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Pichura, A C (2004) Phenomenon of innovation and its influence on changing project delivery models in construction in Japan, Unpublished PhD Thesis, Graduate School of Engineering, Department of Architecture, University of Tokyo.
- Type: Thesis
- Keywords: competition; construction sector; construction firms; globalisation; industrialisation; innovation; marketing; project delivery; Germany; Japan; UK; organisational structure; phenomenology; market; construction cost; subcontractor; supplier
- ISBN/ISSN:
- URL: http://gazo.dl.itc.u-tokyo.ac.jp/gakui/cgi-bin/gazo.cgi?no=119684
- Abstract:
This dissertation is motivated by the desire to understand a phenomenon - innovation - and its implications for the construction industry. It spans a bow between the phenomenological developments of the concept over the theoretical discussions to its particular implications in the construction sector. Lastly, an empirical application level was chosen that reflects a most recent development in the Japanese construction industry. The general business environment is under change. Globalisation has fully exerted influence on developed countries as well as on lesser developed countries. Individuals, firms and industries have taken actions to react on the changing environment. The shifting of development, production, accounting and marketing activities due to technological progress to almost any place in the world became possible. Highly developed high wage countries in many industries have suffered the loss of many basic production or administration activities to lower wage countries. That poses the question what are the remaining core firms in the highly developed countries still good for if production can be done cheaper and of equal quality in low wage countries? The answer for many industries is innovation. Innovation is not a new word. However, it gained new and greater relevance due to the before mentioned developments. Years ago we were talking about improvement and progress. These concepts were the answers to the general problems of their time. They did not become redundant but our cognitive insights increased. Progress is a concept that exerts a high degree of positivism and dogmatism. Innovation is a minor paradigm shift in our reaction to the developments and understanding of changes in the world. From the Enlightenment, which put science and development on the basis of reason, empiricism, universalism and progress over many stages to industrialisation, which allowed almost unlimited development, these concepts got a shock by postmodernism and the understanding of Thomas Kuhn that science also produces a lot of waste. The absolutism of progress, which also delivered the nuclear bomb, is relativised by innovation which puts invention into relation with the markets’ needs and perceptiveness. This dissertation develops the phenomenology of innovation why it is such an important issue for our time. It systemises and puts the existing literature and research into perspective as a comprehensive overview is missing. Its particular implications for construction are developed. The Japanese system of construction innovation is discussed and put into contrast with Germany and the U.K. Lastly, the relationship with the most recent interest in changing project delivery models in Japan is empirically scrutinised. Japan’s construction industry is dominated by Design-award-Build and Design & Build delivery systems with lump-sum fixed prices. Alternative models are gaining attractiveness to reduce costs - the share of construction costs in relation to land prices for a building project has increased and thus created cost pressure on construction firms - and increase transparency. Various alternative models exist and are imported and investigated by Japanese construction firms. The outcome of this dissertation is to most comprehensively develop a systemised ’map of innovation’, a decision matrix for determining construction innovation parameters, and to identify which might be the influences of changing delivery models on innovation and technological improvement in construction in Japan. The answer to the latter issue is ambiguous, as the typical delivery model with its closely managed supply-chain entails many opportunities for innovation but, at the same time, limits innovation based on direct competition. It is recommended to slightly loosen the closed organisational structure of major general contractors, subcontractors and material suppliers for more direct competition by retaining the advantages of the supply-chain management. New delivery models can play an important part in this development to foster innovation.