THE UNIVERSITY OF LEEDS

School of Civil Engineering

CIVE5170M ICME/EPM DISSERTATION

Submitted in accordance with the requirement for the degree of:

Master of Science (Engineering)

In
International Construction Management and Engineering

INBOUND OPEN INNOVATION IN INDONESIA PRIVATE CONSTRUCTION COMPANIES

By

ANGELIA DHARMADY

September 2019
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MODULE BRIEF
Assignment title: Dissertation
Assignment type: Major Coursework Item
Contribution to Module Mark 100%
Set Date 30th October 2018
Submission Date: 2nd September 2019
Submission Place:
1. Student Support Office or Coursework box next to
the Student Support Office
2. Minerva

Feedback Date: 31 October 2019

Type of Feedback: Numerical mark + comments on mark sheet
Student Number

Module Learning outcomes

On successful completion of the dissertation, the student will be able, at threshold level,
to:
1. Demonstrate independent management skills
2. Demonstrate a knowledge gap in a chosen research area
3. Develop research methods and research instruments for data collection.
4. Collect and analyse data to elicit new knowledge.
5. Produce a written research proposal
6. Produce a written research report.

Module Task
Each student is required to select a research project in consultation with a research
project supervisor, design and undertake research activities within the chosen topic and
prepare a dissertation in accordance with the guidance provided on Minerva and by the
supervisor. Each student is expected to submit two bound copies of the dissertation and
an identical electronic copy via Minerva (please go to Assessment/Dissertation/Submit
Electronic Copy of Dissertation). Please note that:
1. The Minerva submission is the primary submission – late penalty will apply if it is
submitted late.
2. The two hard copies are a secondary submission – late penalty will not apply but
assessment may not be completed on time if it is late or missing. This may lead to
withholding of the mark, the consequence of which may be that the qualification is not
awarded or is awarded late.

Reading List
1. Saunders, M; Lewis, P; Thornhill, A. 2015. Research Methods for Business Students.
Seventh Edition, Pearsons
2. Fellows, R and Liu, A. 2008. Research methods for construction. Oxford: Wiley -
Blackwell.
3. Greenfield. T (Ed.). 2002. Research methods for postgraduates. London: Arnold.
4. Kumar, R. 2005. Research methodology: A step-by-step guide for beginners. London:
Sage.
5. Maylor, H, Blackmon, K and Huemann, M. 2017. Researching business and
management, 2nd edition. Basingstoke: Palgrave Macmillan.
6. Pearce, R A. 2000. Starting research: An introduction to academic research and
dissertation writing. London: Continuum.
7. Potter, S (Ed.). 2006. Doing postgraduate research, 2nd ed. London: Sage.
Dissertation Assessment Criteria
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Criterion Sub-criterion What the assessors will be looking for

(Weight) (weight)
Gap in research Coverage of Use of comprehensive primary, secondary and tertiary
/ knowledge literature literature to make/support arguments and tell a ‘story’
(25%) (50%)
Research problem Critical analysis of the literature to derive genuine gap(s)
(25%) in knowledge/research problem(s)/research question(s)
Aim(s) Accurate research aim(s) whose achievement has the
(10%) potential to address the gap(s) in knowledge/research
problem(s)/research question(s) completely
Objective(s) Accurate research objectives that individually and
(15%) collectively constitute high level activities required to
achieve the research aim(s) completely
Research Match to research Appropriate identification and use of a research
Design problem approach to match each research problem in terms of
(20%) (25%) research quality, type of research question and the
resource available to undertake the research
Data Collection Appropriate identification of data collection
methods methods(including instrumentation) commensurate with
(25%) the choice of each research approach and the research
problem
Data Analysis Appropriate Identification of Data Analysis Method
Methods (25 %) commensurate with each research approach and type of
data collected
Research Ethics Completed ethical review form as well as accurate and
(25%) comprehensive implementation of the plan devised to
deal with ethical features of the research
Data analysis Data collection Accurate implementation of the chosen data collection
(20%) (25%) process resulting in meaningful data set(s)
Data analysis Accurate use of appropriate data analysis techniques to
(25%) interrogate the data collected
Interpretation of Accurate and justified interpretation of the data analysis
results results
(25%)
Discussion of Accurate consideration of the results and appropriate
results literature to address the gap(s) in knowledge/research
(25%) problem(s)/research question(s) completely
Contribution to Conclusions Accurate reflection on what was to be done, how it was
knowledge (25%) done, what was found and how the findings impact on
/research the body of knowledge
problem Limitations Accurate identification of things, beyond the control of
(15%) (25%) the researcher, that limit research validity and statement
of appropriate precautions for those who might wish to
use or build on the research
Recommendations Accurate suggestions for action by specified
(25%) stakeholders that follow from all the research findings
Contribution to Accurate statement of how the body of knowledge has
knowledge changed as a consequence of the research done
(25%)
Writing Grammar and Correct use of words, sentences, punctuation to
(10%) spelling communicate the desired message
(25%)
Presentation All components and the document as a whole prepared
(25%) with layout, format, binding, etc. to enhance readability
Structure and style All components such as chapters, sections, subsections,
(25%) paragraphs, Tables, Figures, etc. put together in a logical
way in academic writing style
References Accurate inclusion of all relevant citations in the body the
(25%) document and list of references using a standard system
of referencing
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Engagement & Attendance at Attendance at supervision meetings throughout the

professionalism supervision academic year.
(10%) meetings
(25%)
Preparedness for Following up all issues discussed at previous
supervision supervision meetings and having clear agendas for
meetings supervision meetings.
(25%)
Conscientiousness Attention to detail in all research activities and steady
in research progress of the research activities throughout the
activities academic year – demonstrating maturity as a
(25%) researcher.
Autonomy as a Taking responsibility for research work – demonstrating
researcher independence as a researcher.
(25%)

Marking scale (%)

0 – 49 50 – 55 56 – 64 65 - 69 70 - 79 > 80
Fail Satisfactory Good Very Good Excellent Outstanding
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Acknowledgement

I would like to thank my dissertation supervisor, Dr Giorgio Locatelli for giving me

continuous support whenever I ran into trouble with my research. He consistently
forced me to work the best for this dissertation and kept steering me in the right
direction whenever he thought I needed it. He has been so patient and full of
understanding whenever I was explaining something unclearly. Another
acknowledgement is given toward Dr Kris Moodley, as the second marker for this
dissertation. All recommendations given in the proposal has been helpful for this
dissertation quality improvement.
I want to also thank all the classmates, staffs, and lecturers in the International
Construction Management and Engineering Programme, School of Civil Engineering,
Faculty of Engineering, and the University of Leeds who have supported me implicitly
and explicitly and create an environment which makes me keep the spirit of finishing
this dissertation. This acknowledgement is also dedicated to all other supportive friends
and family members, which gives me encouragement for this dissertation.
Lastly, I am also willing to thank all respondents who have answered every
question honestly and voluntarily, and some other respondents who have promoted the
other people that are possible to be interviewed.
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Abstract

Inbound open innovation is the innovation practice involving the collaboration with the
external stakeholder. While it is considered as crucial, only few Indonesia private
construction companies perform them. This study addresses inbound open innovation
practices in Indonesia private construction companies. Literature review and semi-
structured interview were conducted with a total of 13 respondents from 10 companies.

As a result, companies agree that the barriers of inbound open innovation are
unnecessity, conservative thinking, not having the R&D, and lack of preparation and
resources. This result indicates that the knowledge of inbound open innovation has not
grown in the Indonesia construction sector.

Keywords: innovation, inbound open innovation, Indonesia, construction industry,

private company (100 words).
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Table of Content

Acknowledgement ................................................................................................... iv
Abstract.................................................................................................................... v
Table of Content ...................................................................................................... vi
List of Tables............................................................................................................ ix
List of Figures ........................................................................................................... x
Introduction ............................................................................................. 1
Introduction ........................................................................................................ 1
Background ......................................................................................................... 1
Gap of Knowledge/Research Problem ............................................................... 3
Research Aim ...................................................................................................... 4
Research Objective ............................................................................................. 4
Research Scope................................................................................................... 5
Outline of the Dissertation ................................................................................. 5
Literature Review ..................................................................................... 6
Introduction ........................................................................................................ 6
Innovation........................................................................................................... 6
Open Innovation ................................................................................................. 7
Inbound Open Innovation .................................................................................. 9
Inbound Open Innovation in construction companies .................................... 12
Barriers of Inbound Open Innovation in construction companies ................... 13
2.6.1. Financial Issues .................................................................................. 13
2.6.2. Social Skills ......................................................................................... 14
2.6.3. Self-Confidence .................................................................................. 14
2.6.4. Government Involvement.................................................................. 14
Research Methodology ........................................................................... 16
Introduction ...................................................................................................... 16
Research Design ............................................................................................... 16
Research Method ............................................................................................. 17
Data Collection Methods .................................................................................. 19
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3.4.1. Sample Selection ................................................................................ 19

3.4.2. Data Collection ................................................................................... 19
Data Analysis Methods ..................................................................................... 21
Research Ethics ................................................................................................. 23
Data Analysis .......................................................................................... 24
Introduction ...................................................................................................... 24
Data Overview .................................................................................................. 24
4.2.1. Interview Question Validation ........................................................... 24
4.2.2. Sample size ........................................................................................ 26
4.2.3. Overview of Primary Data.................................................................. 27
Data Analysis Preparation ................................................................................ 28
4.3.1. Preparation of the Data ..................................................................... 28
4.3.2. Preliminary Categorisation ................................................................ 30
Data Analysis Execution.................................................................................... 30
4.4.1. Coding ................................................................................................ 30
4.4.2. Word Frequency Analysis .................................................................. 36
Discussion ............................................................................................... 42
Introduction ...................................................................................................... 42
Open Innovation in the Construction Industry ................................................ 42
Open Innovation in Indonesia .......................................................................... 45
Innovation in Indonesia Private Construction Company ................................. 46
5.4.1. Barriers of Innovation ........................................................................ 46
5.4.2. Benefits of Innovation ....................................................................... 49
5.4.3. Driving Factors of Innovation ............................................................ 50
Barriers of Inbound Open Innovation in Indonesia Private Construction
Company...................................................................................................................... 51
5.5.1. Unnecessity ........................................................................................ 54
5.5.2. Conservative Thinking........................................................................ 56
5.5.3. Not having the R&D ........................................................................... 57
5.5.4. Lack of Preparation and Resources ................................................... 58
Conclusion .............................................................................................. 61
Introduction ...................................................................................................... 61
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Conclusions ....................................................................................................... 61
Limitations ........................................................................................................ 63
Contribution to Knowledge .............................................................................. 63
Recommendation for applying Inbound Open Innovation .............................. 64
6.5.1. Toward Indonesia Project Management Association ........................ 64
6.5.2. Toward Indonesia Government ......................................................... 65
6.5.3. Toward Indonesia Universities .......................................................... 66
Recommendations for Further Research ......................................................... 67
References ............................................................................................................. 68
Appendices ............................................................................................................. 77
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List of Tables

Table 4.1 Interview Question Themes and its Meaning ................................................. 25

Table 4.2 Company’s Profile ........................................................................................... 27
Table 4.3 Interviewee’s Profile ....................................................................................... 27
Table 4.4 Companies which has conducted innovation ................................................. 29
Table 4.5 Axial Coding Categories for Closed Innovation ............................................... 32
Table 4.6 Axial Coding Categories for Open Innovation ................................................. 33
Table 4.7 Selective Coding Categories for Closed Innovation ........................................ 34
Table 4.8 Selective Coding Categories for Open Innovation .......................................... 35
Table 4.9 The result of Phase 1 of Word Frequency Analysis: Closed Innovation ......... 37
Table 4.10 The result of Phase 1 of Word Frequency Analysis: Open Innovation ......... 38
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List of Figures

Figure 1.1 Open Innovation Publication ........................................................................... 2

Figure 2.1 Conceptual Model of Open Innovation ........................................................... 8
Figure 2.2 Model of Organisational Culture ................................................................... 11
Figure 3.1 Research Design. ............................................................................................ 17
Figure 4.1 Interviewee Model ......................................................................................... 26
Figure 4.2 Number of Construction Company in Indonesia ........................................... 29
Figure 4.3 Preliminary Categorisation of Innovation ...................................................... 30
Figure 4.4 Word Cloud for Closed Innovation ................................................................ 31
Figure 4.5 Word Cloud for Open Innovation .................................................................. 31
Figure 4.6 The result of Phase 2 of Word Frequency Analysis: Closed Innovation ........ 40
Figure 4.7 The result of Phase 2 of Word Frequency Analysis: Open Innovation .......... 41
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Introduction

Introduction
This chapter presents the background of the study, which is emphasised on why inbound
open innovation is crucial to be discussed, covering the reason why private construction
company and Indonesia are preferred as a case study. Aim, objective, and scope of this
dissertation are also identified in this chapter. The last sub-chapter includes how this
dissertation will be structured.

Background
The combination of technological advancement and the broader perspective of human
knowledge creates a competitive atmosphere between companies to prevent
termination, which agreed by many that innovation is the most compelling approach. As
the number of competitors is increasing, companies are forced to keep satisfying the
social aspiration by generating new ideas and combine them to their existing knowledge
(Caryannis and Meissner, 2017; Chesbrough, 2003), while the aspiration itself has a
linear growth with the technology and knowledge. However, surprisingly, the traditional
innovation is no longer relevant as it is finite by the employee’s knowledge and
proficiency and the company’s resources. Hartono (2018) finds that these internal
barriers to innovation compel the company to adopt modern innovation, which is known
as open innovation. Open innovation can be defined as the innovation practices, which
is not only relying solely on the company’s R&D division but also external knowledge,
and open innovation itself is estimated could improve the company’s performance
(Rauter et al., 2018; Huizingh, 2011; Chiaroni et al., 2011; Dahlander and Gann, 2010;
Dodgson, 2006; Chesbrough, 2003). External knowledge comes from stakeholder, which
is defined by PMI (2013, p. 394) as “individuals, groups, or organisations who may affect,
be affected by, or perceive themselves to be affected by a decision, activity, or outcome
of a project,” that does not have a direct contract to the project, or external stakeholder.
The practice of open innovation had emerged since the 1980s when people were
aware of the existence of external stakeholder’s idea and resources which could
encourage the company to maximise its performance (Spithoven et al., 2010). The
elaboration and details of its notion now have substantial growth since Chesbrough
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firstly researched in 2003 (Chesbrough, 2003), which is justified through the number of
studies which trend is increasing within the year. The statistic of the surge of open
innovation literature could be seen in Figure 1.1. Hence, the practice of Open Innovation
is now rapidly expanding to many types of industries, which this dissertation
encompasses construction industry. Many companies; small, medium, and large
companies, keep their sustainability through innovating continuously beyond their
boundaries. Through this open innovation, the companies are expected to be able to
drive the improvement of the project performance, particularly in the context of the
iron triangle.

Open Innovation Publications

600

500
NUMBER OF PUBLICATIONS

400

300

200

100

0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
YEAR

Scopus Science Direct

Figure 1.1 Open Innovation Publication

Data from Scopus (Keyword: “open innovation” in article title, abstract, and keywords) and Science
Direct (Keyword: “open innovation” in title, abstract, and keywords); Accessed 25 June 2019

Inbound open innovation is introduced as a branch of open innovation

(Chesbrough, 2003). Chiaroni et al. (2011, p. 35) demonstrate inbound open innovation
as “the practice of leveraging the discoveries of others and entails the opening up to,
and establishment of relationships with, external organisations with the purpose to
access their technical and scientific competences for improving the company’s
innovation performance.” Shortly, it interprets as utilising external resources or
knowledge and combine them with the in-house R&D. As the prior literature has
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distinguished that inbound open innovation affecting the project performance positively
(Garriga et al., 2013; Wang et al., 2015; Laursen and Salter, 2006; Chesbrough, 2003), it
is then addressed as the focal point of this dissertation.

Gap of Knowledge/Research Problem

The approach of Inbound Open Innovation is just getting the scholars’ and practitioners’
attention since Chesbrough (2003) firstly introduce it. Through preceding studies, it is
disclosed that there are still many knowledge gaps which are indicated by the fact of the
significant growth of its number of papers, journals, and books, one of which is Inbound
Open Innovation in the general developing country (Lalić et al., 2017). Nonetheless, the
necessity of applying open innovation is still considered as ambiguous to be applied in
the developing country. On the one side, globalisation has insisted all companies
worldwide to compete with foreign countries, both the other developing countries and
developed countries. To keep being updated and sustainable, companies from the
developing country are forced to enhance their strategy, one of which is innovation
(Lalić et al., 2017). On the other side, since open innovation has just started its rapid
growth process (Hartono and Kusumawardhani, 2018), there are a lot of barriers which
inhibit the process of Inbound Open Innovation in developing country from both internal
– such as financial and risk barriers, time constraint, and inadequate R&D division – and
external – such as issues regarding legislation and governmental (Ivana and Petar, 2018).
Moreover, the companies’ inability to absorptive capacity will generate an unsuccess
outcome if they conduct Inbound Open Innovation (Ivana and Petar, 2018).
This dissertation will take Indonesia as a case study. Indonesia is a big developing
country in south-east Asia, which is currently rank four by population with, according to
Worldometers (2019), 269,627,149 population. Badan Pusat Statistik (2019) presents
that in 2018, there are 160,576 construction companies distributed in the whole country
– 130,771 small companies, 28,254 medium companies, and 1,551 large companies.
However, it is being questioned when Indonesia is currently planning the massive
infrastructure development with $412billion budget for rebuilding the country
(Suhartono and Salna, 2019) which require an extensive innovation performance, but
Indonesia construction companies rarely (Hartono and Kusumawardhani, 2018).
Furthermore, the number of research on Open Innovation in the construction
companies in Indonesia are very scarce (Hartono and Kusumawardhani, 2018), which
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just attracted practitioners attention since 2016. Through Scopus, there are only 9
articles that match the words “open innovation”, construction, and Indonesia in the
article title, abstract, and keywords which from 2016 to 2019, while there is no article
match the words “inbound open innovation”, construction, and Indonesia or “inovasi
terbuka”, konstruksi OR kontraktor, and Indonesia in Scopus and Google Scholar
respectively. Henceforth, since the number of private construction companies in
Indonesia has an extensive growth in the whole Indonesia and the fact that most of them
have no R&D, private construction companies have chosen to be identified for this
dissertation.
Furthermore, as has been discussed above, the following are the clear research
problem for this study.
(1) What experience do construction companies worldwide have already adopted
regarding open innovation?
(2) Does Indonesia has ever applied open innovation in any industry?
(3) Prior discussing further of open innovation, does Indonesia adopt any innovation in
the private construction industry?
(4) Why does private construction companies in Indonesia reluctant to do inbound
open innovation?
(5) How to improve the company’s desire in adopting open innovation in Indonesia’s
private company?

Research Aim
The aim of this research is to investigate inbound open innovation practices in Indonesia
private construction companies and define guidelines to promote them.

Research Objective
The objectives of this research are:
1. To determine the current adoption of open innovation in construction industries;
2. To identify Indonesia’s experience of open innovation;
3. To investigate the innovation practice in Indonesia private construction
companies;
4. To analyse the barriers of inbound open innovation in Indonesia’s private
construction companies;
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5. To propose the recommendation for the development of inbound open

innovation in private company of Indonesia construction industries.

Research Scope
This dissertation highlights open innovation practices in Indonesia private construction
company as the main topic. Therefore, Indonesia will be deeply discussed, the study will
be focused on the construction industry, and private company will be emphasised as the
sample. Moreover, the study will encompass inbound open innovation as a branch of
open innovation.

Outline of the Dissertation

This dissertation will be comprised of 6 chapters. Chapter 1 comprises of an
introduction, which includes background, gap of knowledge/research problem, research
aim, research objective, and research scope. Chapter 2 is a literature review chapter
which includes the theory of innovation, open innovation, inbound open innovation,
inbound open innovation in the construction industry, and barriers of inbound open
innovation in construction companies. Chapter 3 consists of research method which
covers research design, research method, data collection methods, data analysis
methods and research ethics. Chapter 4 discusses data analysis, which encompasses
data overview, data analysis preparation and data analysis execution. Chapter 5
provides the discussion of the result which examines each of the research objectives;
open innovation in the construction industry, open innovation in Indonesia, innovation
in Indonesia private construction companies, barriers of inbound open innovation in
Indonesia, and recommendation for applying Inbound Open Innovation. Finally, chapter
6 presents the conclusion of the whole dissertation which provides conclusion,
limitation, contribution to knowledge, and recommendations for further research.
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Literature Review

Introduction
This chapter introduces the literature review of innovation, open innovation, and
inbound open innovation. It covers the outcome types, challenges, and trust required of
inbound open innovation in a construction company. Lastly, in the final phase, the
barriers of inbound open innovation are discussed, gathered from some research, which
includes of financial issues, social skills, self-confidence, and government involvement.

