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Technology and innovation development in Ethiopian construction industry: the challenges and improvement mechanisms

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Purpose The purpose of this study is to investigate the challenges and potential improvement mechanisms for the development of technology and innovation in the Ethiopian construction industry. Design/methodology/approach In this study both quantitative and qualitative research approaches were adopted. While a structured questionnaire was used for the quantitative data collection, semi-structured interview was used for qualitative data collection. In analyzing the quantitative data, mean score was used to rank the variables and factor analysis was conducted to identify the underlying dimensions of the research constructs. The qualitative data was analyzed thematically focusing on specific objectives of the study; the challenges and improvement mechanisms of technology and innovation development. Findings The findings indicate that the major challenges are nature of the industry and lack of awareness, weak capacity of companies and the regulatory instruments, inadequate tender duration and poor monitoring and controlling practice. The suggested improvement mechanisms are effective coordination of the process and awareness creation, promoting technology and innovation in the procurement process and technology and innovation consideration in construction project registration. Originality/value Effectiveness of construction industry improvement programmes is affected by inappropriateness of the adopted implementation mechanisms. Understanding the operating environment; the enablers and potential barriers, is important for the success of any envisioned improvement programme. The improvement framework proposed by this study indicates the potential intervention areas and improvement mechanisms to effectively induce and enhance technology and innovation development in the construction industry. Major pillars of the improvement framework are improving regulatory framework, raising awareness and stakeholder engagement and continual monitoring and controlling of the practice.

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... Appropriate selection of technologies, considering the perception, commitment, and capacity of the organization, are important to diffuse and sustain the technologies and innovation effectively (Sepasgozar, Loosemore, and Davis 2016). These are associated with the regulatory system applied to promote and regulate the industry (Mengistu, Ashene, and Halabo 2023a). Hence, the subsequent discussion focuses on the role of the stakeholders and the regulatory instruments. ...
... Similarly, application of the relevant regulatory instruments in harmony will enhance technology and innovation development. Integration of the different regulatory instruments, e.g., technology and innovation considerations in project registration practice will enhance the effectiveness of the procurement practice as it would be used as evidence for the prequalification of bidders (Mengistu, Ashene, and Halabo 2023a). Close observation of the intervention mechanisms to enhance stakeholders' engagement indicates that there is a clear relationship between the stakeholders' role and the regulatory instruments. ...
... However, this too needs positive action from the clients who must consistently demand initiatives. The weak capacity of contractors and consultants is indicated as a challenge to technology and innovation development in Ethiopia (Mengistu, Ashene, and Halabo 2023a). Interviews with the contractors and the consultants indicated that there are no incentive mechanisms in the industry. ...
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The purpose of this study is to assess the role of stakeholders and the applicable regulatory instruments in ensuring technology and innovation development (TID) in Ethiopian construction industry. A structured questionnaire was developed to assess the engagement level of major stakeholders and effectiveness of the applicable regulatory instruments. In analyzing the quantitative data, while mean score was used to rank the variables, factor analysis was conducted to identify the underlying dimensions. A semi-structured interview was conducted to get detail insight about the practice. In addition, document analysis was conducted to assess the strengths and weaknesses of the applicable regulatory instruments. The qualitative data was analyzed thematically focusing on the purpose of the study. Despite their significant role, the stakeholders' engagement level is found to be unsatisfactory. Similarly, the findings suggest that there is room for improvement in the relevant regulatory instruments to better accommodate TID. The identified improvement dimensions are associated with timeliness, effectiveness, and appropriateness of the applicable regulatory instruments. These are attributed to the poor coordination and weak capacity of the stakeholders. Findings of this study help the concerned stakeholders in indicating the intervention areas to effectively enhance TID in the construction industry.
... Numerous studies have investigated the Ethiopian CI's overall performance (e.g., Ayalew, Dakhli and Lafhaj, 2016;Ofori, 2018;Mengistu, 2019;Cheng and Darsa, 2021;Mengistu, Ashene and Halabo, 2023). However, only a few studies have focused explicitly on SMCs (e.g., Hiwot, 2012;Addisu, 2013;Borena, 2016;Arega, 2019;Ferejo et al., 2022;Era, Reddy and Mohan, 2023). ...
