (2015). Diffusion of digital innovation in construction: a case study of a UK engineering firm. Construction Management and Economics, 33(5-6), 453-466. https://doi.org/10.1080/01446193.2015.1077982
Tatum, C. B. (2018). Construction engineering research: integration and innovation. Journal of Construction Engineering and Management, 144(3). https://doi.org/10.1061/(ASCE)CO.1943-7862.0001445
Villarreal, O., & Calvo, N. (2015). From the Triple Helix model to the Global Open Innovation model: A case study based on international cooperation for innovation in Dominican Republic. Journal of Engineering and Technology Management – JET-M, 35, 71-92. https://doi.org/10.1016/j.jengtecman.2014.10.002
Yepes, V., Pellicer, E., Alarcón, L. F., & Correa, C. L. (2016). Creative innovation in Spanish construction firms. Journal of Professional Issues in Engineering Education and Practice, 142(1). https://doi.org/10.1061/(ASCE)EI.1943-5541.0000251
Yu, W.-D., Cheng, S.-T., Wu, C.-M., & Lou, H.-R. (2012). A self-evolutionary model for automated innovation of construction technologies. Automation in Construction, 27, 78-88. https://doi.org/10.1016/j.autcon.2012.04.018
Zeng, S., Xie, X., & Tam, C. (2010). Evaluating innovation capabilities for science parks: A system model [Mokslo ir technologijų parkų inovacinio pajėgumo vertinimas: Sistemos modelis]. Technological and Economic Development of Economy, 16(3), 397-413. https://doi.org/10.3846/tede.2010.25
Zhou, X., Hu, Y., Deng, Y., Chan, F. T. S., & Ishizaka, A. (2018). A DEMATEL-based completion method for incomplete pairwise comparison matrix in AHP. Annals of Operations Research, 271(2), 1045-1066. https://doi.org/10.1007/s10479-018-2769-3