Innovation
The idea of innovation has come a long way. According to Crosscombe (2018), the
broader human knowledge induces the semantic change since it is first defined in 1553
in the book of The History of Quintus Curtius. The text refers to innovation as “the
alteration of what is established by introducing new elements of forms” (Crosscombe,
2018, p.49). Within several years, innovation is started to be applied in the other
industries, religious and political sectors, and subsequently, it attained to the sales
industry, which the interpretation was no longer relevant to the alteration and the
growth of knowledge. The previous definition, which only included ‘introducing new
elements of forms’ was then deepened onto “the act of introducing a product to a
market” (Crosscombe, 2018, p.49). In this recent era, many practitioners generalise the
concept of innovation to a more expanded perspective. Barnett (1953, p.7) considers
innovation as “any thought, behavior, or thing that is new because it is qualitatively
different from existing forms.” Innovation delivers benefit through two perspectives. On
one side, Innovation is being a ‘survival tool’ for a company to avoid termination (Klippel
et al., 2008; Chesbrough, 2003; Audrestch, 1995). On the other side, through innovation,
a company will receive a long-term benefit, such as a higher profit by spending some
investment in the short-time period (Alawamleh et al., 2017).
Essentially, the sense of why a company is doing innovation is to enhance its
competitive advantage (Yu et al., 2020; Gunasekaran et al., 2017) and improve
differentiation (Kaliappen and Hilman, 2014; Semuel et al., 2017; Yu et al., 2017) to the
competitor. Therefore, its success rate is depending on the innovation capacity (Tsai and
Liao, 2017), which in-house R&D is being the fundamental determinant on how the
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innovation should be conducted. Innovation capability and technology capability

becomes a requirement of which the companies should be highly considered, whereas
the innovation produces a positive value to the performance (Tsai and Liao, 2017). The
greater the innovation capability and technological capability, the more innovation will
be likely to be administered.

Open Innovation
Throughout history, Chesbrough (2003) introduces two types of innovation; closed
innovation and open innovation. Previously, the closed innovation or conventional
innovation has been a cornerstone for companies’ long-term welfare. To make this
concept successful, the company needs to invest in its R&D division, which requires high
control from inside of the company from developing to financing them. For a long time,
closed innovation has been widely used to keep the company sustainable. However, it
is now started to shift to the new concept in order to complement its current
technologies portfolio (Chesbrough, 2003). Open Innovation, which is the regeneration
of the previous paradigm, is now considered to be more effective and efficient in
improving the company’s performance (Bae and Chang, 2012). Chesbrough (2003, p.
xxiv), who creates this term, defines Open Innovation as “a paradigm that assumes that
companies can and should use external ideas as well as internal ideas, and internal and
external paths to market, as the companies look to advance their technology.” The idea
of open innovation is not only utilising the raw idea from the external stakeholders but
also combine them with internal employee’s knowledge to generate more outstanding
innovation. Rumanti et al. (2016) encompass its study on the open innovation
conceptual models, which can be seen in Figure 2.1.
Chesbrough (2003) describes various factors which have implicitly driven the
shifting paradigm from the conventional to the modern view of innovation – closed to
open innovation. Firstly, it is considered to be cheaper to collaborate with companies
with more knowledge rather than pay the training for the new employee. Secondly, the
number of college and post-college training are exploded, which university is known to
be the source of knowledge. Thirdly, the existence of private venture capital as
innovation intermediaries. Lastly, the market which keeps improving and the desire of
customer which is also getting more knowledgeable. These erosion factors, thus, insist
 8

on companies to alter the innovation behaviour to the more modern innovation, open
innovation.

Figure 2.1 Conceptual Model of Open Innovation

(Rumanti et al., 2016)

Rauter et al. (2018) state two measurements to assess the success of open
innovation; economic and sustainability performance. Firstly, economic performance
refers to anything that is directly associated to the project and its internal stakeholders,
such as turnover, margin growth, market share, and customer satisfaction (Manion and
 9

Cherion, 2009), which emphasis differs from one to another sector. Construction
industry, for instance, highlights the iron triangle as the economic measurement
although there are some other determinants. The previous study has demonstrated that
closer collaboration with the external stakeholders is the company’s sign that they lack
internal expertise (Rauter et al., 2018). As the companies have no capability in
innovation or technological, their R&D fails to produce a beneficial innovation regarding
economic performance. Therefore, they are seeking for the external stakeholder to
acquire the missing pieces of resources. Past empirical research has proven that external
stakeholders, such as university, intermediaries, and other related institutions, are
boosting their innovation capacity to be able to perform the inbound open innovation
(Striukova and Rayna, 2015; Gascó, 2017).
Secondly, sustainability performance involves anything that is directly related to
the environment of the project and the project’s external stakeholder, such as
environmental demands and social requirement (Rauter et al., 2018). Innovation that is
also pinpointing in sustainability performance is also known as eco-innovation,
environmental innovation, or green innovation. Considering environmental impact is
being a voluntary implementation for a company to pursue this value. However, since
many companies are not intensifying to adopt sustainable performance, regulations are
often required to stimulate the company to persevere the eco-innovation (Tsai and Liao,
2017). This issue arises since innovation is more correlated to the project, where the
project is often impacted a negative value to the environment. However, unsurprisingly,
Rauter et al. (2018) finds that the company who did many open innovations is more
likely to put more attention to sustainability performance. Companies tend to learn from
the experience. When the company did open innovation, which generated a negative
value to the environment, they started considering environmental sustainability for
further open innovation. Both economic and sustainability performance should
represent a synergy and connected.

Inbound Open Innovation

According to the definition of open innovation by Chesbrough (2003), he states that
open innovation comprises the flow of inbound and outbound. Innovations are not only
brought from outside to the company but also sent out to the market. Inbound
innovation is the applicability of external knowledge, combined with the employee’s
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knowledge, in order to generate the new market, while outbound innovation is the
practice to bring the internal innovation outside the market through intermediaries or
outward technological transfer with the purpose of commercialisation the idea
(Chesbrough et al., 2006; Lichtenthaler, 2009; Chiaroni et al., 2011). Compared to
inbound open innovation, outbound open innovation is less common since a company
often sees its innovation as precious and neglect to share it to be applied by the other
companies. However, Lichtenthaler (2009) has proven that outbound open innovation
could increase the company’s performance. Inbound open innovation, on the other side,
is a more popular innovation even though it requires ‘absorptive capacity’ (Spithoven et
al., 2010). The company needs to have the ability to absorb the technology and
knowledge from external stakeholders, combine them with their own, and apply them.
Therefore, a company must have the transparency of the boundary of the companies
(Spithoven et al., 2010). Henceforth, this dissertation will emphasise on inbound open
innovation rather than outbound open innovation.
Absorptive capacity is one ingredient which comprised open innovation
(Spithoven et al., 2010). It is a crucial factor which could determine the success of the
innovation because in some circumstances, acquiring an idea from external knowledge
is not enough if the company cannot comprehend and implement them. Cohen and
Levinthal (1990, p. 128) identify absorptive capacity as “the ability of a company to
recognise the value of new, external information, assimilate it, and apply it to
commercial ends.” In other words, it could also mean the company’s ability to apply
external idea effectively (Xia and Roper, 2016). Therefore, strong R&D is crucial in the
company’s structure organisation, which drives open innovation’s success. It needs to
have a high stage of continuity and ability to internalise the external knowledge which
depends on the learning environment, either from their own experience, an expert, or
other more sources (Xia and Roper, 2016; Spithoven et al., 2010).
Organisational culture is another element for inbound open innovation (Taylor et
al., 2019) since it requires significant changes in a company. It is generally defined by
Laforet (2016, p.4) as “a set of norms, attitude, values, and behaviour patterns that form
the core identity of an organisation or operating unit.” The culture of the organisation is
the one which determines the company’s willingness and ability to conduct innovation
and collaboration (Matricano et al., 2019). Those factors need first to be established in
 11

every individual, which combinations reflect the company’s decision to do the

collaborative innovation. When a company has a strong foundation, that base will be
the organisational culture and a tradition. The features of organisational culture that
boost innovation are strategy, structure, support mechanism, behaviour that
encourages innovation, and open communication (Taylor et al., 2019; Martins and
Terblanche, 2003), which model could be seen in Figure 2.2.

Figure 2.2 Model of Organisational Culture

(Martins and Terblanche, 2003)
 12

Inbound Open Innovation in construction companies

These days, economic growth is ascertained by the infrastructures, which makes it
crucial to the countries (Aouad et al., 2010). Nevertheless, the client’s needs and
requirements are dynamic throughout time, which compel the contractor to
continuously innovating as risk, opportunities, and challenges also keep altering (Auoad,
2010). Construction companies are then competing to do the innovation, from closed to
the open innovation. Through open innovation, they are collaborating with the external
stakeholder to increase their innovation capability. The type of construction output that
might derive from the construction industry is related to the materials, machinery and
techniques, time, ecology, product performance, and management. However, there is
only a few researchers have an interest in encompassing this area, particularly
associated with inbound open innovation (Achtenhagen and Melander, 2014) which
might result in lack of knowledge in the way to do it, the impact, or the challenges. There
are only ten papers found through Scopus with the keyword “inbound open innovation”
AND construction in the abstract, title, and keyword. Kattaria et al. (2019) add that the
construction company has a low absorptive capacity, which is the main elements of
conducting inbound open innovation.
As the era continuously expanded, challenges of the inbound open innovation are
also kept shifting to the more complex and detail threats. Kattaria et al. (2019) structure
the challenges that arise in doing inbound open innovation; competition, culture, time,
and sustainability. The extraordinary argument of doing inbound open innovation is, on
the one side, they are competing with others by trying to satisfy the client’s need or
beyond the client’s requirement. On the other hand, through inbound open innovation,
they might work together in accordance with innovation. Differentiation, in the end, is
the goal that companies are pursuing to enhance their competitive advantage (Yu et al.,
2020; Gunasekaran et al., 2017). Furthermore, organisational culture is another
challenge of doing inbound open innovation since all the employee needs to have a
willingness and ability to underpin their innovation capacity through open
communication, honesty, encouraging risk-taking, resources exchange, and the process
of the innovation itself (Matricano et al., 2019).
 13

Moreover, time should be a consideration to conduct inbound open innovation

since there are many variables involved. It takes time for the R&D division to conduct
research and do the trial. Some innovation failure might also occur on the site. For
example, when the innovation is applied, the site condition might be different from the
research condition. It should be examined before implementing innovation as it might
delay the project (Kattaria et al., 2019). Additionally, sustainability is being a new
challenge when innovation is associated with the environment. Companies should
favour issues regarding wastes that might harm the surroundings, particularly when it
impacts the other external stakeholders (Kattaria et al., 2019; Rauter et al., 2018).
Trust is, henceforth, being the most crucial yet challenging in every sector of
collaborating. The success rate of inbound open innovation is highly influenced by both
parties’ trust (Achtenhagen and Melander, 2014). It takes much time, could be years, to
create strong bonding between one company to the other institutions, which could end
succeeded or failed. One way to build trust is through honesty, which is related to
organisational culture (Matricano et al., 2019).

Barriers of Inbound Open Innovation in construction companies

Following are the general barriers of inbound open innovation that are the findings of
several researchers; financial issues, social skills, self-confidence, and government
involvement.

2.6.1. Financial Issues

Innovation is often contradicting with the issue of finance. Financial issues itself have
two perspectives; the capital cost (Grossman and Helpman, 1990; Kattaria et al., 2019)
and the economic condition of the other company for a partner selection (Aloini et al.,
2016). The capital cost could be considered as all costs that are relevant to the
innovation, from the first transaction to the price when innovation is edible to be
applied. Therefore, it is linked to the other company which economic condition should
be identified before the collaboration, including its historical economic performance and
financial stability (Aloini et al., 2016); otherwise, innovation might fail to pursue its
objectives and harm both parties. Moreover, the other company’s future economic
margin should sometimes also be forecasted. The result of inbound open innovation
 14

should be calculated to cover the cost of the capital and compensate for the risks that
might occur (Grossman and Helpman, 1990).

2.6.2. Social Skills

Social skills related to employee and organisational attitude toward innovation
(Hartono, 2018). The attitude which is related to the inbound open innovation is being
opened to external knowledge and exploring the new knowledge and ideas
continuously; otherwise, its attitude might be the cause of stagnant development of the
innovation capability. The growth of the attitude could be reached through two
methods; experience and knowledge sharing (Lichtenthaler, 2011). Both create a new
perspective of visualising an inbound open innovation, while experience comes from the
individual, but knowledge sharing comes from the other individuals. Kattaria et al.
(2019) add that the failure of growing the innovation capability could lead to a lack of
technical competencies.

2.6.3. Self-Confidence
Self-confidence often occurs from the senior managers, such as foreman, site manager,
project manager, the board of director, CEO, or even expertise. Self-confidence, which
is being a barrier of inbound open innovation in construction company comprises of two
factors; over-confidence (Kattaria et al., 2019) and lack of confidence (Lichtenthaler,
2011). For instance, when the top management in the company has a high demand for
the worker’s performance in the project, and they reduce project duration and project
cost, while in the same time, they need to do the inbound open innovation. It will surely
increase the cost and might end up delay.

2.6.4. Government Involvement

The government could be a barrier to inbound open innovation. For some particular
countries, the regulation which might impact inbound open innovation might not clear
and generate bewilderment among the contractors (Kattaria et al., 2019). For instance,
the issue associated with the patent. When innovation is created through collaboration,
it is supposed to be different on how the procedure to get the patent to the closed
innovation. Regulation must be clearly defined on how to do it properly, who will get
the patent, and so on. The government could also encourage open innovation practice
by giving an incentive or creating intermediaries. Currently, some countries have
 15

supported open innovation in various ways, such as Belgium (Achtenhagen and

Melander, 2014). The Belgian government has a research centre which encourages the
knowledge sharing for open innovation and being the source of inspiration for
cooperation. Additionally, they provide a particular division which specifically
encourages companies and institutions to conduct open innovation (Achtenhagen and
Melander, 2014).
 16

Research Methodology

Introduction
As has been stated in the chapter title, this chapter will emphasise the detailed
discussion of how this research is going to be done from identifying the research strategy
to analyse the data. This section will be comprised of research design and research
method. Furthermore, data collection methods will be identified include how the
sample is chosen and the method for data analysis. In the last part,the consideration of
ethics and risk while gathering the data is also presented

Research Design
Throughout years, the idea of the existence of research design in qualitative research is
being argued whether it is crucial or not. Maxwell (2009) halt the discussion by stating
that research design is required with the broader and less restrictive approach, yet it is
flexible between one and other research. Thus, there is no particular arrangement on
how to do qualitative research (Maxwell, 2009). However, the concept of research
design is consistently initiated through an understanding of the whole idea of the study.
It is commenced by questioning ‘what this research is going to pursue,’ followed by
‘what the order of the steps for conducting the research’ (Janesick, 1998). To conclude,
research design defines as the understanding, idea, and theory that govern the set of
research action (Groenwald, 2004).
Within the necessity of the research, research design is crucial to be made at the
outset. Besides contributing in filling the knowledge gap by pursuing the research
objectives (Brookes, 2019), the good, detailed, and clear research design is believed to
have a higher probability of generating the more satisfying result, while poor research
design might cause failure (Maxwell, 2009; Bordens and Abbott, 2011). The favourable
research design is the combination of its good elements. As has been mentioned
previously, research design is elastic that components could be different from one to
the other researchers but has a similar idea (Janesick, 1998). Maxwell (2009) formulates
five features of research design, which are interconnected that positively helps the
research; goals, conceptual framework, research questions, methods, and validity.
Nonetheless, Brookes (2019) develops the more detailed features of research design
 17

which comprised of sample selection, research approach, research instrument, data

collection, and data analysis method. The following Figure 3.1 is the framework of the
research design for this research, which is adopted from Brookes (2019) model.

Figure 3.1 Research Design.

Adopted from Brookes (2019)

Research Method
Research can be done through two methods; qualitative and quantitative method. To
meet the satisfying result of this research objective, the method which is considered as
more appropriate for this research is qualitative method. Qualitative approach is
emphasised by Bell et al. (2019, p. 355) to be more related to “words rather than
numbers.” Individual’s point of view and in-depth involvement of the participant is a
highlight for this method (Seale et al., 2004; Vaismoradi et al., 2013). Specifically,
qualitative method is selected in this dissertation because of the respondent’s
accessibility. Additionally, it gives flexibility to the interviewee to tell the experience
through the open questions, and the respondents can be more opened since samples
are selected with convenience sampling, which means that they have known the
researcher in person. Expression also takes an important role to assess the respondent’s
understanding in open innovation, since it is still considered as a new concept.
Therefore, to know the practice of open innovation, qualitative method is suitable for
pursuing the aim of this research.
There are several advantages of qualitative method according to Bell et al. (2019).
One of which is the individual’s point of view of the participant about open innovation
is allowing the researcher to equate the perspective of this topic with the participant.
 18

Understanding the practice of open innovation requires the participant’s point of view.
Therefore, by looking or listening to the participant, the researcher’s understanding of
the story is increasing, which then avoiding misconception. Moreover, the more detailed
explanation and surprises fact of the context could be acquired if participant and
researcher could meet face to face. Words are not the only element of the qualitative
study, sometimes photographs or videos could be presented by both parties for better
understanding of the object of the research during the interviews (Bell et al., 2019).
Nevertheless, subjectivity should also be considered as a disadvantage of the
qualitative method since the research is often subjective to the researcher rather than
objective. (Bell et al., 2019). However, subjectivity in qualitative research is often a
contentious notion. On the one side, it is often considered as unfair and not accurate.
Qualitative method has to achieve a certain level of credibility, transferability,
dependability, and concompanyability to ascertain its accuracy (Harper and Kuh, 2007).
On the other side, Garcia and Quek (1997) state that subjectivity could be an advantage
instead of being a disadvantage by enhancing the richness of the outcome since it is an
essential part of the research. Subjectivity could be an additional benefit if it is
conducted in its portion – not over subjective and not over objective. In this research,
structured interview is planned to be conducted as the research instrument for
answering research objective 3, 4, and 5, while research objective 1 and 2 are discussed
through literature review.
The research approach to qualitative research is often inductive. Theory is treated
as something that is emerging through data collection and analysis rather than tested
(Bell et al., 2019; Saunders et al., 2012). It is considered to be unique since by applying
the basic rules of a particular topic, it is not uncommon that research creates a new
theory (Alasuutari, 1995). The benefit of the inductive approach is enhancing the
understanding of the topic through in-depth analysis such as a cause-effect link.
Therefore, it is determined to be more realistic since the theory is made out of the real
data.
 19

Data Collection Methods

3.4.1. Sample Selection
For this research, the respondents are chosen using convenience sampling. According to
Etikan et al. (2016, p.2), purposive sampling is “a type of nonprobability or nonrandom
sampling where members of the target population that meet certain practical criteria,
such as easy accessibility, geographical proximity, availability at a given time, or the
willingness to participate are included for the purpose of the study.” Convenience
sampling is selected since the researcher has a limited time to conduct an interview.
Interviews were done in a different country with where this dissertation is created, and
the researcher only had three weeks to interview 13 people. Therefore, the result of this
research might not be strong and require a further research (Etikan et al., 2016).
However, since the most respondents are the researcher’s connections or relatives, the
answer might be more detailed and is based on their experience instead of more
theories, which the new theory generated from the research can be assumed as
validated.

Moreover, snowball technique is also selected, which from the previous

respondents, researcher establish other people, which is relevant to the research topic
(Bell et al., 2019). Through this technique, it helps the researcher to acquire more
respondents from the different companies or the other perspective of someone from
the same company with a different position in order to enrich the findings.

3.4.2. Data Collection

For this research, data will be assembled through two methods; primary data and
secondary data. In-depth structured interview will be conducted with a purpose of
gathering primary data, and literature review as secondary data will be collected.
a) Primary Data
The method for acquiring the primary data for this dissertation is an in-depth
structured interview. Structured interview, according to Gill et al. (2008, p.291), is
defined as “essentially, verbally administered questionnaires, in which a list of
predetermined questions are asked, with little or no variation and with no scope for
follow-up questions to responses that warrant further elaboration.” This method is
 20

considered as the most appropriate for this dissertation due to various reasons
theoretically and particularly.
Theoretically, a structured interview allows the interviewee to explore
activities performed, belief, and motivation of the interviewer on open innovation
(Gill et al., 2008; Spithoven et al., 2010). It is, however, also being a drawback in
conducting a structured interview. The trend is being subjective to the interviewee
since it is based upon an individual view (Englander, 2012). Since the researcher
decides to interview several people, which are senior managers, based upon initial
research, the participant’s answer might be affected by their position - CEO, board
member of director, corporate officer. In addition, due to less variable of the
interviewee, the margin of error can be reduced, which, therefore, data analysis can
be more accurate (Bell et al., 2019).
Particularly for this research, this method is chosen because of the data
availability and time limitation since the respondents required are those in a high
position or understand the practice of innovation in their company. Research using
structured interview does not require a vast number of respondents and a relatively
consume shorter time than the other data collection method. Moreover, structured
interviews are considered to give the richest information to the researcher since
most of the respondents are the researcher’s connection, which respondent might
be more flexible and opened to tell the experience and provide essential details.
Structured interview is considered as relevant where knowledge has not been
grown extensively, the detail is required from the interviewee, or discuss sensitive
topics (Gill et al., 2008). Depth discussion is crucial for inductive approach research.
Furthermore, innovation is being a sensitive topic, where some companies are
reluctant to adopt it. Specifically, through structured interview, this research is
expected to meet research objective 3, to investigate how innovation practice in
Indonesia private construction company is, research objective 4, to analyse the
barriers, and research objective 5, to propose the advice system for the
development of inbound open innovation in the private company of Indonesia
construction industry.
 21

b) Secondary Data
To meet the research objective 1, to determine the current adoption of open
innovation particularly in the construction industry, and research objective 2, to
identify Indonesia’s experience of open innovation, primary data is taken through
literature review. This method is chosen to prevent ‘reinventing the wheel’ since
some knowledge has already provided. Critical reading is required to be engaged in
the scientific debate to create an argument about the research topic (Bell et al.,
2019). This method is selected since several inductive papers have been created and
theory has been generated in the society, but it is all being an independent theory,
and no papers have particularly discussed them as one, as a practice of open
innovation in the construction industry and open innovation in Indonesia.

