Determinants of innovation in construction firms in the Atacama Region, Chile

Abstract

Innovation is a process that is due to strategic planning in the company and it plays an important role when competing with other producers. Considering that innovation has not been rigorously investigated in SMEs (small med-size enterprises) in the construction sector at the regional level in Chile, except in the capital of the country. The objective of this paper was to evaluate the main factors that favour and disadvantage the installation of innovation in the construction sector in the Atacama region, Chile, statistically evaluating the relationship between innovation factors. A non-probabilistic sample composed of 12 SMEs companies was considered, applying a questionnaire with open and closed questions oriented. The results indicate that all of the experts surveyed believe that innovation is a very relevant strategic tool to improve the competitiveness of construction companies in the region. In addition, it was detected that the feasible areas to innovate are: materials, products, equipment and machines. On the other hand, the areas of processes and organizational structure were indicated as relevant for the installation of innovation in the company. The factors that favour innovation are: a good economic environment, professionals prepared to innovate and availability of economic resources. Moreover, the factors that hinder the installation of innovation are: the lack of an innovation culture, the rigid organizational structure, the scarcity of resources and the low management capacity.