An Innovation Value Chain in Project Based Companies: A Study of Indonesian Contractors

Harijanto Setiawan,Ferianto Raharjo,Ay Lie Han

doi:10.9744/ced.22.2.98-104

Harijanto Setiawan, Ferianto Raharjo + Show 1 more

Open Access

https://doi.org/10.9744/ced.22.2.98-104

Copy DOI

Abstract

Innovation is one of the key success factors of contractors to achieve sustainable business. However, studies about innovation cannot be generalized to all business sectors. Therefore, special study about innovation that focuses on contractors in Indonesia is needed. The study is aimed to explore the process of innovation development in contractors, based on innovation value chain (IVC) approach. The qualitative analysis on the data that is collected from in depth interview with top managers of big contractors in Indonesia is carried out. This study found that innovations are generated mainly by project teams because they are involved directly in the project activities. The next phase is to test the idea of innovation in the selected projects in order to assess whether the innovation works well or not. Finally, the selected innovations will be set as a company standard and will be implemented in the subsequent projects.

Highlights

Innovation has been defined in various ways
After the coding process was carried out and the findings were reviewed several times, based on the Innovation Value Chain (IVC) framework, the particular IVC framework that was most appropriate for the contractors was developed
Contractors are project-based firms (PBFs) that run their businesses based on projects; many of the innovations are derived from and utilized for the project’s activities

Summary

Introduction

According to Frenz and Oughton [1] in the Report for the Department of Trade and Industry and the Office of the Deputy Prime Minister of the United Kingdom, innovation can be defined as ‘new ideas exploited for commercial purposes’. In this definition new ideas have been described in many forms, more than just new products. Innovation covers new processes, new markets, new organizational techniques, as well as new sources of supply Later on, this definition has been adopted by Wilson [2] in Working Paper 19 of GLA Economics. Innovative activity must be developmental, commercial, and financial activity that is carried out by the company [3]

Objectives

Methods

Results

Conclusion