Data Analysis Methods

For this research, qualitative analysis is conducted because of the richness of qualitative
data. To achieve the aim of this dissertation, qualitative analysis is required to get a more
detailed and more profound result. Thematic analysis is chosen as the method to analyse
the data, which is characterised by analysing the themes that have been created
previously (Bell et al., 2019). Several aspects recommended by Ryan and Bernard (2003)
in creating the themes; repetition, indigenous typologies, metaphor and analogies,
transitions, similarities and differences. For this dissertation, this method is chosen
because of the researcher desire to highlight the most emphasised themes by the
interviewees. The more frequent categories represent the more accurate result that
they are the driving factors, benefits, and the barriers of innovation practice in Indonesia
private construction company. Therefore, top two or top three of each category could
be highlighted, which result could be pursued through thematic analysis.
The process of thematic analysis is conducted as follows. Interview transcript will
be coded onto several categories to allow the researcher to make the complete story of
the open innovation, which is called thematic analysis. However, the result of qualitative
analysis depends on the researcher. The researcher must have the ability to see the
richness of the qualitative data to generate a new and interesting theory because some
words might have multi-meaning (Bell et al., 2019). For this dissertation, the researcher
uses the software NVivo and Microsoft Excel for coding. Coding is the iterative action to
create a framework or theory through the connection between the major concept of the
 22

obtained raw qualitative data (Namadarian and Naimi-Sadigh, 2018; De Cuir-gu and
Mcculloch, 2011; Elo and Kyngäs, 2008). Cohen et al. (2013) expand the process of
coding into three phases; open coding, axial coding, and selective coding.
A. Open Coding
At the first phase, the researcher notes the category in the raw data acquired from
the interview while reading it. The category should be freely made that represent
the important phrase of the interviewee’s words, which is called the set of the
preliminary concepts. It is then coded in the form of PCi (i = 1 - 218) where PC is the
abbreviation of preliminary concept. PCi includes the important phrase of the
interviewee that will be useful for further research (PC1 refers to preliminary
concept 1)
B. Axial Coding
At the second phase, the researcher grouped the preliminary concepts into the
smaller category, which still represent the phrase by collapsing its similar and
dissimilar idea and characteristic with the help of NVivo and Microsoft Excel. The
group is then coded in the form of Gi (i = 1 - 132) where G stands for group. Gi
includes the category made which serve as the several PCis (G1 refers to group 1)
C. Selective Coding
At the last phase, the researcher creates a smaller category which comprised of
several categories from axial coding. It is not coded with a specific format as
previous open and axial coding, but a number is assigned to each selective coding
category.

After coding has been conducted, the analysis is continued with word frequency
analysis. Word Frequency Analysis is one of the suitable methods to analyse qualitative
research. It is often done electronically with the help of software, such as WordSmith
(Archer, 2016) and NVivo. Word frequency could be verified in two approaches. N-
grams, which extract the words next to each other, and Collocation, which emphasise
on the words that are not next to each other but has a relation to create an exciting
phrase to be discussed (Archer, 2016).
 23

Research Ethics
When researchers are gathering the data through qualitative method, ethical and risk
are being an important issue. Ethical is not only about consent or anonymity of the
participant but also an explanation of how the research is going to be done from the
data collection to the data analysis, until how the data is stored and destroyed at the
end of the study (Atkins and Wallace, 2012). There are three issues regarding ethical;
informed consent, privacy and confidentiality, and deception (Bordens and Abbott,
2011). Therefore, ethical consideration should be written in an informed consent form
and ethic form published by the University of Leeds and should be agreed by both
parties before conducting the data collection. Moreover, when the researcher
contacted the participants, the research proposal should be shown to the respondent
to ensure their rights, well-being, and confidentiality of the participants (Bordens and
Abbott, 2011).
Furthermore, when the researcher meets the research participant to gather the
data, the participant will be informed that the data will be used for this research only
and will not be spread to anybody. Regarding confidentiality, even though informed
consent document usually has explained how the data is going to be presented in the
final report and the participant’s identity will not be presented, it sometimes cannot be
assured and does not reduce participant’s awareness that the agreement is violated
(Wiles, 2013). Furthermore, risk is also being a consideration since many variables might
be the factor of certain situation emerging, such as the nature of the place where the
data is collected, the condition of the country, and other variables. Therefore, risk form
by the University of Leeds should also be filled.
 24

Data Analysis

Introduction
Chapter 4 emphasises on how the primary data is analysed from the very beginning and
generate an outcome that could achieve the research objective and filling the gap to
give a contribution to the knowledge of innovation. This chapter will begin with
presenting the data overview, particularly the validation of the interview question, how
the size of the sample is chosen, and an overview of primary data. Preparation before
analysing the data is then followed, which is specifically discussing the data preparation
itself and initial categorisation. When all have been prepared, the execution of data
analysis is performed through coding and word frequency analysis, which has been
mentioned in chapter 3; open coding, axial coding, and selective coding.

Data Overview
The primary data for research objectives 3, research objective 4, and research objectives
5 are gathered using qualitative research, particularly structured interview, which has
been intensely discussed in chapter 3. Interviews are conducted between 2nd April 2019
to 21st April 2019 in Jakarta, Bandung, and Tangerang, Indonesia.

4.2.1. Interview Question Validation

Even though structured interview has a higher rate of validity, it is still a necessity to
review whether the question is polite and good enough to gather the desired data,
particularly when it is a historical behavioural question, which highlighting experience
and specific situation as the interview response (Hartwell et al., 2019). This interview
questions had faced a range of processes before it was questioned to the respondent.
Preliminary interview question, as well as ethics and risk forms, was firstly created and
brought up to the supervisor, a lecturer who has a responsibility to supervise the author.
Two feedbacks were gained on 15th March 2019 and 29th March 2019 before the
questions were finalised on 1st April 2019. The interview questions could be seen in
Appendix 4. This feedback aims to produce better questions and maximise the more
interesting and specific result which could be gathered through interviews while
respecting the respondent at the same time.
 25

The interview questions are divided into four main ideas depending on previous
interviewee response; introduction, individual and company’s profile, innovation, and
inbound open innovation. The meaning for each question could be seen in Table 4.1,
while the detailed question is presented in Appendix 4.

Table 4.1 Interview Question Themes and its Meaning

No Themes
1 Introduction
Individual and Company's
2
Profile
Innovation
- Innovation performance
3 (or is conducting) innovation or not
- Innovation success rate based
on iron triangle
- Division in charge of
Innovation
Inbound Open Innovation
- Inbound open innovation
performance
- Division in charge for inbound
open innovation
4 To ask the interviewee about the benefit of
- Interviewee perspective of
inbound open innovation
- Interviewee's desire to do
inbound open
innovation/Recommendation
for doing inbound open
innovation
Meaning
- To presents the goals and objectives of this
research
- To ask for interviewee consent and explain the
interviewee rights on the interview
- To build the connection between interviewee
and interviewer
To get an overview of the company's size and the
position of the interviewee
- To acquire a general perspective of the
companies in context of innovation, including
why a company reluctant to conduct innovation
-To know whether the company has conducted
To know the company's assessment criteria for
assessment success
To ask for opinion of the fact that most
companies (and the company interviewed) are
not investing or even possess R&D division
- To introduce and equate the perspective of
inbound open innovation
- To know whether the company did innovation
or not, including the company's experience in
performing open innovation (To implicitly acquire
the barriers if the company is not having a
thought of conducting inbound open innovation)
To get another idea of the company’s opinion in
possessing the R&D division
inbound open innovation for the purpose of
giving a knowledge for them that inbound open
innovation is beneficial and necessary to be
applied
- To ask for interviewee desire for implementing
inbound open innovation in the future since they
have acquired new knowledge
- To ask the interviewee to encourage the other
construction companies for performing inbound
open innovation
 26

4.2.2. Sample size

Qualitative research often faces a challenge regarding the sample size, which is the
determination of the sample size. Hogarth (1978) and Schutte (1965) have agreed that
the sufficient respondents for research purpose are 4 to 12. However, Ragin and Becker
(1992) opine that approximately 20 people should be interviewed for M.A. dissertation.
Nevertheless, Bell et al. (2019) suggest that it depends on whether the data has reached
theoretical saturation or when the information is felt sufficient to satisfy the research
objective. It should also be linked to grounded theory and the limitation of the research
time and research cost. It is then hardened in this research through the snowball
sampling when some interviewees are obtained without anticipated at the outset.
Therefore, according to Bell et al. (2019), Ragin and Becker (1992), Hogarth (1978),
and Schutte (1965) findings, it is decided 12-20 people from 10-15 companies are
interviewed and predicted to have reached the theoretical saturation. All of them are
private construction companies in Indonesia, ranging from small to large companies.
People who are interviewed hold senior positions such as the corporation’s board of
directors, corporate officers, managers, or people in charge of innovation and open
innovation. They are chosen because they are people who understand more about what
innovation has been done by the company.
They were first contacted through e-mail and explained the purpose of this study
and their involvement in this research. From 34 companies contacted, 12 people did not
respond to the message, while 22 other people replied to the message. Between those
22 people, only nine people were agreed to be interviewed and become the respondent
for this research. The other thirteen people refused due to various factors, such as not
familiar with the topic and never done any innovation. The other four people are chosen
through snowball sampling, where the respondent advise people from the same or
different companies. The model of the interviewee can be found in Figure 4.1. As a
result, 13 people were interviewed from 10 different companies.

Figure 4.1 Interviewee Model

 27

4.2.3. Overview of Primary Data

All interviews are conducted in Indonesia language, Bahasa since the interview in the
second language could either cause confusion, misunderstanding, or misconception.
Moreover, through the first language, the interviewee might give more detail and
deeper response. In total, there are thirteen interviews conducted from ten different
companies ranging from small to large companies. Each company will be coded CO-i
where i is 01 to 10, and each interviewee will be signed IO-i where i is 01-13. Details of
the interviewees and companies’ profile could be seen in Table 4.2 and Table 4.3.

Table 4.2 Company’s Profile

Code Company Base Size

CO-01 Bandung Medium
CO-02 Bandung Small
CO-03 Jakarta Small
CO-04 Jakarta Medium
CO-05 Jakarta Medium
CO-06 Tangerang Large
CO-07 Jakarta Medium
CO-08 Jakarta Medium
CO-09 Jakarta Medium
CO-10 Jakarta Medium

Table 4.3 Interviewee’s Profile

Interviewee Date Duration Company Sector

Interview Position
Code Interview (mins) Code Industry Academic
1 IO-01 5-Apr-19 28 CO-01 • • CEO
2 IO-02 8-Apr-19 17 CO-02 • • CEO
3 IO-03 15-Apr-19 21 CO-03 • Vice CEO
4 IO-04 12-Apr-19 44 CO-04 • • CEO
5 IO-05 12-Apr-19 34 CO-05 • • PM
Head of
IO-06 •
R&D
6 11-Apr-19 51
Member of
IO-07 •
R&D
CO-06 Director of
Human
7 IO-08 11-Apr-19 25 • Capital and
Developme
nt
8 IO-09 15-Apr-19 31 CO-07 • • CEO
9 IO-10 13-Apr-19 20 CO-08 • PM
10 IO-11 9-Apr-19 24 • PM
CO-09
11 IO-12 9-Apr-19 22 • Director
12 IO-13 13-Apr-19 19 CO-10 • PM
 28

Data Analysis Preparation

4.3.1. Preparation of the Data
There are several steps to prepare the data before it is ready to be analysed in this
research. The transcripts of the raw interviews are first created in Bahasa language to
assure that there is no miss information provided by the respondent in the future
transcript. Then, it is translated into English to ensure that this transcript is
understandable, which could be seen in Appendix 5. During this first two steps, the
chunks sentences and words are fixed and corrected to provide the comprehensible
data, such as grammar and spelling corrected, and word order in a sentence revised.
The general overview is then concluded from the transcript results of which
companies adopted closed innovation and inbound open innovation, and which are not.
Closed innovation is acknowledged as a tool to keep the companies’ sustainability by
gaining the benefits and enhancing their competitive advantage (Klippel et al., 2008;
Audrestch, 1995). However, interestingly, 9 out of 13 (69%) private construction
companies in Indonesia are refused to be the respondent due to their inexperience in
innovation. Therefore, the companies interviewed are those who have done or are doing
their innovation currently, which details could be seen in Table 4.4.
Open innovation and inbound open innovation, which are another branch of
innovation, are getting onto the practitioner’s attention since its appearance in various
sectors, one of which is the construction industry. However, as a big country in which
infrastructure is massively developing, the notion of inbound open innovation in
Indonesia has not been scrutinised by the researchers. Therefore, there are only a few
companies which have performed inbound open innovation. According to this research,
among ten companies, there are only two companies that have applied inbound open
innovation and one company that has currently just started, which data can be seen in
Table 4.4. It is concluded that the practice of these two notions of innovation is contrary
to the dogma developed in society, which believes that innovation is a necessity (Klippel
et al., 2008). Moreover, as the number of construction companies in Indonesia grows
rapidly within years, many companies should be compelled to continuously innovate
and gain the advantages. The statistical graph of the number of Indonesia construction
company throughout the years could be seen in Figure 4.2.
 29

Table 4.4 Companies which has conducted innovation

Closed Innovation Open Innovation

Code Have Have
Company ever Type ever Alliances Type
done done
CO-01 Yes Management Applying University Software
Equipment
CO-02 Yes No - -
Material
CO-03 Yes Method No - -
Machinery
CO-04 Yes No - -
Material
Material -
CO-05 Yes No -
Management
Manufacturing
Equipment Material
CO-06 Yes Yes Company
Method Roof Company Method
CO-07 Yes Method No - -
CO-08 Yes Management No - -
CO-09 Yes Management Yes Expertise Management
CO-10 Yes Management No - -

Number of Construction Company in Indonesia

170,000
NUMBER OF CONSTRUCTION COMPANIES

160,000
150,000
140,000
130,000
120,000
110,000
100,000
2012 2013 2014 2015 2016 2017 2018
YEAR

Small Medium Large

Figure 4.2 Number of Construction Company in Indonesia

Data from Badan Pusat Statistik, 2019; Accessed 12 July 2019
 30

4.3.2. Preliminary Categorisation

Saunders et al. (2012) suggest that before the analysis of the data is executed, it should
be firstly categorised. It should represent the objectives of this research, specifically
research objective 3, research objective 4, and research objective 5. With the help of
NVivo, mind map of the preliminary categorisation are created which divided the idea
of innovation to the smaller categories. This initial categorisation could be seen in Figure
4.3.

Figure 4.3 Preliminary Categorisation of Innovation

Data Analysis Execution

4.4.1. Coding
A. Open Coding
Open coding is done with the help of NVivo and Microsoft Excel. The author firstly used
NVivo to generate a mind map which comprised of driving factor, benefits, barriers, and
others. ‘Others’ contains of some important information that might be interesting to be
discussed which are not included in the other mind map branches. Creating the word
cloud is then followed. Word cloud is an image consisting of several words, which size
of the words represent the word appearance frequency in the interview transcript. The
bigger the word, the more frequent the word appearance in the word cloud. The word
cloud for this research could be seen in Figure 4.4 for closed innovation and Figure 4.5
for open innovation. According to the word clouds, the author chose which sentences
or phrases which were considered as important into the mind map. The coded phrases
could be seen in Appendix 6.
 31

B. Axial Coding
Secondly, the author, with the help of Microsoft Excel, did the axial coding, which
created a detailed category which defines the coded terms. One category could be
derived from several interviewees or several sentences or phrases from the same
interviewee. To be able to achieve the desired result research objectives 3 and research
objectives 4, the categories of closed and open innovation are separated. The list of
categories which has been coded Gi could be seen in Table 4.5 for Closed Innovation
and Table 4.6 for Open Innovation. The details of the phrases or sentences to which it
belongs could be seen in Appendix 7.

Figure 4.4 Word Cloud for Closed Innovation

Figure 4.5 Word Cloud for Open Innovation

 32

Table 4.5 Axial Coding Categories for Closed Innovation

Benefits Driving Factors Barriers Others

Code Closed Innovation Source Code Closed Innovation Source Code Closed Innovation Source Code Closed Innovation Source Code Closed Innovation Source Code Closed Innovation Source
PC4, PC63, Willingness to Learning from the
Too Focus on the Lack of PC28, PC118, PC88,
G1 Differentiation PC124, PC187, G11 treat their human PC1 G20 PC6 G36 PC71, PC84 G51 previous G59 Knowledge sharing
work preparation PC146, PC207 PC150
PC201 resource well experience
Planner is not
The rapid Do not reduce cost
Making the client PC24, PC58, looking at the real
G2 PC5 G12 advancement of G21 Trust PC7 G37 PC85 G52 Docummentation PC147 G60 by jeopardising the PC89
happy PC122 condition, not
material quality
well-planned
PC8, PC25,
Depending on the Lack of Knowledge Slow in Standard of quality
Maximising the PC39, PC59, PC40, PC65,
G3 PC64 G13 case (owner's G22 from the G38 sharing/promoting PC86 G53 Be Brave PC148 G61 through Quality PC107
work PC200 PC82, PC141,
requirement) contractor/Worker innovation Assurance
PC203
Keeping up with Different mindset
Start Depending
Supporting era, to make the PC2, PC60, between 10 years patent
G4 PC81 G14 G23 Assumption PC9 G39 PC85 G54 on Senior PC149 G62 PC108
Acceleration company PC184 economics and certificate
Management
developed engineers
Innovation should
Previous system is Underestimating PC10, PC87,
G5 Easier the work PC117 G15 PC61 G24 Lack of experience PC83, PC174 G40 PC103 G55 R&D is Important G63 be applicable to PC151
lacking the work PC208
industry
Misconception: As
long as our
Preventing client's Disallow to use Construction
company is doing
complaint due to previous Not settled People think they industry is
G6 PC102 G16 PC62 G25 PC26 G41 PC104 G56 PC11 G64 innovation for the PC178
bad quality, cost, technology due to company are the smartest primitive in terms
development of the
and time regulation changes of innovation
company, R&D is
unnecessary
Easy to be
Helping the PC41, PC66, satisfied with the Be prepared for
G7 Good reputation PC125 G17 PC80 G26 Time Constraint G42 PC105 G57 PC177 G65 Team work PC209
environment PC127 result of their the risk
work
Misconception of
PC126, PC162, Depending on the PC116, Lack of Knowledge
G8 Neater work G18 G27 PC42 G43 Low Mentality PC106 G58 innovation: PC72
PC188, PC202 issue PC185, PC200 from the owner
Imitation
Increasing Client's Preventing PC3, PC123, PC43, PC67, PC128,
G9 PC140 G19 G28 Cost Constraint G44 Patent
Trust Termination PC186 PC142 PC143
Misunderstanding:
innovating not for
G10 Improving Profit PC162 G29 Unnecessity PC44, PC163 G45 PC144
innovation, but for
patent
Learning the Not having the
G30 PC45 G46 PC145
wrong thing R&D Division
Not understood
G31 PC46 G47 Reducing Revenue PC201
the innovation
Conservative PC47, PC68, Poor Site PC174,
G32 G48
thinking PC164, PC175 Management PC205
PC27, PC69, Different
G33 Risk PC176, G49 Objective of the PC206
PC189, PC204 workers
Human Thought to
G34 only work and get PC70 G50 Technical Issue PC201
profit
Hard to promote
G35 or introduce the PC68
product
 33

Table 4.6 Axial Coding Categories for Open Innovation

Benefits Driving Factors Barriers Others

Code Open Innovation Source Code Open Innovation Source Code Open Innovation Source Code Open Innovation Source Code Open Innovation Source Code Open Innovation Source

Misconception of OI:
The process of PC31, PC91, Be able to prioritise
Reflecting from Not having the Company is reluctant Trust from R&D by
G66 innovation will be PC49 G80 PC12 G90 PC119, PC156, G104 PC158 G117 PC22 G125 iron triangle: Quality, PC137
other country R&D Division to pay University's the other worker
faster PC168 cost and time
research
Making sure
Wider area of everyone in the
No incentive/ Small Conversation PC23.
G67 innovation and new PC50 G81 Necessity PC13 G91 Lack of time PC92, PC168 G105 PC154 G118 G126 division belief that PC138
government support about innovation PC36
point of view they are going to
innovate
Value between
findings and research Socialised to people
PC32, PC53, PC37,
(research is PC90, PC155, Impossible to do Not the Focus, not PC182, in the company prior
G68 G82 PC14 G92 PC74, PC157, G106 No ability/knowledge G119 R&D is needed PC160, G127 PC139
theoretical, while PC167 training a priority PC216 applying it to avoid
PC169 PC199
construction company confusion
is practical)
Placed the worker
Improve employee's Misconception of OI:
PC33, PC170, PC21, PC56, Learning from the based on their
G69 work efficiency and PC29 G83 Lack of Knowledge PC15 G93 Unnecessity G107 Seminar/Inviting G120 PC38 G128 PC161
PC193, PC211 PC159 past experience expertise and site
effectiveness Expertise
condition
PC16, PC130, Preventing Reluctant to learn Profit share Be ready for culture
G70 Differentiation G84 PC48 G94 Legalised R&D PC34 G108 PC78 G121 PC79 G129 PC172
PC192 Termination new things contract change due to OI
PC73, PC109, Understand Innovation should
Increasing Competitive Not having Have not put some
G71 PC16 G85 PC129, PC165, G95 PC54 G109 Promoting the OI PC98 G122 knowledge PC100 G130 acceptable to the PC173
advantage resources budget
PC190, PC210 management client
Do not look too
Lack of Should be
Keep developing by PC19, PC55, much to the risk.
Getting knowledge Preparation: Lack of vision and supported by PC57,
G72 PC17 G86 keeping the good PC152 G96 PC73, PC93, G110 PC99 G123 G131 Instead, look at the PC183
from others Knowledge, mission stakeholder and PC101
quality PC194. PC212 result, impact to the
material, HR contractor
company
Matching the goal
Open Innovation could Cost suddenly turns
Depending on the Reputation, not PC121, and coordination Learning how to do
G73 be a big step for the PC18 G87 PC166, PC191 G97 PC76 G111 expensive due to G124 PC115 G132 PC218
case famous company PC134 with the other the OI
company unprepared condition
company
Collaborating with
academic is often
Gaining trust from Depending on PC110, PC153, PC35, PC113,
G74 PC30 G88 G98 too technical and PC94, PC213 G112 Time Constraint
owner Issue Occurring PC191 PC156
cannot be applied
to the site
PC20, PC95,
Coordination and
Culture change/ PC131, PC171,
G75 Work Faster PC30, PC51 G89 Incentive PC154 G99 G113 Matching interest are PC114
Conventional mind PC179, PC195,
hard
PC214
Worker inhibit
because they are
G76 Cheaper Cost PC30 G100 Politics PC96 G114 PC135
afraid of losing their
job
PC112, PC132, Only focusing on
G77 Better Work Result PC51 G101 Patent G115 PC136
PC215 profit and cost
Using Others' PC77, PC133, PC198,
G78 PC52 G102 Risk G116 Be a settled company
Resources PC180, PC196 PC217
Be Supported by the
PC97, PC120,
G79 competent Supplier or PC111 G103 Cost constraint
PC181, PC197
Producer
 34

C. Selective Coding
Selective coding is then conducted as the third step of the coding process. Through selective
coding, other smaller categories are created, which comprised of several categories from axial
coding. The categories which are formulated in selective coding could be seen in Table 4.7 for
closed innovation and Table 4.8 for open innovation.

