Abstract
The construction industry is a key industry in any economy. Due to its specific characteristics, the industry is of substantial importance to the development of other sectors. Competition is highly intense, and the industry itself is susceptible to changes in market circumstances that force the entities operating in it to continuously take actions to enhance their competitiveness by, among other things, introducing innovative solutions. The objective of the present study is to evaluate the level of innovativeness of enterprises in the small and medium-sized (SME) sector in the Polish construction industry and to identify the factors that influence this level of innovativeness, which relates to the location of the business and managers’ awareness of the significance of innovation in shaping a firm’s competitiveness. Qualitative research was conducted on a sample of 608 companies. The obtained results demonstrate that construction companies from the SME sector in Poland are characterized by a level of innovativeness that is similar to that found in other enterprises, which is a consequence of the relatively high awareness of the significance of innovation to obtaining a competitive position among the managers of these companies. An analysis of the innovative activities of these companies by location shows, in turn, that entities operating in regions that are less economically developed and less attractive in terms of investment are more innovative.
Highlights
In recent years, a notable development of entrepreneurship has been observed in many countries
Studies have shown that the level of innovativeness of the SME sector in the Polish construction industry is satisfactory, i.e., comparable to the whole population of enterprises operating in Poland
This state of affairs finds confirmation in a high degree of awareness of the significance of innovativeness among managers/ entrepreneurs in the construction industry regarding the development of a competitive market position
Summary
A notable development of entrepreneurship has been observed in many countries. The SME sector is the main motors behind a country growth, in job creation, and for innovation (Romero-Martinez et al 2010). It is a milestone on the road toward economic progress, and makes a huge contribution towards the quality and future of a sector, economy or even a country’s welfare (Mendez-Picazo et al 2012; Ribeiro Soriano and Huarng 2013). According to Porter (1985), innovation increases the competitiveness of countries, particular sectors of the economy, or enterprises It contributes to maintaining profitability, gaining a competitive advantage, and the long-run functioning of a company (Khazanchi et al 2007). Some researchers claim that innovation may be of even greater importance for the SME sector than for large companies (Fritz 1989)
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