Abstract
Neglecting to engage key stakeholders early on is one of the common points of failure in projects. Problems such reworks, disputes, cost overruns, poor communication, and failure of the supply chain are just some of the common problems that arise from stakeholder conflict during the construction phase. This is due to the fact that different project stakeholders have differing goals and priorities, and it is therefore unlikely that all stakeholder expectations could be met. The early involvement of stakeholders could identify any potential problems early-on and continue providing input throughout the construction phase. Therefore, there is a need to engage the stakeholder in the project as early as possible to determine the need and capture stakeholder inputs in such projects. Innovative procurement tends to increase opportunity for innovation in construction productivity through the integration of the design and construction functions. Higher levels of innovation arise when a more innovative procurement method is chosen. Alliance procurement is one of the innovative procurement methods, introducing organisational innovation through early stakeholder engagement in the project. No major studies have so far been completed that examine in depth how early stakeholder engagement influences the innovation process. This paper therefore aims to evaluate the impact of early stakeholder engagement and how it influences the innovation process in construction projects. The potential of innovation through various procurement methods will be discussed. Then, the relationship to early stakeholder engagement is examined. The findings suggest that promoting early stakeholder engagement, regardless of the procurement system, is vital to avoid rework and unnecessary cost, enhance quality, overcome disputes throughout the construction process and overcome the problem of low productivity. Furthermore, long term procurement relationships, especially in collaborative procurement, need early stakeholder engagement as an effective way of developing trust among stakeholders, thus facilitating innovation.
6. Future Research
This preliminary study is part of the conceptual framework of a doctoral research project to further explore the significance of innovation at the process, product and organisational level with respect to different procurement methods. For the next step of the research, a quantitative and qualitative approach will be conducted through questionnaire and interview, respectively. The questionnaire will be designed to support the proposed innovation framework and categorise the indicator (project, process, product or organisation) and procurement system.