Table 4.7 Selective Coding Categories for Closed Innovation

No Aspects Closed Innovation Source

1 Differentiation G1
2 Good Reputation G2, G6, G7, G9
Benefits
3 Better Work Performance G3, G4, G5, G8
4 Improve Profit G10
Willingness to treat their human
5 G11
resource well
Driving
6 Globalisation G12, G14, G15, G16, G19
Factors
7 Due to Issue occurring G13, G18
8 Helping the environment G17
G22, G23, G23, G27, G30, G31,
9 Lack of Ability and Knowledge
G35, G37, G38, G48
10 Unnecessity G20, G29, G34, G45
11 Different Objectives G39, G49
12 Underestimating G40, G31, G42, G43
13 Patent G44
14 Trust G21
Barriers
15 Time Constraint G26
16 Cost Constraint G28
17 Conservative Thinking G32
18 Risk G33
19 Lack of Preparation G36, G50
20 Not having the R&D G25, G46
21 Reducing Revenue G47
 35

Table 4.8 Selective Coding Categories for Open Innovation

No Aspects Closed Innovation Source

1 Differentiation G70, G71
2 Better Work Performance G69, G75, G77
3 Using Other's Resources G72, G78, G79
Wider Area of Innovation including
4 Benefits G67, G68, G73
new Point of View
5 Good Reputation G74
6 Improve Profit G76
7 Faster the Innovation Process G66
8 Due to Issue Occurring G87, G88
9 Lack of Resources G82, G83, G85
Driving
10 Globalisation G84, G86
Factors
11 Necessity G80, G81
12 Incentive G89
13 Not having the R&D G90, G94, G116
14 Unnecessity G92, G93, G95, G115
15 Lack of Preparation and Resources G96, G110, G111
16 Conservative Thinking G97, G99, G108, G114
17 Risk G102, G109
18 Time Constraint G91, G112
19 Barriers Cost Constraint G103
20 Government Support/Incentive G105
Different Interest between
21 G98, G113
institution collaborating
22 Lack of Knowledge G104, G106, G107
23 Politics G100
24 Patent G101
 36

4.4.2. Word Frequency Analysis

Based on all the coding steps, two phases of word frequency analysis are then conducted with
the help of Microsoft Excel. Top two or top three of each aspect from all interviews are selected
and analysed, which outcome is presented as the finding of new theory.

A. Phase 1 of Word Frequency Analysis

The first phase of word frequency analysis is performed by giving checklists to the categories in
the selective category in which interviewee are addressing. In this case, the author used
Microsoft Excel. It is done to see the categories that are encompassed by the most interviewee,
which are considered to represent most private construction companies in Indonesia. Table 4.9
is the result of phase one of word frequency analysis, specifically for closed innovation, and Table
4.10 for open innovation.
 37

Table 4.9 The result of Phase 1 of Word Frequency Analysis: Closed Innovation

IO- IO- IO- IO- IO- IO- IO- IO- IO- IO- IO- IO- IO-
No Aspects Closed Innovation 01 02 03 04 05 06 07 08 09 10 11 12 13
TOTAL
1 Differentiation • • • • • 5
2 Good Reputation • • • • 4
Benefits
3 Better Work Performance • • • • • • • 7
4 Improve Profit • 1
Willingness to treat their human
5 • 1
resource well
6 Driving Factors Globalisation • • • • • 5
7 Due to Issue occurring • • • • • 5
8 Helping the environment • 1
9 Lack of Ability and Knowledge • • • • • • • 7
10 Unnecessity • • • • • 5
11 Different Objectives • • 2
12 Underestimating • 1
13 Patent • • 2
14 Trust • 1
15 Barriers Time Constraint • • • 3
16 Cost Constraint • • • 3
17 Conservative Thinking • • • • 4
18 Risk • • • • • 5
19 Lack of Preparation • • • 3
20 Not having the R&D • • 2
21 Reducing Revenue • 1
 38

Table 4.10 The result of Phase 1 of Word Frequency Analysis: Open Innovation

IO- IO- IO- IO- IO- IO- IO- IO- IO- IO- IO- IO- IO-
No Aspects Open Innovation 01 02 03 04 05 06 07 08 09 10 11 12 13
TOTAL
1 Differentiation • • • 3
2 Better Work Performance • • 2
3 Using Other's Resources • • • 3
Wider area of innovation
4 Benefits • • • • • 5
including new point of view
5 Good Reputation • 1
6 Improve Profit • 1
7 Faster the innovation process • 1
8 Due to Issue Occurring • • • • 4
9 Lack of Resources • • • • • • • 7
10 Driving Factors Globalisation • • 2
11 Necessity • 1
12 Incentive • 1
13 Not having the R&D • • • • • • • 7
14 Unnecessity • • • • • • • • 8
Lack of Preparation and
15 • • • • • • • • 8
Resources
16 Conventional Thinking • • • • • • • • 8
17 Risk • • • • • 5
18 Time Constraint • • • • • 5
Barriers
19 Cost Constraint • • • • 4
20 Government Support/Incentive • 1
Different Interest between
21 • • • 3
institution collaborating
22 Lack of Knowledge • • • • • 5
23 Politic • 1
24 Patent • • • 3
 39

B. Phase 2 of Word Frequency Analysis

In phase 2 of the word frequency analysis, the result from the first phase of the word
frequency analysis is ordered from the most to the least to allow the clear result of which
categories are the benefit, driving factors, and barriers of the closed and open innovation
before the in-depth interpretation and discussion is conducted from the top two or top three
of each category. Figure 4.6 and Figure 4.7 present the result of the second phase of the word
frequency analysis in the context of closed innovation and open innovation, respectively.
 40

Closed Innovation in the Indonesia Private Construction Companies

Willingness to treat their human

resource well Good Reputation
Globalisation

Due to Issue Occurring Helping the environment Improve Profit Differentiation Better Work Performance

Number of interviewees 5 4 3 2 1 1 2 3 4 5 6 7 Number of interviewees

mentions the category Underestimating mentions the category
DRIVING FACTORS Trust BENEFITS
1 Reducing Revenue

Different Objectives
Patent

2 Not having the R&D

Time Constraint
Cost Constraint

3 Lack of Preparation

Top 2/Top 3 Benefits

Benefits
4 Conservative Thinking
Top 2/Top 3 Driving Factors
Unnecessity
Driving Factors
5 Risk
Top 2/Top 3 Barriers

Barriers

7 Lack of Ability and Knowledge

Number of interviewees
mentions the category

BARRIERS

Figure 4.6 The result of Phase 2 of Word Frequency Analysis: Closed Innovation
 41

Open Innovation in the Indonesia Private Construction Companies

Good Reputation
Improve Profit

Faster the Innovation Process

Necessity
Better Work Performance
Inccentive
Differentiation

Using other’s Wider Area of Innovation including

Lack of Resources Due to Issue Occurring Globalisation Resources New Point of View

Number of interviewees 7 6 5 4 3 2 1 1 2 3 4 5 Number of interviewees

mentions the category mentions the category
Government Support/Incentive
DRIVING FACTORS BENEFITS
1 Politic

Different Interest Between Institution Collaborating

3 Patent

4 Cost Constraint
Risk
Top 2/Top 3 Benefits
Time Constraint
Benefits Lack of Knowledge
5

Top 2/Top 3 Driving Factors

Driving Factors
6
Top 2/Top 3 Barriers

Barriers
7 Not having the R&D

Unnecessity
Lack of Preparation and Resources

8 Conservative Thinking
Number of interviewees
mentions the category

BARRIERS

Figure 4.7 The result of Phase 2 of Word Frequency Analysis: Open Innovation
 42

Discussion

Introduction
This chapter will be comprised of five elements as the discussion of this dissertation. The
first chapter covers research objective 1; determining the current adoption of inbound
open innovation, particularly in the construction industry. The study associated with
research objective 2 followed, which encompasses the practice of open innovation,
generally in Indonesia. The next chapter will specifically address research objective 3,
the practice of innovation that has been conducted in Indonesia private construction
company. The last section will explicitly address the practice of inbound open innovation
in Indonesia private construction company to satisfy the research objective 4.

Open Innovation in the Construction Industry

Open innovation seems to have not attracted the researchers to examine the practice
in the construction sector deeply. It is supported with the fact that there are only four
papers specifically discussing open innovation in civil engineering. Worsnop et al. (2016)
and Dodgson et al. (2015) discuss the practice of open innovation in the case of Crossrail
in London. Rose and Manley (2012) clarify the discussion of collaborative innovation in
terms of Australian road infrastructure projects. Kattaria et al. (2019) emphasise
building industry in Egypt, which performs open innovation. The few numbers of paper
are considered as interesting as all research is conducted in the different continent, even
though it has not been much highlighted by researchers.
The practice of open innovation in the construction industry is generally driven
through five factors (Rose and Manley, 2012; Gassman, 2006). Firstly, globalization
insists companies to develop their competitive advantage to be able to compete with
the national, international, and multinational companies and satisfy the construction
market. Secondly, by the fact that construction technologies have an advanced
development, open innovation allows the company to utilise the technologies provided
by external sources from the various backgrounds and disciplines. Thirdly, one
technology has often not fulfilled the requirement of the particular open innovation.
Therefore, technology fusion is considered as triggering companies to conduct open
innovation. Fourthly, companies often have a willingness to develop a new business
 43

model. Lastly, not only technology, the available knowledge regarding construction in
the environment is often beneficial for the companies to keep the companies’
sustainability.
However, examining deeply to each area of the construction industry, such as
Crossrail and building, open innovation driving factor is added differently. In the
Crossrail sector in London, the Crossrail management aims to create a safe workplace
by increasing health, safety, and environment (Worsnop et al., 2016). It might be raised
due to the companies’ consciousness that there is a high possibility of accidents, injuries,
and fatality in the construction megaproject. Hancock (2017) has informed that civil
engineering is being in the number 8 of the most dangerous jobs in Britain, while Smith
(2017) claims that construction is being the deadliest occupation in the UK. In the
building industry, which project is not as large as Crossrail, open innovation is conducted
due to client requirement (Kattaria et al., 2019). The priority for building construction is
different from the Crossrail infrastructure, which aims to increase the profit margin
through good reputation improvement. However, both industries have the intentions to
apply open innovation for preventing them from termination (Kattaria et al., 2019;
Worsnop et al., 2016). As the nature of the business, every company have an objective
to keep them survive, and open innovation is agreed to be one path for it.
Between all sectors, all agreed that the most beneficial alliances for producing an
effective and efficient open innovation comes from all supply chain members, research
institutions, and clients or users (Kattaria et al., 2019; Wornsnop et al., 2016; Dodgson
et al., 2015; Rose and Manley, 2012). All supply chain members include the contractors
itself, supplier, and any joint ventures or partners. Dodgson et al. (2015) mention that
to achieve the most effective open innovation, the best procurement system should be
chosen wisely. The system which could bring the supply chain members early to
generate the innovation idea should be selected. Moreover, the contractors tender is
not emphasising on the low cost, but on the ability to collaborate.
Companies often include research institutions such as universities and
laboratories which possess more in-depth knowledge and the more various equipment.
Kattaria et al. (2019) find that university has the most voted institutions that companies
will alliance within the context of open innovation. The other parties that are most likely
to be included are the clients and users since they are the market itself. Clients and users
 44

often have various requirements and expectations about the infrastructure. It should be
satisfied, as Worsnop et al. (2016) claims that they could bring new ideas from the
different perspectives and add more positive value to the infrastructure. It is, in Kattaria
et al. (2019) research, being the second most voted parties that is crucial to the
collaboration of innovation.
Most open innovation in the construction industry is conducted in the
management sector, while only a few open innovations are mentioned and captured to
the changes in the material or method sector. This issue is acknowledged by Rose and
Manley (2012) that there was no specific research associated with the practice of
product innovation on the infrastructure project. The logic of this idea derives since, in
tender and contract, materials and techniques have often included. It means that the
written materials and method must be fixed to achieve the required and calculated time,
cost, and quality. Therefore, there is an only small room for the contractor to do the
closed and open innovation. However, if any issue is occurring on the site, which
encourages them to perform open innovation, the permit process might be timely or
even costly (Worsnop et al., 2016). Henceforth, contractors are often learning from the
experience and create an open innovation regarding materials and methods afterwards
for the further projects instead of applying a collaborative innovation during the issue
occurrence.
Dodgson et al. (2015) have explicitly mentioned that in the innovation regarding
transportation, there is no template measurement for assessing whether an innovation
is succeeded or not. This unclear assessment measurement might apply to another
sector of the construction industry since every project has its unique factors and
variables. Moreover, different people have a different assessment rubric to declare
success in the innovation, including open innovation. It involves many parties, and each
might have a different perspective. However, the rate of open innovation success is
affected by three main factors which should exist (Rose and Manley, 2012). Every
company should possess its governance approach and absorptive capacity, which
determines their innovative capabilities. Besides, even though external knowledge is
often available outside the company, but the companies need to have an understanding
of the innovation that they are about to create and most importantly, on how to
collaborate for innovation.
 45

Open Innovation in Indonesia

The idea of open innovation, surprisingly, has a massive rapid growth since it was firstly
established in 2003. It has reached to many sectors and has attained many developed
and developing countries, including Indonesia. There are a number of comprehensive
investigations which have been discussed in many industries, such as humanitarian
sector regarding flood resilience (Goeldner et al., 2017), restaurants and café business
(Utami et al., 2017), manufacturing companies (Hartono and Kusumawardhani, 2018;
Ariana and Asmara, 2018), and logistic companies (Erna et al., 2019). Those studies
increase the belief that open innovation is currently has been implemented by several
Indonesian companies and has been acknowledged as essential for their companies for
various reasons. There are several features of Indonesia associated with the
implementation of open innovation.
The trend of open innovation is not followed by the existence of R&D activities
among companies in which companies are rarely invested in (Ariana and Asmara, 2018;
Hartono and Kusumawardhani, 2018). It causes the culture of dependency among
Indonesia's company, where they are relying on technologies from developed countries
and inputs from the external environment (Ariana and Asmara, 2018). Furthermore,
companies are often lacking innovation capabilities due to the inactive R&D division. As
its name, R&D does not only have a task to continue doing research but also improve
the companies' capacity and performance to prepare the company in doing innovative
collaboration. Companies' abilities, which are required to achieve a success innovation,
are enhancing absorptive capacity, knowledge, and corporate governance (Rose and
Manley, 2012).
Even though Indonesia's companies are conducting open innovation, some other
companies might reluctant to undertake them because of some barriers. The financial
issue is being the first barrier to open innovation in Indonesia (Utami et al., 2017;
Hartono and Kusumawardhani, 2018). As a developing country, there are a lot of micros,
small, and medium companies which just suddenly appeared and vanished due to
bankrupt. Some people are trying to open a new business without preparing and
allocating some budget for innovation, which insists them to use the current technology.
Open innovation, indeed, requires some amount of money which is invested for a long-
 46

term benefit. Henceforth, that micro, small, and medium companies are often reluctant
to perform open innovation and work in their comfort zone.
Moreover, the risk is also being an obstacle of a company in doing open innovation
(Hartono and Kusumawardhani, 2018). Open innovation could result in an outcome
which is being a big step for a company for further activities. However, the bigger the
outcome, the more risk it is usually carried. If a company allocates a high percentage for
open innovation activity, and it is failed, the company could instantly bankrupt and
terminated. Therefore, open innovation should be started from something small, and
cost allocation for open innovation should be calculated carefully before creating a more
significant innovation.
Unlike open innovation in the global construction industry, the practice of open
innovation in Indonesia has several differences. Increasing performance through
product and service innovation is being a highlight in developing countries, particularly
in Indonesia (Utami et al., 2017). In the construction industry, it is translated into
material and method or technique. Indonesia companies tend to create a good
reputation toward the clients and increase their trustworthiness directly instead of
maximising their performance through management improvement and putting
attention to their workers' welfare. Moreover, the external party mostly comes from the
customers (Utami et al., 2017; Erna et al., 2019; Ariana and Asmara, 2018). Research
institutions, including universities, are not mentioned in the papers which discuss open
innovation in Indonesia. It might be due to the lack of R&D activities which has been
discussed previously. Collaborating with research institutions might require a long time
until the result is edible to be used, which is not having a direct correlation with
Indonesia companies’ perspective to prioritise client's satisfactory for a good reputation.

Innovation in Indonesia Private Construction Company

5.4.1. Barriers of Innovation
The flow of conducting the practice of innovation has not coincided with the increasing
trend of the construction company in Indonesia and the growing trend of infrastructure
development in Indonesia. It could be one reason that approximately 37,000 private
construction company in Indonesia is terminated from 2015 to 2018 because they do
not get any project (Uly, 2018). One rationale which causes this incident is because the
 47

private companies are considered as not capable of handling a large-scale project, which
one could be identified through lacking innovation (Afriyadi, 2019). Most respondents
indicate the absence of innovation in private construction companies in Indonesia is
because of lack of ability and knowledge and unnecessity.
There are two sources of ability that could be the obstacle of achieving innovation;
contractor and client. Client is often unfamiliar to innovation, which then afraid and
aware of applying something new. Therefore, they are often refused the innovation
proposed. The incapabilities of the contractor itself also arise due to two factors. Firstly,
the researcher is often too theoretical, which then the innovation is not applicable to
the site, as mentioned by IO-04 (Appendix 5) "We know that education in Indonesia is
too theoretical. It is so different from what is used in the site. […] (, while) self-taught
(people think more to) will be just as long as you can work." IO-05 (Appendix 5) adds "(In
innovation,) there is often a miss between planning and implementation, which means,
people who are designing it is not 100% looking at the site condition." The innovation
team in the construction company is often relying only on theory or experience, while it
should combine both ability and knowledge. It may raise because some labours in
Indonesia are not educated, proven that in 2016, approximately 40% workers in
Indonesia is elementary school graduated and not educated, and about 20% is junior
high school graduated (ILO, 2017). The condition is worsened with the fact that 63% of
workers in Indonesia occupy in the different industry to their educational background
(Majid, 2018).
Secondly, IO-09 (Appendix 5) encompasses the different interesting view of
knowledge, which states that "Human resource in Indonesia is paid daily. They are not
the worker of the company. They work for many constructions. If they come, they are
paid daily, not under the contract. Therefore, maybe, one day, someone is not coming,
unable to attend, changed with the other person which we do not know the capacity."
The continuously changing labour means that training is unable to be conducted, and it
is impossible to apply any effective and efficient innovation. It takes time for the
foreman to familiarise with the new worker's capacity and for the worker to adapt to
the project. Therefore, innovation is often failed to be applied with the condition of that
human resource.
 48

Some preliminary researchers have believed that education is crucial to achieve

effective and efficient innovation (Maruta, 2012; du Plessis, 2007). Education required
is not only regarding theoretical knowledge but also the understanding of how to apply
them on the construction site and its competency or management skill to perform the
innovations. Site management also takes a significant role in innovation success. IO-11
(Appendix 5) mentions that "It (The success of Inbound Open Innovation) depends on
the management on the site. When we have an idea, but the people on the site are not
doing it right, it can be unsuccessful too." Site management also takes a significant role
in innovation success. The knowledge of the innovation does not determine its success,
if all workers, from the highest to the lowest position, are incapable of implementing it.
It is more to the teamwork, which could pursue the innovation objective.
The other reason which causes companies reluctant to perform innovation is
unnecessity. These companies are giving attention to another aspect of the company,
which is believed to grant more benefit in a short time. About this, IO-10 (Appendix 5)
provides a statement "I think we should improve our performance first until one point
where we have improved enough. Then we will do the innovation afterwards." This
statement is a contrast to IO-10 first words which claims the importance of innovation
in productivity improvement and increasing profits and its innovation practice regarding
management. "Well, I think innovation can be said as important. However, in my opinion,
without innovation, a company can still survive. However, it is better if we do innovation,
can make this company better, or neater I can say. It can also improve profit." (IO-10).
This inconsistency may arise when the project manager has an instinct and a
responsibility to defend its company reputation. However, regarding the statement, it is
contradicting to Semuel et al. (2017) and Porter (1990), which acknowledged that
innovation is a sole approach for companies to improve their performance. Innovation
should be used as a tool for the company to produce a better work result rather than
avoiding it to pursue performance improvement through the other method.
Besides, IO-09 (Appendix 5) has another view of people's idea, which described
the misunderstanding of innovation, which mostly derived that resulted considering
innovation as unnecessity. "Now, many people are researching, even though some are
simple. However, the misunderstanding is then they are innovating not for innovation,
but the patent." This phrase describes the IO-10 statement that the objectives for
 49

innovation have now altered. Innovation, which should be a system for a company to
develop, is shifting to reputation. Some companies create many innovations for
achieving positive prestige, which indeed might benefit in the future. However, the
innovation is sometimes not useful for the company and only considering the theory,
not aspects on the site.

