Thursday 23 January 2014

Kia Ora!

The X-mas (summer) break was good. We visited almost all the beaches at the Hauraki Gulf and had some nice BBQs (in NZ: barbies) with newfound friends and colleagues. Our two kids had a three-day sailing course in small sailing boats called Optimists (in NZ: opties)Our English is improving and every day we hear Kiwi slang with a pronunciation far removed from the Queen’s English we learnt at school.
My research proposal for the PhD workshop at IPSERA in South Africa got accepted. (Hurray!) At the same time I need to further define the exact research subject and the related research design. Luckily I have a bunch of bright people around me (in the Netherlands and here in New Zealand) to help me with that. And Google Scholar can provide me with loads and loads of literature on all aspects of construction management, purchasing, disruptive innovations and sustainability. Sometimes I feel like a kid lost in a candy store. My subject circles around:

The role of purchasing in small construction firms when they want to introduce discontinuous waste-reducing (green) innovations. This focuses on the New Zealand situation but I will use international material for a better assessment.
Some say that the building industry is conservative and resists innovations. That however depends how you look at it (Sexton, 2004, 2006). In most countries the building industry is project-based and works in a complex setting. On a daily basis one sees incremental and day-to-day improvements on construction building sites. My current research proposal states that the construction industry could need discontinuous (or disruptive, or radical) innovations for drastic improvements. (For innovation info, please see the book of Christensen, 1997). I will focus on innovations with a technical nature and that can e.g. be protected by patents. These innovations relatively uncommon but when successful will make a big impact.

These discontinuous innovations I want to investigate complement the more incremental improvements. Definitions differ somewhat, but I see these as new or existent technologies not earlier applied in construction and new to the market or customers. Often the success lies not in the technologies per-se. Rather the success lies in new business models: how companies use these innovations in the market. I hope my research helps to give a better understanding on successfully introducing (absorbing / adopting) green technology. After all we all want good quality houses and buildings which are reasonably priced and can be built with little impact on our environment. Currently however building and living in houses has a huge negative impact on the environment as we use heaps of water and energy and material, and produce too much waste.
Disruptive innovations often come from small firms (Baumol, 2004; Manley 2008; Hardie 2011; Lambert 2010) from outside the industry or at the beginning of supply chains. These innovations must be purchased and adopted into such chains. For instance: innovative building materials that would work in a country without any earth quakes will not be immediately suitable in New Zealand. Just the other week there was a major (6.2) earth quake in Wellington but most buildings have only minor damage. The biggest thing that came down was the Hobbit eagle at display on Wellington airport.

When a small construction firm buys a new technology or product it has to be clever and purposeful and convince several stakeholders before this technology is successfully adopted by his customers, partners and building codes. I think that purchasing has a big role in this. At least that is the case in bigger companies (see e.g. research of Picaud and Johson). Smaller companies purchase their products and services differently (see e.g. research of Ramsey, Morrissey, or Paik). We know from e.g. Manley (2006) that manufacturers do sell technical innovations into construction supply chains. We know from Sexton that small construction firms focus on incremental improvements. Currently I do not know adequately how these small construction firms would successfully purchase and implement disruptive technologies. Let alone green technology. In the next few weeks I hope to find out more about this. Stay tuned on this blog!

BTW: Want to live in a grand mansion on the Dutch countryside? Just follow this link.
BTW: for some fresh family pictures, please visit our Staaltjesdownunder blog.
BTW: Please pose your questions and write down your remarks on this blog!