A Study of Technological Change in the Construction Industry Through Understanding the Importance of Innovation, Risk and Stakeholder Alignment in Construction Lendin

Technological innovation is regarded as the key to competiveness. The age-old construction industry is changing and has become an emerging field for research and innovation. Recent developments have seen an increase in the number of initiatives aimed at improving the standard of the built environment in both product and process improvements. Over the past decade, construction engineering and management (CEM) professionals have seen numerous innovations in production and management methods, classifications of codes and performance standards, and emerging technological advances in products and process techniques. In the most general sense, these innovations can be classified as technological change.;Technological change theorists suggest a multi-disciplinary impact of innovation not isolated to the point of introduction. Diffusion of innovation theories suggest many barriers exist to technological change. These phenomena have led CEM researchers to view significant internal and external barriers to innovation and technological change in construction. This research examines one external factor, the construction financing industry, and searches for influence on the diffusion of innovation and technological change in construction.;CEM researchers have referred to the construction lending industry as "gatekeepers" to the diffusion of innovations in CEM. The construction lending industry is primarily concerned with project risk and the probability of earning a rate of return. Lenders utilize investment portfolio theory to minimize risk based on regulatory restrictions, a priori investment risk tolerance levels, and quasi-quantitative data measured against industry benchmarks. Despite the analytics, subject matter experts must make a subjective final lend/no lend decision. Subjectivity and bias within the expert decision makers may account for the barriers of innovation in construction.;The goal of the research is to examine the effects of innovation on construction lending, adding further insights to the theory that construction lenders act as gatekeepers to the diffusion of technological innovation. Variables are examined to determine if differences exists across demographics and types of innovations. This research contributes to understanding the residual effects of technological change and the diffusion of innovation in the construction industry. Furthermore, the research aids CEM researchers, organizational leaders and strategists in the adoption and implementation of innovative technologies in construction.