5.4.2. Benefits of Innovation

For some companies which perform innovation, they realise that it could keep the
company sustainable and benefits in the long-term. Innovation provides a beneficial
impact on the company indirectly and directly. Through innovation, the respondents
admit that their company indirectly generates better work performance through
productivity improvement. In the construction industry, productivity is associated with
the iron triangle, which demonstrates the connection between cost, time, and quality.
As mentioned by IO-08 (Appendix 5), "I think cost, time, and quality are connected, right.
So, we have to balance those three. Even if it is not going better, at least it is not going
worse. Alternatively, even if one aspect is going worse, at least it gives a positive side on
the other aspect. The most important is balance." Balancing the iron triangle is the
difficult task of innovation. When the innovation aims to increase one of the factors, it
should not jeopardise the other two factors, since one impacting directly and indirectly
to the other.
Innovation is acknowledged to be the sole factor which could impact a significant
improvement in company's performance only if it is successful (Kaliappen and Hilman,
2014; Bennett et al., 2014; Porter, 1990). Each industry and even each company have
different criteria for assessing innovation success. It depends on many factors, such as
its experience regarding innovation, the size of the company, and the size of the
innovation itself. However, it is emphasised by Cox et al. (2012), Maruta (2012), and
Slaughter (1998) that innovation is the efficient way to the long-term productivity
improvement while sacrificing the short-term resources.
Furthermore, innovation directly increases the company’s competitive advantage
through differentiation. Being different from the other company adds and significantly
enhances the value of the company itself. Differentiation, according to Slaughter (1998)
and Kotler and Amstrong (2003), is defined as the act of differentiating a company from
its competitor to distinguish itself from the competitor's offerings, which create a
 50

competitive advantage to its rival. IO-04 (Appendix 5) states that "the fewer people do,
[…] you will have less competitor." Some clients might have a special requirement which
not many companies able to satisfy them. Therefore, they tend to elect the contractors
based on the contractor's ability or capability to perform innovation. Moreover, IO-13
(Appendix 5) claims that "If it is a good innovation, the company can be more developed
than other company. Otherwise, it might reduce revenue," which match the Kaliappen
and Hilman (2014) idea which declare that the differentiation strategy success is related
to the company's innovation success.

5.4.3. Driving Factors of Innovation

Contrary to the companies which unwilling to conduct innovation, some
companies considered innovation as a necessity to clarify the issue occurring on the site
or satisfy the client requirement. Six companies interviewed has agreed that one factor
which insists them to innovate is when the problem suddenly emerge before or during
the construction. The problem could arise from all layer of the worker. For example, CO-
06 possesses a scheme called 'sumbang saran' to collect all the suggestion from all
people related to the project, include the labour. They believe that the site workers
understand the site more and have a more urgent issue to be raised. It could be an
essential finding in the company before filtering its urgency and needs. IO-06 (Appendix
5) states "we start from 'sumbang saran', gather an idea, and brainstorm. Regularly, we
ask people to give us a recommendation to what can be improved, and anything. It often
comes from the site. […]. Based on that, we choose some that can be applied." This
system requires full teamwork of all the workers in the company. Those who spend more
time in the site gives a recommendation, while those who work in the office and
research division filter, analyse, and create a more efficient and effective innovation.
The issue could arise before and during the construction from various sources,
namely from the workers and from the client. It is being agreed that client requirement
and solving issues occurring on the site has being the fundamental reason of why the
company should innovate (Ozorhon and Oral, 2017; Bygballe and Ingenmasson, 2014;
Klippel et al., 2008). Satisfying client requirement could result to company’s reputation
improvement for the purpose of the further job and the long-term benefit. One of
Indonesia innovation related to construction that has succeeded worldwide is called
'cakar ayam' (Berinovasi, 2017). This innovation emerges when a contractor is required
 51

to build electric towers on soft soil in a short duration of time. Therefore, this innovation
is created to solve the problem and meet the client requirement.
Moreover, an innovation which derives through an issue emerging on the site is
also applicable in the other country, such as Singapore and Bosnian-Herzegovinian. The
workers in a company in Singapore initiative developed the 3D printing technology to
be used on the site to reduce the possibility of accident and fatality (Tay et al., 2017).
Through 3D printing, the workers only need to check the 3D machinery and the picture
from the ground and increase the safety of their workplace. 3D printing has been
established since 1984 and currently has a rapid growth in many industries (Hager et al.,
2016). Furthermore, Bosnian-Herzegovinian's construction company are offered a
project from a client in the US (GCR, 2019). Having a client in the distance often raises
the new issues, such as time zone and communication problem, which could decrease
the profit. This company, therefore, encourages to develop software which could ease
the communication, which is called Bluebeam Revu. The success in this innovation is
resulting in increasing profit and simplifying the communication process between the
company in the Europe and the client in the United States.

Barriers of Inbound Open Innovation in Indonesia Private

Construction Company
The intention for those companies to do inbound open innovation is driven through two
sources; the obstacle of traditional innovation which compelled them to do inbound
open innovation and the other triggers which is not correlated to the closed innovation.
Companies are frequently reluctant to do innovation because they do not have
resources required, and it is costly to satisfy innovation precondition. Therefore, most
interviewees agree that inbound open innovation could tackle the issue of resources
deficiency in regular innovation, which include materials, equipment, and human
resources – including its knowledge and experience. According to IO-01 and IO-04
(Appendix 5), it is often not possible to buy the new equipment, materials, or train their
worker for conducting only particular research since it will be overpriced. A company
might possess one or two necessary resources for innovation while the other institution
might have the remaining resource required and agreed for collaboration.
 52

These findings surprisingly contrast to the existing theory that afcompanies that
only large company can compete and do innovation with their resources (Chesbrough,
2004). Based on the interview, the only large company interviewed is indeed done
numerous innovations. However, this company is also being one of the three companies
that were conducting inbound open innovation. This view is underpinned with the
research of Van de Vrande et al. (2009) which explains that small company should do
more inbound open innovation since they have less experience, less ability, and lack of
materials and equipment.
All small companies in this research have never done any inbound open
innovation. This disagreement raises because of the different opinion and thoughts of
Indonesia private construction company. IO-13 (Appendix 5) claims that "Maybe, if our
company has settled, we might do open innovation. However, before, we have to learn
how to do it, how to make a patent for that and so on since the innovation is owned by
a multi-company." The company needs to be very settled and well-prepared to do
inbound open innovation; otherwise, it might meet failure. However, there are several
researchers agreed that lack of resources is the crucial consideration which drives the
companies to conduct inbound open innovation. Therefore, companies are required to
exploit and maximise the ability and capability of their resources, locate the other
required resources, and exchange resources with the other institution to do the
innovation collaboration (Hitchen et al., 2017; Bravo et al., 2017; West and Gallagher,
2006).
The companies' desire in applying open inbound innovation could also come from
the other factors which are not related to the traditional innovation, such as dealing
with the issue occurring. Tay et al. (2017) belief that the construction industry is one
sector which has a low record of collaboration. However, there are often some problems
emerge on the site which they are unable to face and insist them to do the innovation
collaboration. It is supported by IO-12 (Appendix 5) statement. "Our intention to do
inbound open innovation is based on case or issue on the site." Unsurprisingly, Indonesia
is not the only country which will do inbound open innovation when there is an issue.
Ghana, the other developing country also adopted inbound open innovation when there
was a problem (Dansoh et al., 2017). A construction company in Ghana collaborated
 53

temporarily with university department and engineers from a local regulatory agency
due to crack in a pre-stress.
Not only the driving factor of inbound open innovation, which defines its necessity,
they realise its importance and long-term benefit, as IO-10 (Appendix 5) mention that
"I am quite interested in doing this open innovation because this innovation can give
positive impact and increase the profit that we get from this company." According to the
interviews, there are several advantages of applying inbound open innovation, such as
a wider area of innovation and a new point of view, differentiation, and a possibility of
using other's resources.
Through collaborative innovation, bringing the idea from the external
stakeholders onto the companies means that the innovation is not limited by only the
workers' knowledge, but also has a broader perspective. IO-03 and IO-05 (Appendix 5)
believe that inbound open innovation adds the value to the companies by bringing more
external stakeholders brains involved in formulating the innovation since external
stakeholders often come from different background and possessing a different
experience and knowledge. Furthermore, IO-09 (Appendix 5) claims that inbound open
innovation could tackle the barriers of traditional innovation, which thought that
innovation is often over practical or over theoretical. Through inbound open innovation,
for instance, with the university, companies could combine its knowledge and
experience from the site and universities knowledge regarding theories and ideas.
However, it also presents the misconception of Open Innovation which declares
that inbound open innovation is hard to be done since the company is often reluctant
to pay university research such as IO-09 (Appendix 5) statement that this collaborative
innovation should be more than paying university's research, and more to combine ideas
and resources. "For open innovation, I can think of the collaboration between university
and industry, and it has already existed from a long time, but there are not many
universities focus on it or industry that wants to pay the research. […] If we can
collaborate, it is good right since in the industry. We are talking about something real. I
need this, and I need that. However, in academic, people are usually doing basic
research. If the research is done based on the real situation and researched from the root
and basic by the university or other research centres, the result can be accounted for."
 54

As a broader perspective and area of innovation becomes the benefit of inbound

open innovation, it is also a challenge, which companies need to explore the sources of
innovation itself (West and Gallagher, 2006). Every company have different necessity
and importance to a particular innovation. They need to have an ability to seek the
external sources which could be applied by them, as mentioned by IO-01 (Appendix 5),
"even though we are doing innovation, we should not bring all innovations into the
company. We have to look at whether it matches our market or not." However, this
finding is linear to some research which has admitted that inbound open innovation
could generate a broader range and create a new perspective of innovation (Ikeda and
Marshall, 2016; Van de Vrande et al., 2009).
Similar to the traditional innovation, inbound open innovation also can add
another value associated with the differentiation. The differences resulted through
inbound open innovation could be more massive since wider perspective and deeper
knowledge could be engaged to perform the beneficial innovation with the expression
by IO-12 (Appendix 5) which says that "I can agree that it (inbound open innovation)
really differentiates the market since open innovation must be a large scale of
innovation." Differentiation value improvement will accentuate the company's strength,
which might enhance the company's reputation among the client and the other
construction company (Chesbrough et al., 2018; Kuwabara, 2016). Besides, as the
driving factor of why companies conduct inbound open innovation, it is also the benefit
to the company. The available external resources are being complementary to the
internal resources lacking. However, the company should show the ability to locate
those required resources.
However, even though the practice of inbound open innovation is acknowledged
as crucial, some companies are unwilling to perform it. Several barriers are identified in
this study through the interviews, which will be addressed; unnecessity, conventional
thinking, not having the R&D, and lack of resources.

5.5.1. Unnecessity
The necessity of inbound open innovation is nowadays a controversy among companies
in Indonesia. While some companies considered inbound open innovation as crucial,
some other companies believe that it is superfluous. The argument which underlines the
differences in this viewpoint vary to one and another company. IO-01 (Appendix 5)
 55

claims that "I think open innovation that I will do will give a big step for my company
instead of the general innovation since when we collaborate with the other institution."
Therefore, it is considered crucial to collaborate with the other institution, particularly
associated with innovation. Inbound open innovation could encourage a company to
achieve more significant innovation through knowledge exchange, utilising the worker
whose skills have been maximised through previous innovation, and other factors.
However, there are also several companies which opine differently. They disagree
that the concept of open innovation is essential for the company to conduct since other
aspects are more appealing to be undertaken. Some companies interviewed claim that
there are various features of the company that is more important to pursue the
company objective. They view that the rapid approach to achieve substantial profit is to
perform some action which requires a small amount of money, such IO-03 (Appendix 5)
mentions "Maybe because we think more about how, not only us but for most of the
company, how to find a profit with less cost." Furthermore, IO-04 (Appendix 5) declares
the opinion of why they think inbound open innovation is unnecessary that focusing on
the in-house innovation is more important. "I think we want to focus on our honeycomb
core wall and other material first (Closed innovation which CO-04 is currently developing)
[…] (, because) innovation in finding something new is very risky." The perspective of
inbound open innovation necessity could be affected through various factors, one of
which is its priority in performing inbound open innovation.
This argument is not only occurring in Indonesia private construction company
since practitioners are also addressing this issue. The view of IO-01, which considered
inbound open innovation as necessity is underpinned by Szymańska (2016) which
believes that it is crucial to all companies. It is vital not only to the large company but
also to the small and medium companies, which has been mentioned previously that
small companies should do more inbound open innovation rather than large companies
(Van de Vrande et al., 2009 and Chesbrough, 2004). Even all companies should do
inbound open innovation since although it is costly and oblige a ton of requirement to
be succeeded. The company will acquire a significant benefit in the future. However, this
perspective is also agreed by the other researcher, which states that regular innovation
is generating more benefit to the company rather than open innovation (Bygballe and
Ingenmasson, 2014). It happens because the major control is in the company. It is
 56

translated that the company is the only institution which could recognise whether this
innovation will be a success or not and possessing the ability to drive the direction of
the innovation. Nevertheless, this contentious belief is being the barriers that are
encompassed by most companies in Indonesia through this research.

5.5.2. Conservative Thinking

As IO-01 (Appendix 5) has mentioned that inbound open innovation will be a stepping
stone for the future of the company, companies itself must be ready for changes while
doing innovation and afterwards. However, many companies are reluctant to change for
collaborative innovation, while some companies are preventing changing but still doing
open innovation, which is being the fundamental reason for its unsuccessful. In adopting
inbound open innovation, a company must realise the importance of organisational
culture, which define by Szymańska (2016, p. 144) as "a common set of beliefs, values,
norms, and customs that control the behaviour of members of the organisation." People
who are comprised of 'members of the organisation' are all workers in the institution
from the highest to the lowest position.
IO-08, IO-10, and IO-12 (Appendix 5) agree that inbound open innovation could
only be succeeded when all people in the companies are willing to change the
entrenched habit and to have a mindset of being open to the external stakeholders,
which is also supported by Mergel's (2018) research. The worker in the low position is
often rejecting, one reason is mentioned by IO-08 (Appendix 5) that “Maybe the worker
in our company is afraid to be fired. That is the way they are thinking. ‘Oh! We do not
need them anymore. We can collaborate with other company to get human resource.’.”
Moreover, the worse finding is when IO-04 (Appendix 5) states that reputation plays an
essential role in organisational culture and conventional thinking. "We are not like those
large-sized company which can easily make the innovation, easily promote it, and easily
sell it. Our name is not as big as them." It inhibits companies to innovate since they think
that large companies could smoothly conduct innovation, while a small and medium-
sized company could not.
Inbound open innovation is the idea that is not only regarding the action of
utilising external resources and knowledge, but also encountering the changes that
should occur before, during, and after the innovation is conducted. This statement has
been acknowledged that a company must be willing to change in order to achieve the
 57

collaborative innovation success (Szymańska, 2016; Mortara et al., 2009; West and
Gallagher, 2006). All of the changes that might appear should be forecasted at the
outset, as well as risk, for its best and worst conditions (Szymańska, 2016). This
adjustment could generate either a positive or negative impact depending on the
companies' attitude towards the emerging conditions due to collaborative innovation.
According to IO-01 (Appendix 5), discussing changes and inbound open innovation
with a company which senior management are advanced in age is fruitless since they
are mostly close-minded. "Yes. However, if the owner is an old man, I do not think so.
For example, a construction company whose owner is our senior, civil engineering, class
of the 1960s or the 1970s, and they are a director in the famous construction company
in Indonesia. It is impossible to tell them." This statement might be genuine with the fact
that 47.4% of Indonesia workers is over 60 years old or those who are in the retirement
age (Kertiyasa, 2015). However, this word is denied by Moen et al. (2016), which stated
that the age of a worker is not related to the willingness of behaviour changing. Kunze
et al. (2013) add that younger employee is more resistant to accepting changes than the
older worker. This argument might be different between one and another country, most
likely regarding developing and developed country. Most companies in the developing
country do not have a sense of improving their competitive advantage since they are
more convenient to 'play' in their safe zone.

5.5.3. Not having the R&D

This finding is surprising when companies do not address R&D as essential for achieving
closed innovation, but it is in the top three reasons why companies do not conduct
inbound open innovation. 7 out of 10 companies agree that R&D division is the
requirement to pursue the inbound open innovation success. Most private construction
companies in Indonesia have a narrow view of research and development purpose. IO-
05, IO-09, and IO-10 (Appendix 5) declare that they are unwilling to do inbound open
innovation since they have no time; therefore, they claim that R&D must exist in order
to give them time for doing the research. It is being a prove that these companies are
aware only on short-term benefit. The attitude of establishing R&D should not only give
time for the innovation itself but also to the company's development. Therefore, these
companies' disbelief of the R&D necessity raises the intention of not innovating with the
external stakeholders.
 58

The necessity of R&D should be observed from the broader point of view, which is
being the factors of assuring the success of inbound open innovation. Those elements
are developing company’s capacity (Huizingh, 2011; Dahlander and Gann, 2010), value-
added (Vieira et al., 2018), and the growth of company’s absorptive capacity (Dahlander
and Gann, 2010). R&D, as its name, has a dual function for researching and for the
company’s development. R&D should also support company in conducting inbound
open innovation by being complementary to the company's openness to external idea
and external knowledge. It is acknowledged that particular external idea cannot be
substituted to internal R&D (Huizingh, 2011), while it should be integrated within to gain
the positive benefit from external sources (Kattaria et al., 2019; Ceccagnoli et al., 2010).
Moreover, by maximising company’s capabilities, it will captivate other institutions or
expertise attraction to do the collaborative innovation or being a 'ticket of admission'
for a promising partner (Dahlander and Gann, 2010).
Through R&D, the company’s value can enhance, particularly since technology is
growing rapidly in this industry 4.0 environment (Vieira et al., 2018). This technological
advancement insists companies, not only in the developing country but also to keep
growing for preventing termination. In this circumstance, R&D is a key success for a
company, and a country to compete with the multinational company which has invaded
the country speedily. R&D should keep developing to add the company's value by
creating particular innovation, particularly inbound open innovation. Furthermore,
absorptive capacity, as the element of inbound open innovation could be managed by
R&D. The division should be aware of every development in the market, which is the
outside companies' boundaries (Dahlander and Gann, 2010), and should carefully bring
the innovation that will be beneficial to the company. By this absorptive capacity, a
company could combine raw external idea and internal R&D ability to produce an
innovation that generates positive outcome to the companies. Therefore, companies
have to firstly receptive to the broader knowledge of R&D importance before
conducting inbound open innovation.

