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Information asymmetries and technological innovation in large engineering construction projects
Author(s) -
Lampel Joseph,
Miller Roger,
Floricel Serghei
Publication year - 1996
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/j.1467-9310.1996.tb00971.x
Subject(s) - agency (philosophy) , business , industrial organization , control (management) , test (biology) , prime (order theory) , information asymmetry , marketing , knowledge management , economics , management , computer science , paleontology , philosophy , mathematics , epistemology , combinatorics , biology , finance
Research on technological innovation shows that information asymmetries between suppliers and buyers constitute a major barrier to the successful introduction of new products. Most of this research, however, puts the burden of overcoming these asymmetries on producers of new products. In the case of large engineering construction projects innovation is often the result of joint problem solving by owners, prime contractors, consultants, and equipment suppliers. In this paper we examine the relationship between innovativeness of large engineering construction projects and internal owner capabilities, degree of control over project, and dependence on external organizations, We use data on power plant construction projects to test hypotheses derived from agency and organization theories of innovation. Our results indicate that organization theories of innovation are on the whole better predictors of the impact on innovativeness of owner's capabilities and relationship to external organizations.