THE IMPACT OF PROCESS INNOVATİON AND PARTNERSHİP ON PROJECT PRODUCTİVİTY

When contractors start a new project, they need to understand the impact of process innovation and partnership on productivity. Do they have a positive or negative interaction effect? Further, does process innovation has direct impact or need partnership as intervening variable to strengthen the impact on rework and productivity? This paper develops hypothesis regarding the effectivity of process innovation on partnership, and productivity in high-rise building construction project. The hypotheses are tested on empirical data set that tracks competency, partnership, innovation, rework and productivity of 71 high-rise building project across 30 weeks covering project construction to termination phase. The result demonstrates that Process Innovation has a strong and significant correlation to Partnership, and Productivity. Surprisingly, the analysis reveals a weak and non-significant interaction effect between Partnership to Productivity, further Partnership has no mediating effect on the relationship between process innovation to productivity. with the value of VAF is 13% with t-value 1.227. Companies can gain more productivity directly from process innovation than through Partnership.