5.5.4. Lack of Preparation and Resources

Even though resources are being a fundamental reason of why companies apply inbound
open innovation, it is also one reason why company do not implement inbound open
innovation. Companies often possess insufficient resources, such as equipment,
 59

materials, and human resources. As IO-04 (Appendix 5) concompanies that "It is

sometimes hard for us to collaborate due to equipment limit. It is impossible for us to
always buy new equipment for particular research which we might not use again in the
future. If we are collaborating with those that we know has the machinery, we can just
collaborate with them. [...] Moreover, machines are not about just buying. There must
be someone who is being able to operate the machine. I think it is quite hard since
Indonesian is conventional people who sometimes reluctant to learn new things." They
lack equipment and human knowledge to be able to innovate with the external
stakeholders. Besides exploiting other resources and utilising internal resources,
companies need to maximise their capabilities. This factor is related to the existence of
the in-house R&D, which one purpose is to encourage the company’s ability.
Misunderstanding regarding inbound open innovation often occurs since the idea
of open innovation in Indonesia, particularly in the construction industry. IO-01
(Appendix 5) assume that attending a seminar and applying them is one of the forms of
collaborating with expertise regarding innovation, while it is closed innovation if the
seminar's outcome is applied. "One of my friend’s innovation is making a seminar or
short course, which is hosted by his research and development team. They ask the other
friend to teach them." IO-03 and IO-09 also have the same misconception regarding this.
It is proof that a company lacks knowledge regarding inbound open innovation.
Additionally, preparation should not come only from the companies, but also from the
market. Some Indonesian are often narrow-minded, which they do not appreciate
innovation (Puspitarini, 2012). Another country has often acknowledged Indonesian
innovation, which is not being responded positively with Indonesian (Supriyanto,
2019). Therefore, Indonesia as a whole country must be firstly prepared for the
innovation that might give a positive impact for the future industry.
Van de Vrande et al. (2009) and Hoffman and Schlosser (2001) have agreed that
one barrier of inbound open innovation is lack of resources. However, they put a heavy
emphasis on cost and time as the resources since doing an inbound open innovation is
costly and requires much time before successfully established and applied. Companies
firstly need to locate beneficial resources and additional necessary resources. Building
trust between two institutions is followed, which might consume a longer time than the
process of innovation itself. Innovation does not instantly emerge, which needs analysis
 60

and a long process of research before it could be applied. Henceforth, both companies
need to prepare the time and cost for doing the inbound open innovation. Mortara et
al. (2009) add that inbound open innovation, indeed, does not require any skills.
Nonetheless, training is essential for preparing the company to conduct inbound open
innovation.
 61

Conclusion

Introduction
This chapter is divided into four features. It, firstly, provides a summary of the whole
research, which addressed each objective that has been mentioned in Chapter 1. Then,
limitations which aim to show the boundaries of research applicability is determined.
Thirdly, this research presents what concrete contribution could this dissertation give in
the construction company industry. Lastly, recommendations for applying inbound open
innovation and further research are provided to encourage the practitioners and
researchers to specifically discuss the topic of inbound open innovation more in-depth
or with a different variable.

Conclusions
While the research regarding inbound open innovation is scarce, which specifically
encompassing construction industry, this research attempts to fill that gap, which
focuses in Indonesia. Through this research, several interesting discoveries which are
and are not correlated and similar to the existing theories are found. It is proven that
not all previous research applies to a different variable, while the type of industry and
tradition as a country are two examples of the factors.
The first objective, to determine the current adoption of open innovation,
particularly in the construction industry, was analysed through literature review. There
might be many construction companies that have performed open innovation, but it has
not been attracted many researchers to address them deeply. However, road
infrastructure in Australia, Crossrail construction in London, and building industry in
Egypt have been proven to adopt open innovation which invites the research institutions
and users or clients as innovative collaboration partners. This practice of open
innovation is performed due to several factors; globalisation, utilising partners’
resources, and it acts as a new business model. Creating a safe workplace and client’s
requirements also often insist companies to adopt the practice of open innovation.
The second objective was also examined with the literature review, which has an
intention to identify Indonesia’s experience of open innovation. With the unfavourable
condition of Open Innovation practice in Indonesia, such as lacking innovation
 62

capabilities and having a culture of dependency, it is interesting that the practice of open
innovation has spread to various areas in Indonesia, namely humanitarian sector,
restaurant and café businesses, manufacturing companies, and logistic companies.
Therefore, Indonesia, as a developing country, often endured financial and risk barriers.
Those barriers might arise since Indonesia does not involve research institution, unlike
the practice of open innovation in the global construction industry. It only involves its
market as the alliance to create a product and service innovation.
Research objective 3, which goals to investigate the innovation practice in
Indonesia private construction company, is done using structured interview. With the
fact that 9 out of 13 companies which are refused to be respondent mentioned that they
are inexperienced in innovation, all construction companies interviewed have adopted
innovation. Their intention to perform innovation is driven by globalisation and solving
the issue occurrence while it also might improve the work performance. However, for
those who are reluctant to adopt them is because they think it is not necessary or they
have no ability and knowledge to perform innovation.
Research objective 4, which is analysing the barriers of inbound open innovation
in Indonesia’s private construction company, is conducted through structured interview
method. The practice of Inbound Open Innovation is hard to be tracked since no papers
have discussed this topic deeply. However, even though some respondents have
claimed that they have ever adopted Inbound Open Innovation, they thought that closed
innovation is still more beneficial to the companies. There are several elements of
inbound open innovation missing which generate the reluctance in implementing
inbound open innovation, such as unnecessity, conservative thinking, not having the
R&D, and lack of preparation and resources. It is indicated that the idea of inbound open
innovation has not fully understood in construction sector in Indonesia and the
companies has not aware of its importance.
The last objective is to propose the advice system for the development of inbound
open innovation in the private company of Indonesia construction industry to encourage
them in conducting inbound open innovation. It is done by analysing the condition of
Indonesia through structured interview. Associations which cover Indonesia Project
Management should host the educational training and launch the non-academic
magazines which discussing specifically inbound open innovation deeply and in general
 63

respectively. Moreover, Intermediaries and incentives from the government could also
strengthen the contractor company willingness to perform inbound open innovation.
Lastly, the education of inbound open innovation should also be taught as early as
possible. Universities should take consideration to discuss innovation or open
innovation in one of the modules.

Limitations
There are several limitations to this research validity that further research is then
required:
A. Geographically, it might be limited only in a big or main city in developing
countries. Since the companies interviewed are all based in Jakarta, Bandung,
and Tangerang as big cities, this research might not even cover all private
construction companies in smaller towns due to differences in culture and
perspective.
B. To the other sector, it might be applicable if they do not possess an association
which covers them even though there might be slight differences. However,
further research is still required, highlighting the other sector.

Contribution to Knowledge
This research might be beneficial for companies and further researcher in various
factors. Through this research, it is expected that the companies will conduct more
innovation and attempt the practice of inbound open innovation. This dissertation has
implicitly given an insight into what aspects they shouldt prepare for performing
innovation and inbound open innovation throughout its driving factors, benefits, and
barriers. Moreover, for the researcher, since there is no research regarding inbound
open innovation in construction companies in Indonesia, this dissertation is being a
pioneer to encourage Indonesian researchers to discuss a broader perspective or deeper
topic of the practice of inbound open innovation in the construction sector in Indonesia.
With the massive globalisation, the concept of inbound open innovation will be
beneficial in the future and might have a massive growth in several years ahead.
 64

Recommendation for applying Inbound Open Innovation

Some companies have a various reason that cause their unwillingness to perform
inbound open innovation, such as afraid that its barriers and risk inhibit them from
pursuing their objective. This statement comprehends to IO-02 (Appendix 5) phrase that
"Maybe, I will not do the outbound open innovation, but for the inbound open
innovation, I might do. Oh, but I do not think so. I will not collaborate with the other
stakeholder for innovation because my company is small." Small companies are often
considered to carry more risk in trying something new and instead pursuing their goal
and objectives with the less risky approach. As the findings have been discussed
previously that the companies are reluctant to achieve the benefit of inbound open
innovation due to its awareness of its barriers, the sense of necessity and consciousness
of inbound open innovation should be enhanced. Therefore, in order to enhance them
and achieve the success of inbound open innovation, followings are several
recommendations toward Indonesia Project Management Association, Indonesia
Government, and Indonesia Universities.

6.5.1. Toward Indonesia Project Management Association

Indonesia Project Management industry is covered by three associations which are not
related to one another; PII (Persatuan Insinyur Indonesia or The Institution of Engineers
Indonesia), LPJK (Lembaga Pengembangan Jasa Konstruksi), and IAMPI (Ikatan Ahli
Manajemen Proyek Indonesia or Indonesian Society of Project Management
Professionals). PII, which is established on 23 May 1952, is an engineering association
that is dealing with all industry of engineering, including civil engineering and project
management (PII, 2019). LPJK, which is a civil engineering association owned by the
government, is a civil engineering association that is dealing with all areas of civil
engineering, including project management (LPJK, 2018). IAMPI, which is established on
16 July 1999, is specifically cover project management industry in Indonesia (IAMPI,
n.d.). Those three independent project management associations might generate
confusion for the construction companies.
All Indonesia project management associations have a program of training which
is delivered through a different approach. PII owns national congress, professional
development courses, seminar and workshop, and competence training (PII, 2019). LPJK
owns SIBIMA, which provides construction distance learning to gain competence
 65

certification (SIBIMA, 2019). IAMPI owns national/international seminar, learning and

sharing PM, and newsletter and journal (IAMPI, n.d.). In order to enhance the
companies' interest about inbound open innovation, PII, LPJK, and IAMPI need to firstly
aware of its importance and host training about it specifically through an interactive
seminar or short course, to enhance the construction company's understanding of
inbound open innovation importance.
Magazine could be one effective mechanism for promoting inbound open
innovation to the civil engineering society. ANIMP, an Italian Civil Engineering Society,
publishes a non-academic magazine, which is called Impiantistica, to give education
regarding civil engineering to the practitioners (ANIMP, 2014). Institution of Civil
Engineering, which based in London, UK, also launches a non-academic magazine
digitally, which is called new civil engineer (Barney, 2015; NCE, 2019). The non-academic
magazine could be one effective approach to introduce the idea of inbound open
innovation since all practitioners and researchers could easily understand about the
topic discussed.

Between those three associations, only PII launch a weekly newsletter, which is
called engineering weekly. However, it stopped publishing in 2017. Recently, Indonesia
has only one civil engineering magazine, which is produced by the Faculty of Engineering
in Universitas Gajah Mada, called Clapeyron (Clapeyron Media, 2018). Indonesia project
management association should take the initiative to produce these types of magazines
for the practitioners and workers to give a broad picture of construction knowledge,
which could be beneficial for the future of civil engineering.

6.5.2. Toward Indonesia Government

Indonesia government should also take part in manifesting the success of inbound open
innovation in the construction industry and the other sectors. One method to be
involved in providing innovation intermediaries such as living lab to support inbound
open innovation. Gascó (2017, p. 90) defined innovation intermediaries as "external
organisations and individuals that support companies in their innovative activities by
gathering, developing, controlling and disseminating external knowledge by providing
various resources and regulating the innovation networks," which has a function for
connection, collaboration and support, and technological services. The intermediaries
have a role in bridging both institution and knowledge to create a network and market
 66

by exploiting the benefit of inbound open innovation and reducing the risk of both
parties. These innovation intermediaries will ease the practice of inbound open
innovation which companies might interest to perform.
The other approach for the government to encourage the companies for
conducting open innovation is supporting through incentives. IO-09 (Appendix 5)
presents advice for the government regarding tax relief, reflecting from Japan. "In Japan,
all contractors have a research centre. Why? Because they got an incentive, they got tax
relief. In Indonesia, we do not have that thing. The only incentive we got is only about
CSR. The company is asked to allocate the cost for CSR. Therefore, the company get tax
relief. So, CSR is a community service. The company is asked to make something for
social. However, for open innovation, it is still not existed yet. If the government make
the regulation about this, more company will do innovation for tax relief." The
government should give a reward for a company who achieve success in inbound open
innovation, such as tax relief. Specifically, maybe the government should create an
obligation for construction companies to own an R&D division and do innovation
regularly. On the one side, this recommendation might be unacceptable since the
companies are insisted to do the inbound open innovation or they are doing it not based
on the company's awareness. On the other side, it may gently increase the company's
consciousness of inbound open innovation importance for the future of their own
companies, which is expected to improve the company's willingness to conduct this.
Indeed, the government should also initially improve its patent service to apply this
recommendation.

6.5.3. Toward Indonesia Universities

Considering that inbound open innovation is crucial, education should be rooted early.
Universities in Indonesia should specifically assign the module regarding innovation, not
only for civil engineering student but also all majors and all faculties since it is useful for
all types of industries. In the future, civil engineering companies might do an innovative
collaboration with companies from other industries. It is interesting when inbound open
innovation and just the traditional innovations are the combinations and the most
applicable practice of several modules in the universities, but it is not highlighted as
necessary and rarely mentioned.
 67

Recommendations for Further Research

To satisfy the validity of this research in contributing to the knowledge gap, followings
are the recommendation for further research topic regarding Inbound open innovation
extracting from this research limitations.
A. The research of inbound open innovation should be conducted in other cities
and countries which have a different culture
B. Various industries are required to be researched to provide a more detailed
recommendation and advise system.
C. Small, medium, and large companies should be researched separately since they
often have different features.
 68

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 77

Appendices

Appendix 1: Ethic Form

Appendix 2: Risk Form
Appendix 3: Informed Consent Form
Appendix 4: Interview Question
Appendix 5: Interview Transcript
Appendix 6: The Result of Open Coding
Appendix 7: The Result of Axial Coding
Appendix 1: Ethic Form
 Ethics Approval Form
This form should be completed by the student and passed to the supervisor prior to a review
of the possible ethical implications of the proposed dissertation or project.

No primary data collection can be undertaken before the supervisor has approved the
plan.

If, following review of this form, amendments to the proposals are agreed to be necessary,
the student should provide the supervisor with an amended version for endorsement.

1. What are the objectives of the dissertation / research project?

Research Objective:

1. To determine the current adoption of inbound open innovation particularly in

construction industry
2. To investigate the practices in Indonesia is in regard to open innovation
3. To investigate how innovation practice in Indonesia private construction company is
4. To analyse the barriers of inbound open innovation in Indonesia’s private
construction company
5. To propose the advice system for the development of inbound open innovation in
private company of Indonesia construction industry

2. Does the research involve NHS patients, resources or staff? YES / NO (please circle).

If YES, it is likely that full ethical review must be obtained from the NHS process before
the research can start.

3. Do you intend to collect primary data from human subjects or data that are identifiable
with individuals? (This includes, for example, questionnaires and interviews.) YES / NO
(please circle)

If you do not intend to collect such primary data then please go to question 14.
 If you do intend to collect such primary data then please respond to ALL the questions
4 through 13. If you feel a question does not apply then please respond with n/a (for
not applicable).

4. What is the purpose of the primary data in the dissertation / research project?

To answer the research objective 3, research objective 4, and research objective 5

5. What is/are the survey population(s)?

Corporation’s board of directors, corporate officers, managers, or people in charge of

Innovation and/or open innovation from private construction company in Indonesia

6. How big is the sample for each of the survey populations and how was this sample
arrived at?

Approximately 15-20 people. It is decided from the pilot study on the previous paper
and MSc dissertation which always take approximately 12-20 interviewee for their
research.

7. How will respondents be selected and recruited?

Respondents are being invited to take part in this research through purposeful sampling
because they have a big role in the company’s development and they have a knowledge
about what you or your company has done in regard to innovation and open innovation.

8. What steps are proposed to ensure that the requirements of informed consent will be met
for those taking part in the research? If an Information Sheet for participants is to be used,
please attach it to this form. If not, please explain how you will be able to demonstrate
that informed consent has been gained from participants.

Informed consent document will be presented before the interview starts. The
interviewee has to sign on it as an agreement. The document both in English and Bahasa
is attached.

9. How will data be collected from each of the sample groups?

Data will be collected using the interview method

10. How will data be stored and what will happen to the data at the end of the research?

The data will be stored in the password-protected laptop and will use for dissertation
purpose only. The information recorded is confidential, and no one else except my
supervisor, Dr Giorgio Locatelli, will have access to the data. The data will be destroyed
within 6 months, at the end of the dissertation or when the dissertation has been
collected to the university

11. How will confidentiality be assured for respondents?

I will not be sharing information about the interviewee to anyone. The information that
I collect from this research project will be kept private. Any information about the
interviewee will have a code on it and the position instead of name. Only me know what
certain interviewee code is. Moreover, the name of the company will not be presented,
only the size of the company will be written. It will not be shared with or given to anyone
except my supervisor, Dr Giorgio Locatelli.

12. What steps are proposed to safeguard the anonymity of the respondents?

Respondents will be asked for consent that the interview will be recorded with a
Samsung voice recorded application in Samsung phone, and it is password-protected.
Then, they will be told that the data will be transferred and stored in password-
protected laptop and in the google drive. Moreover, it will be used for dissertation only.
And most importantly, it will not be uploaded to any platform. The interviewee name
and company will not be stated. It will only be coded, and no one knows about the code

13. Are there any risks (physical or other, including reputational) to respondents that may
result from taking part in this research? YES / NO (please circle).

If YES, please specify and state what measures are proposed to deal with these risks.

14. Are there any risks (physical or other, including reputational) to the researcher or to the
University that may result from conducting this research? YES / NO
15. (please circle).

f YES, please specify and state what measures are proposed to manage these risks.
 CHANGES TO ETHICS PERMISSION

VERSION: ____

Please describe the nature of the change and impact on ethics:

Please print the name of: I/We grant Ethical Approval

student supervisor
Signed:
(student) (supervisor)
Date Date

(please cut and paste the next section, together with the heading at the top of this page, as
many times as required)

VERSION: ____

Please describe the nature of the change and impact on ethics:

Please print the name of: I/We grant Ethical Approval

student supervisor
Signed:
(student) (supervisor)
Date Date
Appendix 2: Risk Form
 Fieldwork Assessment Form (High Risk Activities)

Fieldwork Project Details

Faculty Engineering/Civil Engineering/International Construction

Management and Engineering
School/Service

Location of Fieldwork Jakarta, Tangerang, and Bandung, Indonesia

Brief description of Fieldwork
activity and purpose
(Include address, area, and grid
reference and map where applicable).
This activity has a purpose to conduct the one on one
interview for postgraduate dissertation. The aim of my
dissertation is to investigate inbound open innovation
practices in Indonesia private construction company and
define guidelines to promote them

Fieldwork itinerary Date of conduction the interview: between 3 April 2019 –

21 April 2019
E.g. flight details, hotel address, down
time and personal time.

Home Address:
Jl. Gading Kusuma III GK 4 no. 6, Kelapa Gading, North
Jakarta, Jakarta, Indonesia

Flight Details:
Manchester-Singapore: Singapore Airlines 11.40 GMT –
07.40 GMT+8
Singapore-Jakarta: Singapore Airlines 09.25 GMT+8 –
10.10 GMT+7

Jakarta-Singapore: Singapore Airlines 20.15 GMT+7 –

23.05 GMT+8
Singapore-Manchester: Singapore Airlines 02.25 GMT+8 –
09.10 GMT

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University Travel Insurance
Policy Number

Organiser Details Contact details

Name, Email, Telephone

Fieldwork Activity Organiser / Name: Giorgio Locatelli

Course Leader
Email: G.Locatelli@leeds.ac.uk

Departmental Co-ordinator

Nature of visit
Size of Group, lone working, staff,
Postgraduate – Interview for dissertation
postgraduate, undergraduate.

Participant Details Contact details

Attach information as separate list if Name, Address, email, telephone, gender and next of kin contact details
required.

Name: Angelia Dharmady

Address: 80 Woodsley Road LS3 1DU, Leeds, West

Yorkshire, United Kingdom

Email: ml17a5d@leeds.ac.uk

Phone Number: +447427785685

Gender: Female

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 HAZARD IDENTIFICATION
Identify all hazards specific to fieldwork trip and activities, describe existing control measures and
identify any further measures required.
HAZARD(S) IDENTIFIED
Nature of the site
School, college, university, remote area,
laboratory, office, workshop, construction
site, farm, etc.
Interview will be conducted in the
office or in the site office, all in
Indonesia, interviewee’s home
country
Environmental conditions
Extremes of temperature, altitude,
exposure to sunlight, potential weather
conditions, tidal condition etc.
Average temperature: 25°C -
32°C in April – the period of
interview conducted
Fieldwork Assessment Form (high
Title:
risk)
CONTROL MEASURES
(e.g. alternative work methods, training, supervision,
protective equipment)
Both interviewee and interviewer will arrange the
most suitable time and place for time through
message, email, or WhatsApp
Local Hospital:
Mitra Keluarga Hospital – Jl. Raya Gading Kirana
No Kav. 2
Jakarta Hospital – Jl. Jend. Sudirman No. Kav. 49
Local Police Station:
Jl. Gading Indah Utara I No. 12A
Interviewee will carry an ID to prove that
researcher is truly University of Leeds student,
ethic form and risk assessment which has been
filled, and informed consent document
Interviewee is advised to:
• wear safety shoes and safety helmet if the
interview is taken place in construction site
even though it is in the site office.
• Bring umbrella and water-proof jacket in
case of heavy raining
• Use sunscreen to prevent burns
• Carry water to prevent hydration due to
high temperature
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Due to global warming, rain
sometimes falls even though it is
not raining season

No extreme sudden condition

predicted and ever happened in
Jakarta

Site specific conditions There is no extreme condition in the site which

E.g. cliffs, screes, bogs, featureless
landscapes, local endemic infectious
diseases, zoonoses etc.
Office: In a building
might give adverse effect to the interviewee.
However, if the interview is conducted in the
construction site, as has been mentioned in
environmental condition, interviewee have to wear
safety shoes and safety helmet to prevent
undesirable accident.

Site office: Construction site

Process As identified in Nature of site and site specific

conditions
Operating machinery, electrical
equipment, driving vehicles, handling or
working with animals etc.

