Abstract

Innovation diffusion process is an important component for construction companies to remain competitive in today's changing business environment. The aim of this study is to examine how innovations in the Australian construction industry can be understood through innovation diffusion theories and empirical works. To achieve this goal, the author reviewed theoretical frameworks, and then analysed empirical works to shed light on the innovation diffusion in practice. The review found that effective innovation diffusion has played an important role in providing organizations with competitive advantages. From a socio-psychological perspective, leadership and team climate have had a direct effect on organizational culture, which indirectly impacts on innovation diffusion outcomes and business performance. Emphasizing the drivers and obstacles of innovation diffusion is also necessary to effectively develop a conceptual framework of innovation diffusion at project level which begins with knowledge and idea generation, and progresses to implementation and confirmation.