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By Akintola Akintoye, Jack Goulding, Girma Zawdie

This booklet units out the leading edge practices which have been brought from different industries and indicates how the development has learnt from those.

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1997). 4), which was first proposed by Freeman (1987) and later developed by Lundvall (1992). According to the NIS, innovation emerges from evolving systems of participants in the generation and application of knowledge. indd 26 2/9/2012 12:03:03 AM Construction Innovation through Change Management 27 its institutional and cultural context. The ‘innovation system’ concept thus provides a framework for exploring patterns of partnerships, revealing and managing the institutional context that governs relationships and processes, understanding research and innovation as a social process of learning, thinking about capacity development in a systems sense and linking the wide range of actors in a network with the view to promoting innovation (Hall, 2002).

However, the coupling model does not provide information of external resources of knowledge derived from the business network and supply chain, which is particularly important, in view of the experience of large as well as small innovative firms engaging in intensive external networking activity (Rothwell, 1994). Firms would engage in external networking activities to enhance their organisational learning and knowledge sharing capability, as these are crucial factors underpinning innovation at the level of the firm.

Radical innovations)’ (Van de Ven, 1986). , 1997; Line, 1999; Sardi and Lees, 2001), the strategic role of management in determining the scope for innovation at the level of the firm cannot be over-emphasised. For the culture of innovation to take root at the level of the firm, it is important for management to redesign and develop or reengineer (Hammer 1990; Hammer and Champy, 2003) organisational structures and processes, so that rigid hierarchical systems of control and outdated organisational structures are superseded by systems of operation and organisational structures with built-in flexibility.

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