The influence of partnering and procurement on subcontractor involvement and innovation

Abstract

Purpose The aim of this paper is to investigate how a client's cooperative procurement procedures influence subcontractor involvement, value creation, and innovation in the construction of complex facilities. Design/methodology/approach Empirical data were collected through interviews, surveys and participation in workshops during a longitudinal action research case study. The case project was located in Sweden and concerned the construction of plant facilities for manufacturing of pharmaceutical products. Findings The case study findings reveal that the client's procurement procedures affect the level of subcontractor involvement and integration, but that this does not necessarily result in increased subcontractor value creation and innovation in the construction process. Research limitations/implications Since the empirical results are based on data collected from only one case project, the possibilities for generalisations are limited. Practical implications Clients' procurement procedures heavily affect subcontractor involvement, but in order to increase subcontractor contributions to innovation and value creation the actors should adopt a long‐term perspective and actively work to establish an innovation‐friendly climate. Originality/value This paper focuses on the often‐neglected importance of subcontractors and their contributions to innovation and value creation.