Interviewing corporation’s board

of directors, corporate officers,
managers, or people in charge of
Innovation and/or open innovation
from private construction
company in Indonesia

Transport Train: The train that will be used is national

expressed, licensed public transport.
Mode of transport while on site, to and
from site, carriage of dangerous goods
etc.
Private Car: The travel speed will be around
Train to airport
30km/h and 40km/h and if it is possible, there will
also be someone join the travel

Plane to Jakarta (details has been

mentioned in fieldwork projects
details)

Private car while conduction the

interview

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Equipment
Manual handling risks, operation
of machinery, tools, use of specialist
equipment etc.
Only mobile phone used for
recording. It is possible to be
stolen.
There might be some machineries
in the construction site such as
tower crane
Violence
Potential for violence in location, political
and social unrest; against participants
(previous incidents etc.).
Crime: “The U.S. Department of
State has assessed Jakarta as
being a HIGH-threat location for
crime directed at or affecting
official U.S. government interest”
(https://bit.ly/2TpVQkx)
Political Issue: There will be a
president election in Indonesia on
17 April 2019 which Indonesia
might not be in a very safe
situation afterwards especially for
some races
Cultural Considerations
Specific to the activity or participants.
There is no cultural issue since
interview is taken in the home city
Individual(s)
Medical condition(s), young,
inexperienced, disabilities etc.
Fieldwork Assessment Form (high
Title:
risk)
Mobile Phone: Interviewee will also write the
interview result in the note in order to prepare if
the phone is stolen. Mobile phone is not left
unattended or displayed in public areas where it
may attract theft
On-site equipment: Interview will be done in a
distant place of the equipment to avoid accident
because of the machinery.
The equipment is battery-powered and low voltage
to avoid electric shock
Crime:
• Interviewee are aware to go to the high-
crime area
(Interviewee will travel with
• Interviewee should aware to their own
belongings
• Mobile phone is not left unattended or
displayed in public areas where it may
attract theft
• Always check on the closest police station
before the interview is conducted
Political issue:
• Always check on the closest police station
before the interview is conducted
• Make few nearby agreements to the home
address after 17 April 2019 to avoid
undesired things in case there is a riot in
Jakarta
There is no cultural issue since interview is taken
in the home country
During the date, time, and location arrangement,
interviewer has already contacted the person that
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Some participants might not is going to be interviewed, so the possibility of
speak Bahasa or English – only different language can be mitigated
local language

Interviewee will test and try the questions for many

Interviewer is inexperienced in times to make sure that everything goes well
taking interview

Work Pattern There will be an agreement for both parties about

the date and time which are best for both
Time and location e.g. shift work, work at
night.

All interviews will be done in the

weekdays work hour between
9am to 5pm

Permissions Required No permission is required because my passport is

Indonesia passport
Contact details, visas, and letters of
permission, restrictions and other details
of permissions.

No permission is required
because my passport is Indonesia
passport

Other Specific Risk N/A

Assessments
E.g. COSHH, Manual Handling, Lone
Working if so what is identified in these
assessments? Are there training
requirements? (Cross reference where
appropriate).

N/A

Health Questionnaire No health questionnaire required. If some medical

Completed issue happens, I could go to nearest local hospital
Is it required and has it been completed,
who by and where is it recorded?

Health Surveillance Required No health questionnaire required. If some medical

issue happens, I could go to nearest local hospital
Is it required and has it been completed,
who by and recorded?

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Vaccinations Required All vaccinations in Indonesia has been taken
Obtained and certificate where
applicable.

All vaccinations in Indonesia has

been taken

First Aid Provision If some medical issue happens, I could go to

nearest local hospital
Requirement for first aid or specialist first
aid equipment, access to medical
equipment and hospitals.

If some medical issue happens, I

could go to nearest local hospital

Additional Supporting Information

Pre-departure Briefing There is no pre-departure briefing
Carried out and attended.

Training All participants are briefed in interviewing technique

Identify level and extent of information;
instruction and training required
consider experience of workers, details Course leader and designated first aiders have
of relevant training. appropriate up to date certificate
Communication

Those being interviewed are chosen as can speak

Inappropriate interview English or Bahasa
technique causing offense or
misunderstanding
Interviewee has learned the interview technique

FCO advice Taken from FCO advice March 2019

Include current FCO advice for travel to https://bit.ly/1qvlXFu
the area where applicable.
https://bit.ly/2OfRVoN
https://bit.ly/2JvpVzI]

Overview:

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 • Stay 3 to 7 km away from any active
volcanoes in Indonesia, some can erupt with
little and no warning
• Terrorists are very likely to try to carry out
attacks in Indonesia
• Indonesia is having a risk of Zika Virus
transmission

In Detail: Safety and Security

• Crime:
• Street crime and pickpocketing in busy
tourist area
• Credit Card Fraud
• Thieves in public transport
• Methanol Poisoning: some alcoholic drinks
contaminated with methanol which cause
death
• Local Travel: use reliable and reputable
guide for any adventure trips
• Road Travel:
• Traffic discipline is very poor, consider
employing a private driver or hiring a car
with a driver. Make sure you wear a
helmet if you’re riding a motorbike or
moped
• If you’re involved in an accident or
breakdown, make sure someone
remains with your vehicle.
• Overall political situation is stable but
elections, external developments, etc can
trigger public protests or unrest. It might turn
violent with little notice

In Detail: Local Laws and Customs

• Respect local traditions, customs, laws, and

religions at all times and be aware of your
actions to ensure that they do not offend,
especially during the holy month of
Ramadan or if you intend to visit religious
areas. Ensure that you wear appropriate
clothing while visiting religious areas or sites
• Do not get involved with illegal drugs
• It is illegal to buy, sell, kill, or capture any
protected wild animal or trade its part without
a license
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Supervision
Identify level of supervision required
e.g. full time, Periodic telephone/radio
contact.
• Gambling is illegal in Indonesia
• You must be able to show your valid travel
document or stay permit at any time when
required to do so by an active immigration
officer
N/A

N/A

Emergency Plan Medical Emergency: Go to the nearest hospital

Consider and identify the plans you Crime: Go to the nearest police station
may need to have in place in the event
of emergency e.g. medical emergency.

Other Controls N/A

E.g. background checks for site visits,
embassy registration.

N/A

Identify Persons at Risk N/A

This may include more individuals than
the fieldwork participants e.g. other
employees of partner organisations.

Copy of other Organisation’s risk

assessment attached?

N/A

Additional Information N/A

Relevant to the one working activity
including existing control measures;
information instruction and training
received, supervision, security,
increased lighting, emergency
procedures, access to potable water
etc.

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Appendix 3: Informed Consent Form
 Informed Consent Form

[This informed consent form is for those who I have asked to be my dissertation interviewee.]

Information Sheet
Introduction
My name is Angelia Dharmady, a student in University of Leeds, taking postgraduate programme,
majoring International Construction Management and Engineering. I am doing a dissertation which
discusses about Open Innovation which is a very beneficial idea, but it has just been established recently
in 2003. I am going to invite you to be the part of my dissertation. You could decide the time you will
participate in the dissertation. Before you decide, you can talk to anyone you feel comfortable with to
discuss about the dissertation.
This consent form may contain words that you do not understand. Please feel free to ask me if you have
question.

Purpose of the research

As has been stated, Open Innovation is relatively a new word for the involvement external stakeholder
to produce an outcome and combine them with the internal stakeholder’s knowledge or idea. It could
be flows either internally or externally. Through several research which has been done outside or in
Indonesia, it gives positive impact to several aspects such as relationship tighten, better quality product,
and many more. However, unsurprisingly, there is still a knowledge gap of Open Innovation in
Indonesia construction company. Narrowly, my dissertation will focus on private company since
interestingly, most Indonesia private construction company has no R&D division which becomes an
umbrella for any innovations. Therefore, my dissertation has an aim to investigate Inbound Open
Innovation practices in Indonesia private construction company and define guidelines to promote them.

Research Objective
The following are my research objectives:
6. To determine the current adoption of inbound open innovation particularly in the construction
industry;
7. To identify Indonesia’s experience of open innovation;
8. To investigate the innovation practice in Indonesia private construction company;
9. To analyse the barriers of inbound open innovation in Indonesia’s private construction
company;
10. To propose the advice system for the development of inbound open innovation in private
company of Indonesia construction industry.

Participant Selection

Page 1 of 8
You are being invited to take part in this research because I feel that you might have a big role in the
company’s development, and you might have a knowledge about what you or your company has done
in regard to innovation and open innovation.

Voluntary Participation
The choice that you make will have no bearing on your job or on any work-related evaluations or
reports. You may change your mind later and stop participating even if you agreed earlier

Procedures
I am asking you to help me with my research on open innovation. We are inviting you to take part in
this research project. If you accept, you will be asked to participate in an interview with me.
During the interview, I will sit down with you. If it is better for you, the interview can take place in
your home or a friend’s home. If you do not wish to answer any of the questions during the interview,
you may say so and the interviewer will move on to the next question. No one else but me will be
present unless you would like someone else to be there. The information recorded is confidential, and
no one else except my supervisor, Dr Giorgio Locatelli, will access to the information documented
during your interview. The entire interview will be recorded through phone and no one will be identified
by name on the recording data. The data will be stored in the password-protected laptop and will use
for dissertation purpose only. The information recorded is confidential, and no one else except my
supervisor, Dr Giorgio Locatelli, will have access to the data. The data will be deleted in September,
once the dissertation has been collected to the university.

Duration
Interview will be done once, and the duration of the interview will be approximately 2 hours. However,
there might be an additional in-phone interview if there is a lack of data.

Risks
If the discussion is on sensitive and personal issues, then there will be the introduction such as
following:
“I am asking you to share with me some very personal and confidential information, and you may feel
uncomfortable talking about some of the topics. You do not have to answer any question or take part in
the interview if you do not wish to do so, and that is also fine. You do not have to give me any reason
for not responding to any question, or for refusing to take part in the interview.”

Benefits
There will be no direct benefit to you, but your participation is likely to help me find out more about
the practice of Inbound Open Innovation in Indonesia private construction company.

Reimbursement

Page 2 of 8
You will not be provided any incentive to take part in this research

Confidentiality
I will not be sharing information about you to anyone. The information that I collect from this research
project will be kept private. Any information about you will have a code on it and your position instead
of your name. Only me know what your code is. Moreover, the name of your company will not be
presented, only the size of the company will be written. It will not be shared with or given to anyone
except my supervisor, Dr Giorgio Locatelli.

Sharing the Results

Nothing that you tell me today will be shared with anybody, and nothing will be attributed to you by
name and your company. The knowledge that we get from this research will be shared with you and
your company before it is collected to the university. Each participant will receive a summary of the
results.

Right to Refuse or Withdraw

You do not have to take part in this research if you do not wish to do so and choosing to participate will
not affect your job or job-related evaluations in any way. You may stop participating in the interview
at any time that you wish without your job being affected. I will give you an opportunity at the end of
the interview to review your remarks, and you can ask to modify or remove portions of those, if you do
not agree with my notes or if I did not understand you correctly.

Who to Contact
If you have any questions, you can ask me now or later. If you wish to ask question later, you may
contact me: Angelia Dhamady, phone: +447427785685 or email: ml17a5d@leeds.ac.uk

Page 3 of 8
 Surat Izin Wawancara

[Surat izin wawancara ini ditujukan kepada mereka yang sudah pernah saya tanya untuk
menjadi narasumber thesis saya]

Lembar Informasi
Pengantar
Nama saya Angelia Dharmady, mahasiswa di University of Leeds, mengambil program S2 dengan
jurusan International Construction Management and Engineering. Saat ini, saya sedang melakukan
thesis dengan tema Open Innovation atau inovasi terbuka yang sangat bermanfaat, namun gagasan
tersebut baru dirilis belakangan ini tahun 2003. Saya hendak mengajak anda untuk menjadi bagian
dari thesis saya. Anda data menentukan waktu kapan anda akan berpartisipasi pada disertasi saya.
Sebelum anda memulai, anda dapat terlebih dahulu berbicara dengan siapapun yang anda merasa
nyaman untuk berdiskusi tentang topik disertasi saya.
Surat perizinan ini mungkin berisi kata-kata yang anda tidak mengerti. Oleh karena itu, anda
dipersilahkan untuk bertanya jika terdapat pertanyaan.

Kegunaan dari penelitian

Seperti yang sudah disebutkan, inovasi terbuka secara relative merupakan sebuah kata baru yang
menggambarkan mengenai keterlibatan pemangku kepentingan yang berasal dari luar perusahaan
untuk menghasilkan produk tertentu dan digabungkan dengan pengetahuan dan ide dari pemangku
kepentingan yang berasal dari dalam perusahaan. Hal tersebut terjadi baik ke dalam dan luar
perusahaan. Melalui beberapa penelitian yang sudah dilakukan di luar atau di Indonesia, inovasi
terbuka memberikan dampak positif terhadap beberapa aspek seperti hubungan yang semaking erat,
kualitas produk yang semakin baik, dan sebagainya. Namun, secara tidak mengejutkan, penelitian
mengenai Inovasi terbuka di perusahaan konstruksi di Indonesia belum diteliti. Lebih sempit lagi,
disertasi saya akan secara khusus membahas mengenai perusahaan swasta dikarenakan menariknya,
kebanyakan perusahaan konstruksi swasta di Indonesia tidak memiliki divisi pengembangan yang
seharusnya menjadi payung yang menangani segala macam inovasi. Oleh karena itu, disertasi saya
memiliki tujuan untuk menginvestigasi Adopsi Inbound Open Innovation – Inovasi terbuka ke arah
dalam – di perusahaan kosntruksi swasta di Indonesia dan membantu dalam menentukan pedoman
untuk mempromosikan konsep inovasi terbuka.

Tujuan Penelitian
Berikut ini adalah tujuan penelitian saya:
1. Untuk menentukan pengaplikasian dari Inbound Open Innovation terutama pada dunia
kosntruksi
2. Untuk menginvestigasi praktik inovasi di Indonesia
3. Untuk menginvestigasi bagaimana praktik inovasi pada perusahaan kontraktor swasta di
Indonesia
4. Untuk menganalisis hambatan dan menawarkan anjuran untuk pengembangan Inbound Open
Innovation pada perusahaan swasta di Indonesia yang bergerak di indsutri konstruksi

Page 5 of 8
Pemilihan Partisipan
Anda diajak untuk menjadi bagian dari penelitian ini karena saya merasa bahwa anda adalah seorang
yang memiliki peran penting pada perusahaan ini dan anda mungkin memiliki pengetahuan lebih
mengenai apa yang anda atau perusahaan anda lakukan mengenai inovasi dan inovasi terbuka

Partisipan Sukarela
Keputusan yang anda pilih tidak akan berpengaruh pada pekerjaan anda atau pada evaluasi atau
laporan terkait pekerjaan. Anda dapat berubah pikiran nanti dan berhenti berpartisipasi bahkan setelah
anda telah terlebih dahulu menyetujuinya.

Prosedur
Saya mengajak anda untuk membantu saya pada penelitian saya mengenai inovasi terbuka. Saya
mengajak anda untuk mengambil bagian dalam thesis saya ini. Jika anda menyetujuinya, anda akan
diminta untuk berpartisipasi dalam wawancara dengan saya.
Pada saat wawancara, saya akan duduk dengan anda. Jika anda merasa lebih baik, wawancara dapat
dilakukan di rumah anda atau di rumah teman anda. Jika anda tidak berkenan untuk menjawab
pertanyaan tertentu dalam wawancara, anda dapat mengatakannya dan pewawancara akan beralih ke
pertanyaan berikutnya. Tidak akan ada yang datang pada wawancara ini kecuali anda ingin seseorang
untuk hadir pada wawancara ini. Informasi yang direkam bersifat rahasia, dan tidak ada orang lain
selain pembimbing thesis saya, Dr Giorgio Locatelli, akan mengakses informasi yang
didokumentasikan selama wawancara ini berlangsung. Seluruh interview akan direkam dengan
menggunakan telepon genggam dan tidak aka nada satu orang pun yang namanya akan teridentifikasi
pada data rekaman. Data akan disimpan pada laptop yang diproteksi oleh kata sandi dan hanya akan
digunakan untuk disertasi. Informasi yang terekam bersifat rahasia, dan tidak akan ada satu orang pun,
selain pembimbing thesis saya, Dr Giorgio Locatelli, dapat mengakses data tersebut. Data tersebut
akan dihapun pada bulan September, ketika disertasi saya sudah dikumpulkan ke universitas.

Durasi
Wawancara akan dilakukan sekali, dan durasi wawancara akan berlangsung sekitar 1.5 jam. Namun,
jika ada kekurangan data, maka kemungkinan akan dilaksanakan wawancara singkat melalui telepon.

Risiko
Jika diskusi mengarah pada permasalahan yang sensitif dan personal, maka aka nada pengantar di
bawah ini:
“Saya meminta izin kepada anda agar anda dapat membagikan beberapa informasi personal dan
sensitif anda dimana anda mungkin merasa tidak nyaman untuk membahas topik tersebut. Anda tidak
harus menjawab pertanyaan terhadap pertanyaan tersebut atau mengambil bagian dalam wawancara
ini jika anda merasa tidak ingin, dan hal tersebut tidak apa-apa. Anda tidak harus memberikan alasan
jika anda tidak berkenan untuk menjawab pertanyaan tersebut, atau untuk menolak untuk mengambil
bagian di dalam wawancara.”

Page 6 of 8
Keuntungan
Tidak aka nada manfaat secara langsung kepada anda dari penelitian ini, namun partisipasi anda
mungkin akan membantu saya dalam meneliti lebih lanjut tentang praktik Inbound Open Innovation
di perusahaan konstruksi swasta di Indonesia.

Timbal Balik
Anda tidak akan diberikan insentif untuk berpartisipasi dalam penelitian ini.

Kerahasiaan
Saya tidak akan membagikan informasi yang anda berikan kepada saya kepada siapapun. Informasi
yang saya kumpulkan untuk penelitian ini akan dijaga kerahasiaannya. Segala informasi mengenai
anda akan digantikan dengan kode dan jabatan anda. Hanya saya yang mengetahui berapa kode anda.
Terlebih lagi, nama dari perusahaan anda tidak akan ditampilkan, hanya ukuran perusahaan anda yang
akan ditulis. Informasi tersebut tidak akan disebarluaskan kepada siapapun kecuali kepada
pembimbing thesis saya, Dr Giorgio Locatelli.

Hasil Penelitian
Tidak akan ada informasi yang anda katakan kepada saya hari ini akan disebarkan kepada siapapun,
dan nama dan nama perusahaan anda tidak akan tercantum pada thesis saya. Pengetahuan yang saya
dapat dari penelitian ini akan saya bagikan dengan anda dan perusahaan anda sebelum thesis tersebut
dikumpulkan ke universitas. Setiap partisipan akan menerima konklusi dari hasil thesis saya.

Hak untuk Menolak atau Membatalkan

Anda tidak harus untuk menjadi bagian dari penelitian ini jika anda tidak ingin untuk melakukannya
dan memilih untuk berpartisipasi tidak akan mempengaruhi pekerjaan anda dalam keadaan apapun.
Anda mungkin berhenti berpartisipasi dalam menjadi narasumber dalam waktu kapanpun dan
pekerajaan anda tidak akan terpengaruh. Saya akan memberi kesempatan pada akhir wawancara
kepada anda untuk melihat kembali hasilnya dan anda dapat memodifikasi atau menghapus beberapa
bagian tersebut, jika anda tidak setuju dengan catatan saya atau jika saya tidak mengerti sepenuhnya.

Pihak yang dapat Dihubungi

Jika anda memiliki beberapa pertanyaan, anda dapat bertanya kepada saya sekarang atau nanti. Jika
anda ingin bertanya kepada saya nanti, anda dapat menghubungi saya: Angelia Dharmady, telepon:
+447427785685 atau email: ml17a5d@leeds.ac.uk

Page 7 of 8
Appendix 4: Interview Question
 What is your position in your company?

What is the grade of your company? Is it

include small, medium, or large company?

What is your opinion about Innovation?

Has your company done any innovation?

YES NO

Could you please tell me the example of

Does your company currently working on
the innovation that your company has
innovation?
done?
YES NO

Could you please tell me about the

Does it affect project s schedule (and its What is the reason that your company
innovation that your company is working
time completion if the project has done)? has not apply any innovation?
on?

How about cost? Does it end up over Do you think it will be produce a better Is there a division who is in charge of
budget or under budget? process or product? innovation?

YES-SPECIFIC DIVISION YES-NO SPECIFIC DIVISION

And regarding the quality, does it improve
the quality of the product? Please explain What is the task of NO Why is there no specific
briefly! Based on what do you assess that?
this division? division which handling
innovation?

So, do you consider it as successful or

unsuccessful?
Who is in charge of the
innovation?
I would like to ask whether you have a
(less successful or successful) experience
or not?

YES

Could you please tell me the experience?

NO
Why do you consider it as (less successful
or successful)?

What are the causes of its (less success or

success) compared to the previous
innovation?

Who is in charge on those innovation(s)?

NO SPECIFIC DIVISION

Why is there no specific division

SPECIFIC DIVISION
which handling innovation?

Have you ever heard about the term

Open Innovation ?
YES
NO

What do you know about open

innovation?

((Showing the video of open innovation

explanation))

After viewing the video, what is your

opinion about open innovation and
inbound innovation particularly compared
to regular innovation?

Has your company ever collaborate with

any external stakeholder and get idea for
innovation from them?

YES NO

Could you please tell me about the

What is the reason that your company
experience of it and who were you
has not apply any innovation?
collaborating with?

What triggers you to do Inbound Open Is there a division who is in charge of

Innovation? inbound open innovation?

YES-SPECIFIC DIVISION YES-NOT SPECIFIC DIVISION

Does it affect project s schedule (and its NO Who is in charge of

What is the task of this
time completion if the project has done)? inbound open
division?
innovation?

How about cost? Does it end up over Why is there no specific

budget or under budget? division which handling
open innovation?

And regarding the quality, does it improve

the quality of the product? Please explain What do you think is the benefit of
briefly! Inbound Open Innovation?