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Small and medium contractors (SMCs) significantly contribute to socio-economic development by creating employment opportunities and establishing inter-sectoral links with other sectors of the economy. Despite their significant contribution, evidence suggests their competency is underdeveloped due to several obscuring factors. As a part of a larger research, this study aimed to explore the endogenic factors affecting the sustainable competency of SMCs in the Ethiopian construction industry (CI). A thorough literature review was conducted to identify 65 endogenic factors arising from seven core sources. A questionnaire survey was used to collect the perceptions of industry stakeholders. Descriptive and inferential statistics were used for analysis. Findings indicated 63 significant factors affecting sustainable competency and the top factors were: employee’s strategic and operational decision- making power, organisational leadership style, the existence of matured and developed entrepreneurial mindsets, the availability of institutional and business relationships, the inability to access financial resources, the lack of project management skills and low-profit margin due to competition. Factor analysis also identified 17 components. The findings from the study indicate the need to prioritise the areas of competitiveness improvement and the practical implications of making informed decisions for entrepreneurs. The findings of this study can also be used to develop a framework to create a conducive business environment.
... Shojaei and Burgess (2022) discussed non-technical barriers (e.g., sociocultural, individual) affecting the adoption of digital innovation in the UK construction industry. Mengistu et al. (2023) believed that the nature of the industry, the weak capacity of companies, and the lack of awareness are the main factor affecting technological innovation in the Ethiopian construction industry. A few other scholars have evaluated the technological innovation level of the construction field. ...
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The absence of extensive and accurate information on the construction industries of developing countries constitutes an obstacle to the assessment of their strengths and weaknesses and preparation of programmes for their improvement. This paper considers a scheme for the collection, processing and storage of construction information on a national basis. It discusses the potential benefits of such a scheme, the essential features a central data bank might have, and concludes that although it might be difficult to institute, countries that are able to do so should consider the establishment of such a unit.
Article
Purpose While corruption has long been recognized as a destructive social problem, the subject has not yet been given much attention in the literature of the management of procurement of infrastructure projects in Ghana. The purpose of this paper is to explore and discuss corruption practices inherent in public procurement of infrastructural projects in Ghana with the aim of identifying corruption related challenges that must be addressed in order to actualize the expected economic gains of infrastructural projects. Design/methodology/approach Drawing extensively on existing literature and published data, the methodology adopted for the paper consisted of multi‐stage critical review of pertinent literature; review of 2007 Annual Report of the Public Procurement Authority and review of the Public Procurement Act, 2003 (Act 663). The study assumes value‐laden axiological philosophy, where the values and experiences of the authors provided the basis for the discussion. Findings Conflict of interest, bribery, embezzlement, kickbacks, tender manipulation and fraud are observed corruption practices in the Ghanaian infrastructure projects delivery system. The severity of corruption practices have intensified the search for more innovative means of delivering infrastructure projects that will achieve value for money. In the pursuit to control corruption practices, this would require constitution of a sound procurement system and pro‐social equity policies that would foster good governance, corporate social responsibility, transparency, accountability, judicious public expenditure and national progress. The Public Procurement Act 2003 (Act 663) is observed to proffer solutions for these underlying constructs but not without challenges. Research limitations/implications The nature of the research is review and explanatory without any empirical analysis to support the discussions and thus the results cannot be generalized on a broader context of public procurement practice in Ghana. Practical implications Implementation of sound procurement performance measurements would be imperative in the bid to curb corruption practices. The paper suggested a number of business approaches to combat corrupt practices in Ghana, which are explained in terms of political, psychological, technical, operational and retaliatory measures. In this paper, it is proposed that knowledge about and debating corruption related issues is just as important to the modern public procurement as are the abilities to creatively and logically introduce monitoring systems when planning, executing and completing projects. Originality/value The work is novel providing meaningful insights into conceptual basis for a detailed empirical analysis. Being a pioneering study, further research tailored to compare the extent of corruption practices in various sectors of the economy of Ghana would be novel.
