Absorptive Capacity as a Basis for Construction Innovation: from a Capabilities to a Routines Perspective

Construction has been described as a sector with weak levels of Absorptive Capacity. At a time when the performance of the UK construction sector, in terms of levels of exports and future financial sustainability, is being widely discussed by policy makers, are the actual levels of Absorptive Capacity a ‘real and present’ risk to future sector performance? High levels of Absorptive Capacity have been positively linked with innovation success and organisational performance, including financial growth and increased productivity levels. The dynamic nature of Absorptive Capacity, rooted in the routines of individuals or organisations, ultimately strengthen an organisations capability to discover and benefit from new knowledge and novel technologies. For a UK construction sector (which is regularly impacted by turbulent external environments), ensuring that at individual, firm and sector level, dynamic capabilities are not allowed to ‘stagnate’, is of uppermost importance. Since, stagnation can result in low levels of Absorptive Capacity (Pentland et al., 2012). Therefore, rather than examining Absorptive Capacity from a relatively static capabilities viewpoint and by drawing on the contemporary scholarship of Absorptive Capacity Routines, are there opportunities to evaluate the impact of Absorptive Capacity levels across the diverse and complex sector? And beyond the life of project?