ANALYSIS AND FINDINGS

Regression analysis was performed on the data collected from the Analyses on the relationship of external networking and innovation surveys to analyze the relationships between two or more variables

were separately conducted based on the two defined dimensions of with dependent variable (multiple regressions), in this case, the

external networking and three dimensions of innovation. The r 2 value relationships between external networking and innovation.

and the Beta coefficient as well as its significance were analyzed and examined on all of the dimensions relationships as indicated in Table

The underlying assumptions of the linear regression, which are

linearity, normality and homoscedasticity were tested in continuous data used for the regression analysis. Linearity was assessed

The results show that external networking with project players is by analyzing the scatterplots of the variables, whilst histogram

insignificant influencing innovation. However, external networking and skewness data were used to detect the normality of the

with government and academic institutions positively significant in variables. Consistent variance of the error term is associated with

influencing all three dimensions of innovation. homoscedasticity. Homoscedasticity assumes that the dependent variable exhibits equal levels of variance across the range of predictor variables [35]. The scatter plot of the variables on the x-axis and the variable’s residual on the y-axis is analyzed to determine if a relationship is homoscedastic. The scatter plot that displays a specific pattern indicates homoscedasticity were met.

Table 4: External Networking On Innovation

Innovative Design Solution

Innovative Project Practice

Advanced Technology Utilization

Std. Error of

Sig. F

Durbin-

Std. Error of

Sig. F

Durbin-

Std. Error of Sig. F Durbin-

the Estimate Change

Watson

the Estimate Change

Watson

the Estimate Change Watson

B Std. Error Sig. (Constant)

B Std. Error Sig.

0.052 0.870 External Networking with Project

External Networking with

0.053 0.003 Government & Academic Institutions

External networking is posited by many scholars [13, 18, 22, 25, 28] to have a positive influence on the innovation of an organization. The findings of this research partially support this notion which indicates that networking with government bodies and academic institution is positively significant in determining innovation in construction industry. However it is not supported in the case of networking with project players.

The positive outcome on the influence of external networking with government bodies and academic institutions on innovation can be explained by the fact that construction industry is not a research intensive industry [12, 13]. As compared to a research intensive industry like pharmaceutical, where research is conducted within the organization, construction organizations are less likely to perform their research within their own organization. In PWD for example, formal research and development initiatives depends highly on the collaboration with higher education institution as well as with research agencies such as SIRIM and IKRAM. This trend is supported by the study undertook by Kamar [36] that denotes most construction related R&D activities in the Malaysia were performed outside of the construction organizations and mostly by the academic institutions. Furthermore, it is also posited that most companies did not conduct their own R&D but would rather purchase and adopt technology they require.

The outcome of this also study implied that the current progress of innovation in construction organizations in Malaysia is more due to government initiatives rather than the effort by the construction organization. In Malaysia, such efforts in promoting innovation can

be observed by the consistent calls by government bodies such as CIDB. A good example would be the CIDB’s request for the industry players to enhance mechanization through utilization of advanced technology in reducing high dependence on low skill foreign workers. In addition, two of the strategic thrusts in CIMP aim to promote innovation by calling the construction industry players to innovate for new construction methods by investing in research and development efforts and leveraging on the information and communication technology in automating design and construction process.

Moreover, the current widespread adoption of the innovative Industrialized Building System (IBS) in most construction project implementation in Malaysia is not due to industry push but rather by the guidelines produced by CIDB and enforcement in PWD’s projects that requires 70% IBS components in all of government project [2]. The report by CIDB [2] that illustrates 67% of IBS projects were government funded further justifies this outcome.

On the other hand, although various scholars supported the positive relationship between external networking with project players and innovation, the outcome of this research indicates otherwise as it is revealed that external networking with project players is insignificant

in influencing innovation. This may be contributed by the fragmented nature of the construction industry which requires the participation of the various organizations in a project team for an innovation initiative to be implemented in a construction project. While an innovation requires a certain period time to develop and diffuse, the networking established among project players is project-based and short term which may not sufficient for a full collective adoption of an innovation. In addition, according to Diffusion of Innovation Theory [37], the time required for innovation adoption is determined by the innovation decision process and the innovativeness of the members of the social system. The insignificance outcome of this study may also explains that the players in the construction industry lacks of the first three adopter categories described by Rogers namely the innovators, early adopters and early majority. They determines how early for innovation to diffuse for adoption decision. In this context, the communication channel established from external networking with project players during project implementation is insufficient for innovation adoption. These reasoning provide the possible explanations on the insignificant influence of external networking with project players on project performance.

ANALYSIS AND FINDINGS