Article
Innovation is vital to successful, long-term company performance in the construction industry. Understanding the innovation process, how innovation can be enhanced and how it can be measured are key steps to managing and enhancing innovation. The factors that affect innovation on a project were identified, as well as how these factors can be used to measure the level of innovation on a project, and the practices and processes that encourage and facilitate innovative changes. Case studies of construction projects in the United States revealed three necessary components of innovation: idea generation, opportunity and diffusion. A variety of practices are used to optimize each component including support and commitment from the owner/client and firm upper management, workforce and project team integration and diversity. Applying the practices identified in the research leads to enhanced innovation through better communication among project team members, integration of the design and construction disciplines, more efficient designs, development of unique ways of completing work and sharing of the lessons learned. The end result of innovation will be projects that successfully meet and exceed cost, quality, schedule and safety goals.
Article
Some technical innovations diffuse rapidly throughout the construction industry while others take a long time or are never integrated into everyday practice. Understanding the initiation, development, implementation and outcomes of successful technical innovations within the construction industry provides guidance for the improvement of the innovation process. To further this understanding, innovation generating organizations (IGOs) in the construction industry were surveyed and the data were statistically analysed. Two sources were used to identify newly developed products, technologies and management strategies: the Construction Innovation Forum's NOVA Award website and the Emerging Construction Technologies (ECT) website. A total of 233 innovative products were identified from the two websites. The results showed that there are many statistically significant motivating factors for investment in the initial development of successful technical innovation, barriers and enablers to efficient diffusion and innovation outcomes on construction projects. Additionally, successful development, implementation and diffusion of an innovative product required an average of 38 months, 4700 worker-hours and $836 000.
Article
Demand is a major potential source of innovation, yet the critical role of demand as a key driver of innovation has still to be recognised in government policy. This article discusses public procurement as one of the key elements of a demand-oriented innovation policy. The paper starts by signaling the new significance of public procurement for innovation policy strategies at the EU level and in a range of European countries. It then defines the concept of public procurement and embeds this concept within a taxonomy of innovation policies. The rationales and justifications of public procurement policies to spur innovation are discussed, followed by a consideration of the challenges and potential pitfalls as well as appropriate institutional arrangements and strategies, including some recent empirical examples of good practice. It concludes by confronting the public procurement approach with two of the most common objections to it and by considering future prospects.
Article
This study investigates some factors that need to be considered in the management of innovation implementation within construction project organization. The main objective was to find explanatory variables that significantly affect the benefits of an innovation to project team members and the project as a whole. As part of a larger study on innovation in Singapore's construction industry, a survey was conducted and data from 58 projects that had adopted innovations in Singapore were collected via mailed questionnaire. The questionnaire requested respondents to provide specific data about their projects, the type of innovations adopted and the enablers and barriers to innovation. Four main categories of factors were found to significantly affect the extent to which an innovation will benefit project team members and the project. These are: the level of interest of project team members; working environment; formation of task groups; and the capabilities of the people involved in the innovation. Research questions relating to modelling innovation success are posed for further study.
Article
As construction activity has a significant impact on the environment it is vital to consider how to improve the environmental performance of organizations in the construction industry. The ISO 14000 series of standards on environmental management provides construction enterprises with the tool to address in a structured manner the adverse impacts of their operations and to attain sustainable construction. In this study, a survey was conducted to ascertain the perceptions of construction enterprises in Singapore on the impact of the implementation of ISO 14000 on their operations. Major problems were identified, and recommendations are made for the future development of environmental management systems (EMS) in the Singapore construction industry.
Article
Based on empirical studies of the role of key individuals in the processes of ten successful innovations in the US construction industry, this paper makes three principal arguments. First, effective leadership is essential for technological innovation - in particular in construction. Second, technological competence is an utmost prerequisite for effective leadership for construction innovation - regardless of the size of the firm. In other words, an entrepreneurial role as a technical champion in a small firm does not change even as the firm grows. Lastly, the role of technical champion can be delegated only with slack resources and adequate power. This paper also highlights conclusions and practical applications to increase technological innovation in design and construction firms.
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