INNOVATION CAPABILITY: A KEY MECHANISM FOR ACHIEVING COMPETITIVE ADVANTAGE IN CONSTRUCTION BUSINESS

Abstract

This strategic article synthesizes evidence from the 2020–2025 literature to clarify “Innovation Capability” (IC) among Thai construction contractors, distinguish it from “Innovation Performance” (IPf), and explicate the mechanisms by which IC translates into sustainable competitive advantage. Guided by the Resource-/Knowledge-Based View and Dynamic Capabilities (sensing–seizing–transforming), the study adopts a systematic–scoping review, screening sources on quality and relevance and using thematic analysis to construct a logic chain that links capabilities, transmission mechanisms, and measurable outcomes.

The synthesis shows that IC is not a collection of isolated tools but an “architecture of capabilities” that can be replicated and scaled across projects. Six interlinked pillars emerge: (1) leadership and culture, (2) human competence and absorptive capacity, (3) digital enablement—BIM/CDE/AI, (4) supply-chain collaboration and IPD/partnering contracts, (5) innovation portfolio and governance, and (6) ESG/regulatory alignment. Core mechanisms that convert IC into IPf include a single source of truth via CDE and openBIM/IFC, coordination through BCF, 4D/5D gates before critical work, contractual levers that accelerate decisions (e.g., RFI SLA, data-sharing), a learning cycle from pilot to scale, and a shared KPI dictionary with project↔enterprise dashboards.

The measurable outcomes appear across time and cost (tighter schedule variance, lower % cost overrun and change-order exposure), quality and safety (reduced rework, NCR, and LTIR), customer experience (faster approvals, higher CSAT/NPS), and finance (higher bid–hit ratio and improved margin stability). When such results are achieved consistently and supported by innovation portfolio governance, they consolidate into sustainable competitive advantage.