ABSTRACT
Quantity Surveying firms in contemporary times have evolved into structurally standard organisations where there is the understanding of organisational culture as an essential management philosophy that drives innovation. This study sought to analyse specifically, the relationship between organisational culture and innovation in quantity surveying firms. Using a quantitative research approach, this research examined the relationship between organisational culture and innovation in Quantity Surveying firms. Eighty one (81) quantity surveyors from Twenty Seven (27) firms completed the questionnaires used for this research. Mean score was used to identify the organisational culture and innovation types dominant in quantity surveying firms. Spearman's rank correlation was used to evaluate the relationship between organisational culture and innovation types. The study revealed that quantity surveying firms exhibited multiple types of innovation with “service innovation” being most dominant. The study further revealed that quantity surveying firms exhibited multiple types of organisational culture with “supportiveness culture” being most dominant. “Social responsibility culture”, “emphasis on rewards culture”, “stability culture” and “competitive culture” have the highest number of relationships with innovation types in quantity surveying firms. “Supportiveness culture”, “innovation culture” and “performance orientation culture” have the least association with innovation types. The study concluded that organisational culture has a significant relationship with innovation in quantity surveying firms. The findings from this study implied that there were need for the management of quantity surveying firms to embrace organisational culture as a strategy for improving innovation practice and vice versa.
CHAPTER ONE
INTRODUCTION
1.1 Background to the study
Studies have shown that an innovative and efficient construction industry contributes to a stable global economy. However, the construction industry is notorious, conservative and slow to adapt to change (Olatunji, 2009) and quantity surveying practice as an integral of the construction industry is not free from these shortcomings.
The outputs of construction industry have significant impacts on standard and quality of living (Olatunji, 2007), to achieve these significant impacts, strategic improvements have to be welcomed in the construction industry by means of innovation and improvement in organisational culture.
Yesil and Kaya (2012) opined that organisations today, face a lot of challenges which include the requirement to innovate (Page et al., 2002). This requirement puts pressure on organisations to look for new ways of being creative and innovative. The need for continuous innovation in organisations, has become an important question that every organisation seeks to answer to survive in today‟s competitive business world. One of the most important factors of improvement that organisations are paying attention to is organisational culture which help to create and support an environment in which innovation can flourish (Yesil and Kaya, 2012).
Innovation is important in maintaining a competitive advantage as it redefines the way that profits can be made (Lee, 2004). Innovation is defined as a new or significantly improved product (good or service), process (production or delivery method), marketing method (packaging, promotion, or pricing) or managerial method (internal practice) (Manley and McFallan, 2008). Innovation is further defined as the application of knowledge to create additional value and wealth (Page et al., 2002).
Yeşil and Kaya (2012) opined that organisational culture is an important construct that affects both individual and organisational related process and outcomes. There seems to be no agreed upon definition of organisational culture in literature (Abu- Jarad et al., 2005). Page et al., (2004) defined Organisational culture as “the shared basic assumptions that an organisation learns while coping with the environment and solving problems of external adaptation and internal integration that are taught to new members as the correct way to solve those problems”. According to Schein (2004), organisational culture is “a pattern of basic assumptions that a group has invented, discovered or developed in learning to cope with its problems of external adaptation and internal integration, and that have worked well enough to be considered valid, and therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems”. Service firms like any other public entity have a culture that may be preventing the status quo from changing, yet change of routine is required if organisations are to innovate and adapt to a dynamic environment
Organisational and environmental factors are known to have influence on innovation capabilities of an organisation. Researches in the past have dealt with the relationship between organisational culture and certain outcomes such as organisational culture and innovation, organisational culture and firm's performance in service sector, organisational culture and grouped service firms etc (Naranjo-Valencia et al., 2011; Ozigbo, 2012; Yesi and Kaya, 2012; Okibo and Shikanda, 2013; Olanikpekun, 2013). These researches however, were not specific on the relationship between organisational culture and innovation in specific service firms.
