Measuring innovation in New Zealand construction organisations : developing a measurement tool for medium and large companies : a thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy in Civil Engineering, School of Built Environment, Massey University, New Zealand

Abstract

Innovation is increasingly recognised as a crucial driver of productivity, competitiveness, and sustainability in the construction industry. Despite its importance, the construction industry has been lagging behind other sectors in this field and is characterised as a weak innovator due to many factors such as its project-based nature, fragmentation, and resistance to change. In New Zealand, these challenges are further exacerbated due to the absence of a comprehensive, context-specific tool for measuring innovation in medium and large construction organisations. Addressing this gap, the aim of this research was to develop a comprehensive diagnostic tool to effectively measure innovation within medium and large construction organisations in New Zealand.

A sequential exploratory mixed-methods design guided this research, comprising three interconnected stages. Stage one involved a comprehensive literature review, a rigorous inductive content analysis, and an expert-informed thematic categorisation, leading to the identification of innovation indicators structured under five categories of Innovation Potential: Workforce Skills and Human Resources Management, Organisational Structure, Business Strategy, Technology, and External Influences. This tool was further complemented by 36 questions for assessing the Business Innovation Score. Stage two applied the tool in two case study organisations, enabling empirical testing, refinement, and comparative analysis of innovation potential and performance. Stage three validated the tool through interviews with construction industry experts, further refining the tool, confirming its relevance, completeness, and applicability.

The research findings demonstrate that the developed tool is theoretically grounded, practically usable, and capable of providing diagnostic insights into organisational innovation capabilities. The tool highlights strengths and weaknesses across its categories, facilitates benchmarking, and offers a foundation for targeted strategies to improve innovation. By connecting a theoretical framework with empirical validation, this research contributes a robust innovation measurement tool tailored to the unique characteristics of the New Zealand construction industry. The developed tool has implications for both academic advancement and industry practice. This research provides a platform for policymakers, industry leaders, and organisations to systematically measure, monitor, and improve innovation within the New Zealand construction industry.