ASSESSING THE EFFECTIVENESS OF INNOVATION LEADERSHIP STYLE IN ENHANCING THE PERFORMANCE OF CONSTRUCTION COMPANIES IN CAMEROON

CHAPTER ONE

INTRODUCTION

Background of the Study

Construction companies significantly contributes to the social and economic progress of countries globally. The industry facilitates social advancement by creating employment opportunities for a substantial workforce. The infrastructure it offers is essential for the effective operation of society (Ogunbayo et al., 2020). Furthermore, the construction industry has faced criticism due to its very low levels of productivity and quality when compared to other industries. One of the primary causes for this condition is the industry's inadequate embrace of innovation (Winch, 2018). Innovation refers to the process of converting an idea into a marketable product or service, or it can also be the result of enhancing an already existing product or service (Benmansour and Hogg, 2022). Similarly, it can be defined as a concept, method, or procedure, whether new or old, that is utilized in a unique manner to enhance the value of a system, process, or product in the production of goods or services (Ozorhon et al., 2018). However, seeking progress in all aspects of construction operations is crucial as it significantly adds to the Gross Domestic Product (GDP) of both developed and developing countries. While construction industry has the potential to enhance its scale, market dominance, and profitability, with innovation being the crucial factor in achieving this. Damanpour and Schneider (2020) emphasized the crucial role of innovation in attaining a competitive edge and ensuring the survival of enterprises in the industry. Furthermore,Blayse and Manley (2019) found that there is a positive correlation between the levels of innovation in the construction industry and its contribution to economic growth. In other words, as innovation increases, so does the industry's impact on economic growth. Nevertheless, engineering and construction enterprises within the industry must engage in innovation to secure victories and enhance the productivity and quality of their projects. However, the construction industry has faced mounting pressure to enhance its creativity and deliver more value to clients. Several industrial characteristics appear to hinder development and complicate innovation (Haseeb et al., 2011; Rafique & Mehmood, 2022). 

Therefore, in this particular type of organization, innovation is generally seen to have a lower degree of performance compared to other industries and is often classified as an expensive investment. Client objectives for project allocation often prioritize achieving the lowest costs, while organizations also aim to accomplish distinctive projects. According to Rafique et al. (2017), they must independently alter their procedures and resources. The adoption of new ideas and technologies is essential in a market that is open and interconnected, as the existing lack of innovation in the construction industry, when compared to other sectors, weakens the industry's ability to compete. Thus, discovering methods to enhance innovation in the construction sector is consistently captivating. Consequently, construction companies are confronted with the task of refining their proficiency in executing effective innovations in order to better meet consumer demands and enhance their competitive capabilities. There are several empirical studies in the literature that examine the relationship between firm innovation and performance. Therefore, a survey will be conducted in order to assess the effectiveness of innovation leadership style in enhancing the performance of construction companies in Cameroon.

1.2 Statement of the Problem

The construction sector plays a crucial role in driving economic growth. The performance of the sector has substantial ramifications for the whole economy. However, the industry has frequently faced criticism for providing items and services that are of subpar quality and do not match clients' expectations regarding price reliability and guaranteed delivery (Lu and Sexton, 2018). According to Benmansour and Hogg (2019), certain factors have been identified from  as hindrances to innovation in the construction industry. The reasons for the lack of innovation in the industry include a limited understanding of its benefits, the perception that the industry is already successful without innovation, the high cost and perceived risk of innovation, a focus on short-term goals, limited resources and capacity, government regulations, a lack of skilled facilitation for brainstorming, a lack of focus and support, an abundance of ideas but a lack of implementation in the market, cultural issues, political factors, constantly changing priorities, a lack of shared vision and collaboration, a lack of spare time to develop new ideas, a lack of urgency, a stagnant mindset, the absence of a clear process, a resistance to adopting emerging technologies, an unwillingness to acknowledge and learn from the past, a tendency to avoid risk, a lack of effective leadership, organizational structures that hinder creativity. Hence, it is in the light of these that the study seeks to assess the effectiveness of innovation leadership style in enhancing the performance of construction companies in Cameroon.

 1.3  Objectives of the Study

The main purpose of this study is to assess the effectiveness of innovation leadership style in enhancing the performance of construction companies in Cameroon. Specifically, the study will;

Assess the impact of innovation leadership on the performance and effectiveness of construction companies in Cameroon.

Determine whether there is a relationship between innovation leadership style and employee productivity in construction companies in Cameroon.

Investigate the challenges faced by construction companies in implementing effective innovation leadership practices in Cameroon.

1.4  Research Questions

The following questions have been prepared for the study:

How does innovation leadership impact the performance and effectiveness of construction companies in Cameroon?

Is there a relationship between innovation leadership style and employee productivity in construction companies in Cameroon?

What are the challenges faced by construction companies in Cameroon when implementing effective innovation leadership practices?

1.5 Research Hypotheses

H0: Innovation leadership style does not significantly enhance the performance of construction companies in Cameroon.

Ha: Innovation leadership style significantly enhances the performance of construction companies in Cameroon.

1.6 Significance of the Study

The research finding will help policymakers design and implement policies that support innovation and leadership development in the construction sector. This can contribute to economic growth and development in Cameroon.Furthermore, investors looking to invest in construction companies in Cameroon will use the findings of this research to assess the potential for growth and success based on the leadership styles implemented in these companies. Likewise, financial institutions will also use this information to evaluate the creditworthiness and risk associated with financing construction projects. Moreover, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the effectiveness of innovation leadership style in enhancing the performance of construction companies in Cameroon.

1.6 Scope of the study   

The scope of this study is boarded on the effectiveness of innovation leadership style in enhancing the performance of construction companies in Cameroon. Empirically, this study will assess the impact of innovation leadership on the performance and effectiveness of construction companies, determine whether there is a relationship between innovation leadership style and employee productivity in construction companies and investigate the challenges faced by construction companies in implementing effective innovation leadership practices.

Geographically, the study will be delimited to some selected construction companies in Baffoussam, Cameroon.

1.7 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

 1.9 Definition of Terms

Leadership: refers to the ability to guide, inspire, and influence others towards achieving a common goal.

Innovation leadership: involves leading and inspiring others to develop and implement new ideas, products, or processes.

Performance: refers to the execution and outcomes of tasks, activities, or functions in an organization.