1.2 STATEMENT OF RESEARCH PROBLEM
The increasing demand for value-added services and prompt completion of construction projects at reduced cost by clients, complexity of modern construction infrastructure (Page et al., 2004) and globalization according to Smith (2004) as cited by Musa, (2010) among others, are factors necessitating innovation in the operations and service delivery of quantity surveying practicing firms. Researches in the past revealed that continuous improvement in an organisation is associated with innovation Thus the firms are seeking for strategies and tools to improve the quality of their services. Every profession evolves in response to the ever-increasing changes in the global business environment (Frie et al., 2009). In order to remain relevant, globally competitive and successful, Quantity Surveyors need to constantly scan their business landscape to discern new directions and to adapt to imminent changes in their professional practice (Fort and Jeune 2009). Innovation is seen as the tool for improving the quality of services of the firms in Nigeria (Aderemi et al., 2009). It is generally considered to be one of the key drivers of corporate success (Cardozo et al., 1993) as cited by Frambach and Schillewaert (1999). Martins and Terblanche (2003) assert that Organisational culture is a critical factor in the success of any organisation with particular emphasis on the relationship between organisational culture, innovation and creativity. This indicates that organisational culture could affect the way innovation and creativity solutions are encouraged.
Organisational and environmental factors are known to have influence on innovation capabilities of an organisation. Researches in the past have studied the relationship between organisational culture and certain outcomes such as organisational culture and innovation, organisational culture and firm's performance in service sector, organisational culture and grouped service firms etc (Ozigbo, 2013; Yesil and Kaya 2012; Olanikpekun, 2012). These researches however, were not specific on the relationship between organisational culture and innovation in specific service firms such as quantity surveying firms. This study therefore, seeks to analyse specifically, the relationship between organisational culture and innovation in Nigerian quantity surveying firms.
1.3 RESEARCH QUESTIONS
- What are the organisational culture and innovation types present in service firms?
- What are the types of organisational culture present in quantity surveying firms in Nigeria?
- What are the types of innovation practices present in quantity surveying firms in Nigeria?
- Is there any relationship between organisational culture and innovation in Nigerian quantity surveying firm
1.4 AIM AND OBJECTIVE
1.4.1 AIM
The aim of this research is to assess the relationship between organisational culture and innovation in Nigerian quantity surveying firms with a view to determine the relationship that exist between them.
1.4.2. OBJECTIVES
- To identify the organisational culture and innovation types in service organisations
- To assess the types of organisational culture in quantity surveying firms in Nigeria
- To assess the types of innovation in quantity surveying firms in Nigeria and
- To determine the relationship between organisational culture and innovation in Nigerian quantity surveying firms.
1.5 SIGNIFICANCE OF THE STUDY
In an economic environment that is constantly changing, the need and ability to adapt or innovate becomes increasingly important (Frie and Mbachu, 2009). The skepticism surrounding the sustainability of the quantity surveying profession is fuelled by factors such as the dissatisfaction of clients with the traditional bouquet of services and the demand for more comprehensive and diverse services (Page et al., 2002).
This research will prompt Quantity Surveying practitioners to reflect on their current organisational cultures and desired future states. It will also help in obtaining potential strategies for competitive repositioning and re-engineering of the profession‟s status to maximize the opportunities and minimize the imminent threats. Therefore, an empirical research assessing the relationship between organisational culture and innovation would be a great contribution to both organisational culture and innovation literature. The fact that this research is carried out in a developing country context is expected to bring new insights into better understanding of the concept of organisational culture and innovation. Innovation is seen to become even more important in future as the country faces new constraints to growth from population ageing and quest to rely on the application of knowledge to compete in the global economy. It is therefore essential that Quantity Surveyors fully understand the process of innovation in Quantity surveying practice and organisational culture in quantity surveying firms.
1.6 SCOPE
The broad area of this research work is on innovation types and organisational culture types in Nigerian quantity surveying firms. It is further centered on the relationship between organisational culture and innovation in Nigerian quantity surveying firms. Registered quantity surveying firms with the Quantity Surveyors Registration Board of Nigeria (QSRBN) in Abuja as at 2014 were considered for the purpose of this research.
This is because, a large number of quantity surveying firms are located within Abuja metropolis and a lot of construction works are being undertaken in Abuja.
1.7 LIMITATIONS
This study is limited by the fact that respondents were the ones assessing themselves and as such the responses could result in overlapping opinions by the respondents, this may result in some level of biasness on the part of the respondents‟ the researcher therefore, assessed the respondents based on three managerial levels per firm (Principal, Senior and Junior quantity Surveyor) so as to reduce the level of biasness and overlapping opinions.
