Engineering, Construction and Architectural Management

Purpose – The UK Government's housing agenda, coupled with the current market conditions, has provided the housebuilding industry with a challenge to build more new homes while improving business efficiency to survive. Although innovation has been claimed as the key to meeting the challenge, the level of its usage has been reported low. This paper aims to reveal an insight into the success, inertia and failure of innovations and improve innovation management for housebuilding firms.

Design/methodology/approach – The paper reports on a two-year case study of a large UK housebuilding company. It investigates the lifecycle of two product innovations, i.e. photovoltaic and air source heat pumps, and two process innovations, i.e. development efficiency plan and glossary of terms.

Findings – Five key stages of managing innovation are identified which represent the thematic consistency among the innovation processes, i.e. the creation of ideas, development of innovation, utilisation, review and improvement or abandonment. The organisational construct of the company for managing innovation is complicated and appeared difficult to manipulate, which constitutes a cultural and administrative obstacle. Whilst the adoption of the innovations from the market seems more straightforward than those created and developed in the company, the success or failure of innovation is driven by the combination of external and internal contextual issues. Strategies are developed which should improve the effectiveness of managing innovation in housebuilding and contribute to relevant future debate.

Originality/value – The paper provides insight into managing innovation in UK housebuilding.