Supplier Based Innovation : Collaborative methods to promote innovative products in the construction industry

Abstract: Initial observation shows that there is a knowledge gap between the demand of the end customers and the supply of material and products provided by suppliers. The culprit manifests in the nature of the construction industry, seen as conservative and not prone to innovation combined with lackluster incentives between the contractor and supplier through framework agreements. Collaboration is not developed, presented through the fact that each actor relies on each other to gain information on sought after products and material. The research aims to present how supplier-based innovation can promote the development of new products and materials that are of value to the end customer. This is done by conducting a case study within a general contractor and interviewing suppliers, purchasers, and end customers to understand how collaboration could be a first step to create an ecosystem in which new products and materials are developed. The results show that collaborative product development would be suitable in certain instances, such as with a general contractor with an own developing unit in collaboration with a preferred supplier or framework supplier.