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Critical Success Factors for Technological Innovation in Construction Projects Hui Liu e-construction group University of Maryland,

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Presentation on theme: "Critical Success Factors for Technological Innovation in Construction Projects Hui Liu e-construction group University of Maryland,"— Presentation transcript:

1 Critical Success Factors for Technological Innovation in Construction Projects Hui Liu e-construction group University of Maryland, College Park Central South University

2 1.Background Outline 2. Identification of CSFs for Technological Innovation 3.Integrated Structuring Modeling 4.Obtaining interrelationship between CSFs 5. Hierarchical structuring of CSFs 6. Degree of Relationship between CSFs 7.Conclusion and future research

3 Fragmentation; temporarily project team; adversarial relations; low trust and opportunism; etc. Background low productivity; low efficiency. Lack of cooperation. low innovation performance. Construction Projects

4 Background Construction Project Business Project Innovation Project

5 Background Researches about innovation projects Individual firms Interfirm cooperation relationships and networks Technological innovation networks

6 Identification of CSFs Project nameTimeBudgetTarget Shuohuang Railway11/ /2004$2.5 billion To construct the second large corridor of western coal eastward transportation in China combining with Shenshuo Railway. The short-time goal of the annual transportation capacity is million ton, whilst the long-term goal is 100 million ton per year. Mainly achievements 14 months ahead of schedule cost saved by $0.44 billion. 53 items of new technologies, new processes, new materials and new machines were adopted during the construction of the project. 2 patents for utility models 3 software copyrights have been authorized 7 patents for invention 9 patents for utility models have been accepted.

7 Identification of CSFs

8 Integrated Structuring Modeling This research used a five-stage ISM method as follows: (1) define the problem to be solved; (2) select the elements consist of the problem as well as describe the logic relationship between the elements and the problem; (3) establish adjacency matrix and reachability matrix of all the factors; (4) hierarchically structure all the elements and construct the structural model; (5) analyze all the elements according to the structural model.

9 Obtaining interrelationship between CSFs Forming Adjacency Matrix(A) of CSFs Contextual relationship-“leads to” A is used to describe the logical relationship between factors in the system, namely showing the reachability between factors through one unit length. An initial 21*21 matrix of the identified CSFs for paired comparison was developed and sent to the 10 experts for their opinions. Factors (i/j)

10 Obtaining interrelationship between CSFs Forming Reachability Matrix(R) of CSFs Reachability Matrix (R) which indicates both the direct and indirect effects of a factor on all other factors is generated. Boolean algebraic operation Factors (i/j) Driver power Dependence power

11 Hierarchical structuring of CSFs Partitioning the Reachability Matrix R obtained above was then partitioned by deriving the reachability set (R(F i )) and antecedent set (A(F i )) to obtain ISM hierarchy For any factor, if R(F i ) is a complete subset of A(F i ), that factor(s) will be taken out and assigned a particular level

12 Hierarchical structuring of CSFs Factor (Fi)Reachability set: R(Fi)Antecedent set: A(Fi)Intersection R(Fi)∩A(Fi)Level 11~9,11,12,13,17,181~9,14,15,16,18~211~9,18 21~9,11,12,13,17,181~9,14,15,16,18~211~9,18 31~9,11,12,13,17,181~9,14,15,16,18~211~9,18 41~9,11,12,13,17,181~9,14,15,16,18~211~9,18 51~9,11,12,13,17,181~9,14,15,16,18~211~9,18 61~9,11,12,13,17,181~9,14,15,16,18~211~9,18 71~9,11,12,13,17,181~9,14,15,16,18~211~9,18 81~9,11,12,13,17,181~9,14,15,16,18~211~9,18 91~9,11,12,13,17,181~9,14,15,16,18~211~9, ,12,1310,14,15,16,19,20, ~9,11,14,15,16,18~2111 Ⅰ 1212,131~9,12~16,18~2112,13 Ⅰ 1312,131~10,12~16,18~2112,13 Ⅰ 141~18,2114, ~13,15~18,2114,15,16,2015,16 161~13,15~18,2114,15,16,2015, ~9,14~2117 Ⅰ 181~9,11,12,13,17,181~9,14,15,16,18~211~9,18 191~13,17,18, ~18,20, ~13,17,18,2114,15,16,20,2121 First Iteration of Reachability Matrix

13 Hierarchical structuring of CSFs Second Iteration of Reachability Matrix Factor (Fi)Reachability set: R(Fi)Antecedent set: A(Fi)Intersection R(Fi)∩A(Fi)Level 11~9,181~9,14,15,16,18~211~9,18 Ⅱ 2 1~9,14,15,16,18~211~9,18 Ⅱ 3 1~9,14,15,16,18~211~9,18 Ⅱ 4 1~9,14,15,16,18~211~9,18 Ⅱ 5 1~9,14,15,16,18~211~9,18 Ⅱ 6 1~9,14,15,16,18~211~9,18 Ⅱ 7 1~9,14,15,16,18~211~9,18 Ⅱ 8 1~9,14,15,16,18~211~9,18 Ⅱ 9 1~9,14,15,16,18~211~9,18 Ⅱ 10 10,14,15,16,19,20,2110 Ⅱ 141~10,14,15,16,18,2114, ~10,15,16,18,2114,15,16,2015,16 161~10,15,16,18,2114,15,16,2015,16 181~9,181~9,14,15,16,18~211~9,18 Ⅱ 191~10,18, ~10,14,15,16, ~10,18,2114,15,16,20,2121

14 Hierarchical structuring of CSFs Factors1~9 Establishment of trust-based partnership Establishment of contract-based partnership F1.professionalism of partners F2.high credibility of partners F3.harmonious long-term working relationships F4.partners have rich experience in cooperation and innovation F5.mutual trust F6.open internal and external communication and cooperation F7.equitable allocation of risks F8.appropriate allocation of interests F9.clear definition of responsibilities

15 Mapping Relationship between Factors

16 Degree of Relationship between CSFs Factors (i/j) Driver power Dependence power Reachability Matrix

17 Degree of Relationship between CSFs F10.systematic methodologies to carefully monitor the innovation process

18 F11.establishment and communication of conflict resolving strategy F12.clear identification of user need F13.responsiveness to internal and external changes F17.formulating strategies to transfer knowledge of the innovation project to the business project Degree of Relationship between CSFs

19 F1-9.contract- and trust- based partnership F18.presence of integration champions

20 Degree of Relationship between CSFs F14.owner’s involvement and leadership F15. top management commitment F16.strategic importance of the innovation project F19.building a strict incentive system F20.external support F21.organizational culture for effective and on- going learning and innovation

21 Conclusion and future research Conclusions  Identification of 21 CSFs for technological innovation in construction projects  Establishing a hierarchical order for prioritization and consequent action for the decision-making of technological innovation in construction projects  The vital CSFs in innovation projects of construction project: ◦ external support ◦ owner’s involvement and leadership ◦ top management commitment ◦ strategic importance of the innovation project

22 Conclusion and future research Future research

23 Thank you! Questions?


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