Innovation in Private Infrastructure Development Effects of the Selection Environment and Modularity
This study investigates how the selection environment and modularity affect innovation in private infrastructure development. Our findings stem from an in-depth empirical study of the extent ten process innovations were implemented in an airport expansion programme. Our findings suggest that developer and customers can each occasionally champion or resist innovations. An innovation succeeds contingent upon the capability of the stakeholder groups to develop collectively a plan to finance and implement the innovation, which reconciles subjective individual assessments. Innovations can be particularly hard to adopt when they require financing from different budgets, or when the developer’s investment pays off only if customers behave in a specified way in the future. We also find that the degrees of novelty and modularity neither represent sufficient or necessary conditions enabling or hindering innovation. Novelty, however, makes the innovation champion’s job harder because it leads to perceptions of downside risk and regulatory changes, whereas modularity helps the champion operationalise ways that moderate resistance to innovate.
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| Length: | |
| Date of creation: | 2007 |
| Handle: | RePEc:aal:abbswp:07-23 |
| Contact details of provider: | Web page: http://www.druid.dk/
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References listed on IDEAS
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- Andrew Davies, 2004. "Moving base into high-value integrated solutions: a value stream approach," Industrial and Corporate Change, Oxford University Press, vol. 13(5), pages 727-756, October.
- Rod Coombs & Mark Harvey & Bruce S. Tether, 2003. "Analysing distributed processes of provision and innovation," Industrial and Corporate Change, Oxford University Press, vol. 12(6), pages 1125-1155, December.
- Ulrich, Karl, 1995. "The role of product architecture in the manufacturing firm," Research Policy, Elsevier, vol. 24(3), pages 419-440, May.
- Sendil K. Ethiraj & Daniel Levinthal, 2004. "Modularity and Innovation in Complex Systems," Management Science, INFORMS, vol. 50(2), pages 159-173, February.
- Nelson, Richard R., 2003.
"On the uneven evolution of human know-how,"
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Elsevier, vol. 32(6), pages 909-922, June.
- Richard R. Nelson, 2003. "On the Uneven Evolution of Human Know-How," LEM Papers Series 2003/25, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Watson, Jim, 2004. "Selection environments, flexibility and the success of the gas turbine," Research Policy, Elsevier, vol. 33(8), pages 1065-1080, October. Full references (including those not matched with items on IDEAS)
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