The Determinants of Firms' Innovativeness on Construction Technology in Malaysian Heavy Construction Sector

The peculiar characteristics of constructed products significantly differentiate construction from manufacturing. Past researches seem have been given greatest attention and concentration to the innovation in manufacturing sector. This research assesses the determinants of firm’s innovativeness in construction sector, which has been neglected by researchers despite its immense importance to the technological advancement in affecting the degree of innovation implementation and adoption. A total of fourteen hypothesises were developed and tested. These hypotheses are established within the context of heavy construction sector characteristics that are consistently suggested to be significant determinants of firm innovativeness. These characteristics include (1) market structure characteristics, (2) organisation and task characteristics, (3) adopter industry competitive environment, and (4) external cooperation linkage. This study has reviewed the problem of determinants of firms’ innovativeness in technological innovation the Malaysian heavy construction sector to meet the three outlined objectives. Hypotheses were tested utilising survey data collect from Malaysia Construction Industry Development Board, CIDB Grade 7 construction firms throughout the Malaysia. The relationships of the identified four domains were discussed in this research. The results indicate that adopter industry competitive environment and external cooperation linkage are among the variables that significantly affect the degree of innovation implementation and adoption. Results also indicate that 13 out of 14 hypothesises are supported and positively affecting the degree of innovation implementation and adoption. Lastly, a new model closely reflects the essence of the determinants of firm’s innovativeness in heavy construction sector was formulated. Therefore, the results suggest that increasing the rate of innovation implementation and adoption may be enhanced to a greater degree by increasing adopter industry competitive environment and external linkage rather than implementing market structure environment characteristics or organisation and task characteristics. This research has value and has advanced knowledge in construction industry, especially, and hence the aim has successfully attained.