The Emergence of the Contractor’s Innovation Capability at Project Level: An Agent-Based Modeling Approach

Abstract

Contractors play a crucial role in ensuring efficient innovation within construction projects but limited research has focused on the innovation capability of contractors. This study utilizes a multi-method approach, including case studies, surveys, and interviews to collect data for analysis. Based on this, a conceptual model is proposed and a simulation mode which utilizes agent-based modeling (ABM) is constructed. ABM is the microscopic bottom-up approach which can describe and follow the agents and interactions. This study proposes a novel conceptual model to examine the emergence of contractor innovation capability at the project level, from a knowledge flow perspective. It fills the research gap regarding innovation capability in temporary cross-organizational projects. Additionally, an ABM simulation model is developed considering project and participant characteristics, providing insights into the formation rule and development mechanisms of contractors’ innovation capability at the project level. The conclusions are as follows: (1) The demand for innovation drives the innovative behavior of different entities within the project. (2) Knowledge availability in public domains and other entities’ knowledge creation capability provide critical support for contractor innovation. (3) Contractors’ capability to absorb and integrate knowledge serves as the foundation for achieving innovation. (4) When contractors possess strong capabilities, effective synergy among organizations facilitates the generation of innovative outcomes.