University of Oulu

Hänninen, K., Juntunen, J. and Haapasalo, H. (2023), "Identifying latent classes to successful AEC innovation through a survey of Finnish construction companies", Construction Innovation, Vol. ahead-of-print No. ahead-of-print.

Identifying latent classes to successful AEC innovation through a survey of Finnish construction companies

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Author: Hänninen, Kai1; Juntunen, Jouni2; Haapasalo, Harri3
Organizations: 1Kerttu Saalasti Institute, University of Oulu, Oulu, Finland
2Oulu Business School, University of Oulu, Oulu, Finland
3Industrial Engineering and Management, University of Oulu, Oulu, Finland
Format: article
Version: published version
Access: open
Online Access: PDF Full Text (PDF, 1.1 MB)
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Language: English
Published: Emerald, 2023
Publish Date: 2023-05-12


Purpose: The purpose of this study is to describe latent classes explaining the innovation logic in the Finnish construction companies. Innovativeness is a driver of competitive performance and vital to the long-term success of any organisation and company.

Design/methodology/approach: Using finite mixture structural equation modelling (FMSEM), the authors have classified innovation logic into latent classes. The method analyses and recognises classes for companies that have similar logic in innovation activities based on the collected data.

Findings: Through FMSEM analysis, the authors have identified three latent classes that explain the innovation logic in the Finnish construction companies — LC1: the internal innovators; LC2: the non-innovation-oriented introverts; and LC3: the innovation-oriented extroverts. These three latent classes clearly capture the perceptions within the industry as well as the different characteristics and variables.

Research limitations/implications: The presented latent classes explain innovation logic but is limited to analysing Finnish companies. Also, the research is quantitative by nature and does not increase the understanding in the same manner as qualitative research might capture on more specific aspects.

Practical implications: This paper presents starting points for construction industry companies to intensify innovation activities. It may also indicate more fundamental changes for the structure of construction industry organisations, especially by enabling innovation friendly culture.

Originality/value: This study describes innovation logic in Finnish construction companies through three models (LC1–LC3) by using quantitative data analysed with the FMSEM method. The fundamental innovation challenges in the Finnish construction companies are clarified via the identified latent classes.

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Series: Construction innovation
ISSN: 1471-4175
ISSN-E: 1477-0857
ISSN-L: 1471-4175
DOI: 10.1108/CI-01-2023-0002
Type of Publication: A1 Journal article – refereed
Field of Science: 512 Business and management
212 Civil and construction engineering
Funding: The research was a part of an Energizing Urban Ecosystems (EUE) program and was funded by Build Environment Innovations RYM SHOK project.
Copyright information: © Kai Hänninen, Jouni Juntunen and Harri Haapasalo. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at