Investigating the influence of procurement management in construction projects on the innovation level and the overall project performance in developing countries

Abstract

Innovation in the construction industry, specifically in developing countries, has not yet met the majority of scholars’ expectations. The body of knowledge about innovation in these countries does not address the influence of innovative procurement management towards a successful construction project; nor demonstrate the role of exploratory projects in enhancing innovation in an organization’s procurement management plan. Consequently, this study examines the relationships between a construction project’s level of innovation, collaborative procurement management, and project performance. The primary data were collected from 221 construction industry experts using a quantitative method. The findings show that a project’s level of innovation, especially with exploratory projects, has a strong influence on project performance. Also, the role of a procurement management plan can be identified as a moderator between the Level of Innovation and Project Performance. The positive effects of collaborative procurement management can be noticed by the improvement on the project’s innovation process. Moreover, this study sets a benchmark for a series of studies related to innovation in developing countries’ construction industry.