Abstract:
Project-based organizations differ from „conventional‟ organizations due to their engagement
in unique, novel and transient work and delivering custom-made outputs to clients. While innovation
with respect to „conventional‟ organizations has been widely researched, there is limited research
conducted on project-based organizations, especially at the project level. Construction represents a
major project-based industry responsible for creating physical assets beneficial for humankind. As the
organisers of construction projects, clients have a significant role to play to drive innovation in
construction projects. Innovation at the project level is not researched much up to now and the paper
fills this knowledge gap. Using scant research literature available on project level innovation and
combining with other relevant innovation research, the paper examines the performance of innovation
at the project level of construction organizations. An extensive literature review conducted on the
subject has enabled identifying fundamental mechanisms that can be initiated by construction clients to
foster innovation in construction projects at the execution level. These mechanisms are idea
harnessing, relationship enhancement, incentivisation, and project team fitness. The purpose of this
paper is to introduce and discuss these fundamental mechanisms and explain how they facilitate
innovation. The study is aimed to supplement the relatively small body of knowledge on project level
innovation in construction projects.