Why does your company is not

So, do you consider it as successful or
collaborating with external stakeholder
unsuccessful?
for innovation purpose? What are the
factors?

I would like to ask whether you have a

(less successful or successful) experience What do you think is the project manager
or not? capability which is important in applying
inbound open innovation?
YES
NO

Would your company apply inbound open

Could you please tell me the experience? innovation? Why?

Why do you consider it as (less successful

or successful)?

What are the causes of its (less success or

success) compared to the previous
innovation?

Is the person in charge of innovation in

Who is in charge of Inbound Open
charge of handling this Inbound Open NO
Innovation?
Innvoation?
YES

What do you think is the benefit of Why is there no specific division which
inbound open innovation? handling open innovation?

Why do you think the most private

company in construction sector in
Indonesia reluctant to apply inbound
open innovation? What are the factors?

What is the project manager capability

which is important in applying inbound
open innovation?

Would you recommend the other private

company in Indonesia construction
industry to apply inbound open
innovation?
Appendix 5: Interview Transcript
Interview Transcript with IO-01
INTRODUCTION
Q1. Introduction

Interviewer:
Good Morning Sir, thank you for your time and willingness to be the respondent for my interviewee.
So, in the beginning, I want to introduce myself. My name is Angelia. I am a postgraduate student
at the University of Leeds taking International Construction Management and Engineering
Programme. At this moment, I am doing a dissertation which discusses “Open Innovation”. Before
starts, I would like to ask you to read the Informed Consent Form to know your rights in this
interview, how this interview will be done, and what will happen after. The document will be given
in two languages, English and Bahasa, which two of them have the same information. After
agreeing, I hope that you sign on the form.

Interviewer:
Thank you, and this form is for you. Prior to start, I would like to ask for the consent for recording
this interview to avoid misconception while analysing this interview due to missing some important
details.

IO-01:
OK.

Interviewer:
If there is a question that you are not convenient, you can refuse not to answer. This interview is
only used for the dissertation and will not be published on any platform. It will also be written as
anonymous to mind the credential.

INDIVIDUAL AND COMPANY’S PROFILE

Q2. Individual and Company’s Profile

Interviewer:
As the beginning, I would like to ask what your position in your company is?

IO-01:
I am the CEO of this company.
Interviewer:
What is the grade of the company? Is it classified as large, medium, small, or micro company?

IO-01:
According to stocks and works, we are a medium-sized company even though I do not exactly know
how the other companies classified the size of their company. However, according to the association
that we follow, I can concompany that my company is a medium-sized company.

INNOVATION

Q3. Innovation Performance

Interviewer:
OK, now, for the first topic, I would like to talk about innovation in general. Innovation is generally
a new finding which is different from the existing. For example, if you want to build an earthquake
resistance building, if you usually use timber as the main material, maybe you can start using
bamboo, which is stronger than timber.

IO-01:
OK, OK.

Interviewer:
I would like to ask, what does “innovation” mean to you? What is your opinion about that? Is it
something important or maybe you have another opinion?

IO-01:
Companies do innovation to make their company survive. Our company, for instance, is now going to
its third year. I think we cannot always be stagnant with no innovation; otherwise, we will be
terminated in five years or maybe ten years, depends on natural selection. Therefore, innovation is
crucial to me. Innovation creates an additional value which differentiates us from the other
companies. We are keeping up with times, new things, new concept through innovation.

Interviewer:
So, you think that innovation is important to the company?
IO-01:
Very Important.

Interviewer:
Have you ever done any innovation in this company so far?

IO-01:
Hmm… That is a good question. There are two directors in this company, me and the other person.
We did innovation in the non-technical side, associated with the improvement of the management.
Recently, I saw my friends who work in the other company that some do not have a clear
organisational structure, and there is no clear division of tasks, while some others have. All of those
who do not have a clear organisational structure never have Research and development division. That
is what I concern of since we think, research and development is a division which supposedly
innovating. If we are comparing the construction industry and the other industry, we are far more
primitive. For example, looking at the bank, [Name of the Bank], then we compare to the other
industry like [Name of the company from the other industry]. They are really treating their human
resource well by doing coaching and meeting. Then, we reflected ourselves that we have never had a
meeting other than a technical meeting. That is the point when we thought we that we have to
innovate in human resource. We have to be opened to the worker. We conduct a weekly meeting,
and the most recent activity we have coaching. For the weekly meeting, we call our employees every
two weeks just to ask, ‘how are you?’ ‘what is happening?’ ‘what job are you doing this week?’ ‘do
you have any problem with the job?’, and so on. In that meeting, the employees are also allowed to
communicate their thoughts, such as ‘Sir, can I get a salary increase because I have never got one
before?’ That is the example of innovation that we have done. We know that we have to do this
because we see that construction company is rarely emphasis on those issue since they are too focus
on what they are doing, with the work. Furthermore, we are planning another innovation, which is a
website. I do not know whether it is innovation or not, but we want to make a website. We are going
to try to make an interactive website, not as simple and as strict as the other civil construction
company’s website. That is what we are planning.

Q4. Innovation Success Rate based on Iron Triangle

Interviewer:
So, with that innovation, the one that you did with human resource, does it improve project
schedule and maybe the completion date if the project has done?
IO-01:
I can say it should faster the project schedule because the worker’s productivity is increasing. We are
trying as good as we can through this innovation to improve the worker’s mood since this is related
to motivation. Nevertheless, the success rate of productivity’s enhancement is not only depending on
its method or people who are applying it, but also people who are being applied to. I think that they
must want to change because of the positive company’s cultural change is the combination of the
positive workers’ cultural change. What else we can do other than motivating them so that they can
work well, increase their productivity so that the project schedule can be finished faster. If the project
is done faster, everyone will be happy. We are happy, the client is happy, the worker might be happy
too. However, we should remember that it should not be jeopardised the quality.

Interviewer:
How about the cost? Is it cheaper?

IO-01:
Hmm… Logically, the cost should be cheaper since there is a possibility that the project finishes earlier
than what is expected. The labour cost, the equipment wages, and all costs can be reduced. However,
I do not think it reduces the cost directly. Since most of our project is small and medium projects, it
might be different from a large project which motivation is very crucial and might reduce cost in a
certain activity directly.

Interviewer:
You mentioned earlier about quality. If the schedule could be faster, is it possible that it might not
reduce good quality and vice versa happened?

IO-01:
Good question. Hmm… It is really possible that the quality is not good since the worker might not be
as keen and neat as before. However, I think the success rate of this innovation mainly depends on
three factors; the methods or the way we are applying it, we as the people who are applying this, and
the workers, the people to which we apply this innovation. It is a bit difficult to be applied since trust
between each other must be built in advance. Therefore, hopefully, this innovation could increase the
quality of the work or at least the same as before instead of vice versa happened.

Interviewer:
So, do you consider it as a successful or unsuccessful innovation?
IO-01:
Hmm, I cannot say that right now, but it seems that it will be a success. If you are saying success, it is
not yet success because we were just starting this innovation. Innovation needs time, but this was just
started in the last six months. However, we are optimist that it will succeed in the future.

Interviewer:
I want to ask whether you have any less succeed innovation or not?

IO-01:
Actually, we have experienced a lot in the less succeed innovation. I do not know whether this is
classified as an innovation or not. However, we were planning to make our health insurance. We did
not want to use BPJS [health insurance from the government]. We did not want to use the other
insurance either such as [some name of insurance companies], and so on. We wanted to innovate and
take care of them by ourselves since we wanted to make sure of our employees’ welfare. I think that
innovation is impossible for me. Moreover, in the end, we could not apply innovation because we do
not know about that. Our enthusiasm was more significant than our knowledge of that innovation.
That is one of the examples.

Interviewer:
So, the reason to that less succeed innovation is due to lack of knowledge about the innovation?

IO-01:
Yes, due to a lack of knowledge because it is not our expertise. Also, another innovation, we were
about to take care of our tax. ‘Ah, it seems easy; we do not need to hire a tax consultant.’ I knew the
fact that the admin staff here has no experience in taking care of the task, but I was assumed that she
could handle it by reading. However, then, we had an issue in a particular task that we could not solve.
That innovation, which was supposedly done by us, was failed, and in the end, we hired a tax
consultant to help us.

Q5. Division in charge of Innovation

Interviewer:
OK, so, who is in charge of those innovations?
IO-01:
Research and development handle that I told you about. I saw my friend’s company has no Research
and development division, but I think that is very important. Therefore, I make one.

INBOUND OPEN INNOVATION

Q6. Inbound Open Innovation Performance

Interviewer:
Now, as a question regarding innovation has been all answered, I would like to discuss the more
detailed topic about open innovation. Firstly, I would like to ask whether or not you have heard
about the term ‘Open Innovation’?

IO-01:
Hm… I have never heard before. However, when I heard about that term, I suddenly remember my
friend in Singapore, which has collaborated with many companies about many things. Nonetheless, I
do not know whether it is open innovation or not, and I do not know what makes it different from
closed innovation.

Interviewer:
OK, so, now I want to show you a video about open innovation to give you a brief understanding of
it.

[Showing Video]

Interviewer:
So, for a very brief explanation, there are two aspects of open innovation. Inbound and Outbound.
Inbound is when the company is doing the open innovation, but they are receiving the innovation
from the external stakeholder, while outbound is when the company is doing the open innovation
by giving the idea of their innovation to the other company, or it can also be called
commercialisation. What do you think of open innovation?

IO-01:
Hm… After watching the video, I feel familiar about it since maybe people have done it before without
knowing that it is called open innovation. I have an example of outbound open innovation from my
friend’s experience. He is working in a consultancy soil company. They were only calculating bearing
capacity, landslide, and so on. They used not to calculate bored piles, the reinforcement of the bored
pile, pile cap which is located on the bored piles, or the size of the pile cap. They do not know how to
calculate them even though they are the Bachelor of Civil Engineering. One of my friend’s innovation
is making a seminar or short course, which is hosted by his research and development team. They ask
the other friend to teach them. For those who teach, it is not an innovation, because they were not
changing from the past. However, for my friend, it was something that they have never been able to
do, but now they can do it if they are asked to calculate simple bored pile. It means that their
competitiveness is increasing and different to the market. So, I think it has already existed even though
people do not know it. I think it is quite hard to differentiate from just normal collaboration. I do not
know whether this is open innovation or not, but we get a large project right now. If it is a large project,
such as highway, there must be another expertise working on this project such as highway contractor,
transportation contractor, structure consultant, geotechnical consultant, and others, multi-discipline.
However, again, I do not know whether it is open innovation or not because what we did was just
multi-discipline collaboration; there is no knowledge sharing and innovation sharing. Seems like
interesting but that is what we have done before.

Interviewer:
For this dissertation, I am highlighting inbound open innovation because it is more general and more
popular instead of outbound open innovation. Many people are having a paradigm of not sharing
their innovation. So, responding to your answer, many people have never heard this even though
they might have applied this, it is because the term itself existed in 2003, but it has been applied far
before. However, since there was a person named Chesbrough talked about this, many people
researched this. That is why answering your statement that many people have done this even
though they do not know the term.

IO-01:
OK. Oh, I just remember. We might not have started doing inbound open innovation, but we have
made a deal with Universitas Katolik Parahyangan. So, interestingly, we collaborated a lot with one
lecturer in that university, since he is the head of the laboratory. As a construction company, we
looked from the construction company in other countries, that we have to understand what the
consultant does as well. So, we started to look at it. Our idealism, me and the workers are we have
many chances because we are still young. Some employees are a class 2008, and even a class of 2014,
2015, and furthermore some have not graduated yet. I think millennials are supposed to open
themselves up. It then becomes our jokes in this office. If you do not innovate today in civil
engineering, it is better for you to sell satay. That is the extreme way. It means that innovation is a
must. How we get an idea for innovation, we should look from the other, we see from their work,
especially from the other company. For example, ‘Oh in China, they have done this, in Singapore, they
have done that.’ Then we decide to learn what consultant do too. We think that it is important to
recheck the work of the consultant; otherwise, we can be fooled by them. So, with Universitas Katolik
Parahyangan, we learned BIM. Most consultants are using BIM now. It is impossible if we send our
worker to join the training in another company. So, what we did is, we asked the university to provide
the software and operator which can do BIM. Right now, they still have not finished learning about it.
However, they have bought it and started researching it. There are some students in that university
have done some research about BIM, with the hope that they will work in our company. That is our
innovation. We think it is important, so we did it with the university.

Interviewer:
Have you started this?

IO-01:
Yes, they have prepared them, but they are still doing the research right now. Therefore, we have not
applied this in any of our projects, and I still do not know much about it. It might be ready in one or
two years after all have been ready.

Interviewer:
What triggers you to do this inbound open innovation?

IO-01:
Because we cannot work alone. We lack knowledge. No person can do anything. Even though I can do
anything, for instance, there must be someone who can do better than me. If we talk about industry
4.0, it means collaboration. The company will be terminated if they are working alone. So, I think
collaboration is needed.

Q7. Interviewee Perspective of Inbound Open Innovation

Interviewer:
What do you think is the benefit of Open Innovation if you are looking from the video?

IO-01:
I think the benefit is that we do not have to do the same research as the others. Can you imagine if
we live alone in this world, and then we were asked to design the pillar? There must be much
reinforcement. Imagine if the reinforcement is too tight, the aggregate cannot fill in. It usually has a
one-inch space, but now some people want to make the half-inch space. Imagine if there is no
knowledge from the others, innovation about self-compacting, self-filling concrete, and we are alone.
Suddenly, my worker goes to the lab, make a self-compacting and self-filling concrete. Therefore, the
conclusion of my story is that, if there is inbound open innovation, people do not have to do what
other people have done. We can do a more and greater task. For example, this BIM, there is no reason
that we are learning BIM from the beginning of the university has a task for learning it. It is better to
collaborate with them.

Interviewer:
There are some private construction company which is not applying innovation. Why do you think
is that?

IO-01:
I think it is usually because the owner is quite old. That is what I think even though some survive. I
think if they are a specialist company, no one will be survived if they do not innovate. For example,
building contractor. Since there are many building contractors, they have to innovate, or they will be
left with the other. Another example, there is one contractor in Bandung, which has been built 20 to
30 years ago, but they have no internal innovation. Why do they still survive? I think because they are
not doing it alone. Their kitchen is not in their office. They are doing it by collaborating with maybe
other company or institution. I think it seems like impossible if they do not innovate since 10 or 20
years ago, they are still using conventional method and conventional equipment. So, maybe the
prescriptive mind can halt the company to innovate more.

Interviewer:
What do you think is the capability of a director in applying Inbound Open Innovation?

IO-01:
I think the CEO has a role in deciding which innovation is being able to be applied and necessary to
enter the company. Even though we are doing innovation, we should not bring all innovations into the
company. We have to look at whether it matches our market or not. For example, innovation for the
highway should not be used in our company since we are building contractor. We have to carefully
select which is the best and needed for us because not all have to fit with this company. If all are
brought to the company, it is impossible, right? So, the director needs to have the ability to decide the
important innovation. It is impossible too if the R&D is just trusted to the staff. If it is not working well,
we cannot produce anything.
Q8. Recommendation for doing Open Innovation

Interviewer:
As a company that is doing open innovation, do you recommend other private construction
company to apply this?

IO-01:
Yes. However, if the owner is an old man, I do not think so. For example, a construction company
whose owner is our senior, civil engineering, class of the 1960s or the 1970s, and they are a director
in the famous construction company in Indonesia. It is impossible to tell them. They are very high
above. Innovations might be not needed anymore. Just let the young innovate. However, if we are
discussing things with people which has a construction company but approximately has the same age
as me, we will make some conversation about ‘what is your innovation?’, ‘what work are you doing
right now?’, or other jobs conversations. If I meet my friends, we might talk about collaboration. Again,
collaboration is not always about innovation, right? So yeah, we sometimes talk about innovation and
sometimes not.

Interviewer:
For the last question, which one do you think to produce a better result between regular innovation
and open innovation based on your experience?

IO-01:
For now, I think the regular innovation because open innovation in my company has not started yet.
However, I think open innovation that I will do will give a big step for my company instead of the
general innovation since when we collaborate with the other institution, it feels like we are more
convenient to do the bigger innovation. Maybe it is also because we are a medium-sized company. If
it is a large-sized company, they may have a different opinion.

Interviewer:
OK, so all answered has been asked and thank you for your time and willingness to be my
interviewee.
Interview Transcript with IO-02
INTRODUCTION
Q1. Introduction

Interviewer:
Good Morning Sir, thank you for your time and willingness to be the respondent for my interviewee.
So, in the beginning, I want to introduce myself. My name is Angelia. I am a postgraduate student
at the University of Leeds taking International Construction Management and Engineering
Programme. At this moment, I am doing a dissertation which discusses “Open Innovation”. Before
starts, I would like to ask you to read the Informed Consent Form to know your rights in this
interview, how this interview will be done, and what will happen after. The document will be given
in two languages, English and Bahasa, which two of them have the same information. After
agreeing, I hope that you sign on the form.

Interviewer:
Thank you, and this form is for you. Prior to start, I would like to ask for the consent for recording
this interview to avoid misconception while analysing this interview due to missing some important
details.

IO-02:
OK.

Interviewer:
If there is a question that you are not convenient, you can refuse not to answer. This interview is
only used for the dissertation and will not be published on any platform. It will also be written as
anonymous to mind the credential.

INDIVIDUAL AND COMPANY’S PROFILE

Q2. Individual and Company’s Profile

Interviewer:
As the beginning, I would like to ask what your position in your company is?

IO-02:
I am the CEO of my company.
Interviewer:
What is the grade of the company? Is it classified as large, medium, small, or micro company?

IO-02:
Hm… I think my company is classified as a small-sized company.

INNOVATION
Q3. Innovation Performance

Interviewer:
OK, now, for the first topic, I would like to talk about innovation in general. Innovation is generally
a new finding which is different from the existing. For example, if you want to build an earthquake
resistance building, if you usually use timber as the main material, maybe you can start using
bamboo, which is stronger than timber.

Interviewer:
I would like to ask, what does “innovation” mean to you? What is your opinion about that? Is it
something important or maybe you have another opinion?

IO-02:
I think innovation is very important. As a contractor, we have to innovate, particularly regarding the
development of the material, and sometimes equipment. About method, my company is still using
the conventional one since it is a small-sized company. I am realised that material advancement grows
very fast that we must catch up; otherwise, we could lose from the other company as new materials
give many benefits to the project. I do not know whether it is classified as an innovation or not though.

Interviewer:
I think it is classified as an innovation.

IO-02:
Oh. OK. Maybe this is the example. I am going to talk about technical innovation. If we want to plaster
the wall. Have you seen it before?

Interviewer:
Yes, I have seen one before.
IO-02:
You make it like this, and like that, and you add a layer, and like that, right? Now, there is a [new]
technology. Not exactly a [new] technology since it is not actually new, it is called the corner bead.
How to apply this corner bead? The material is aluminium, and you just need to put it in the corner.
From the material, it could increase the working speed and efficiency as well. I think contractors are
seldom using that corner bead. However, I apply those in my company. So, in every project in my
company, we always use that to plaster. That is an innovation in my company. The second one, for
plaster too, there is a mixing called renal. If we use renal, we do not need to do plaster anymore.
Nevertheless, this is like a mixing which is used for light-weight brick only. I do not actually know
whether this can be applied for just normal-weight brick. I have never applied it to the normal-weight
brick since I am afraid that something undesirable could happen. So, for me, innovations that we do
are material and equipment

Q4. Innovation Success Rate based on Iron Triangle

Interviewer:
Does it affect the project’s schedule and time completion of the project?

IO-02:
Yes, it speeds up the project’s schedule of course. I think not only time but also quality because the
corner is being neater instead of doing it handmade

Interviewer:
How about the cost? Does it end up over budget or under budget?

IO-02:
About cost, we still do not know because there has not any research regarding that. However, I
optimistically said that it must be cheaper.

Interviewer:
However, has this innovation done before?

IO-02:
Yes, we always use that now, but there has not been any research of the corner bead regarding its
cost
Interviewer:
So, regarding time, cost, and quality, do you think this innovation is a success?

IO-02:
Yes, but through time, we were doing trial and error since I have no R&D. I just know recently that if
we use corner bead in the outdoor, because of learning from the previous projects, it has to be
detached immediately or cover them with a layer, because it might be rust. The material is not full
aluminium; it also comprised of galvanised; therefore, it might be rust. If we use the corner bead in
outdoor and it is left is for a long time, it will rust. Hence, there must be special treatment for that.
We layer it with anti-rust or cover them immediately. Moreover, because I have no R&D, I have not
got time to research it too. It is supposed to be researched by R&D right. However, since, we do not
have one, and we just apply that, some owners were complaint due to this trial and error.

Interviewer:
I want to ask whether you have any less succeed innovation or not?

IO-02:
That innovation that I told you before, the application of corner bead in the outdoor. This condition is
actually a special case because usually, I do all the painting by myself. For that project, we use a
subcontractor for the wall painting. The subcontractor takes a too long time for the work, so it ended
up rust.

Interviewer:
So, the reason to that less succeed innovation is due to lack of knowledge about the innovation?

IO-02:
I think it is about a lack of knowledge. Since we do not have R&D Division for it, no one researches it,
so it is hard to use this innovation due to lack of experience and knowledge.

Q5. Division in charge of Innovation

Interviewer:
OK, so, is there a division which is in charge of those innovations?
IO-02:
No one. It is all from my Project Manager and me. He is the one who does many innovations. ‘Why is
it like this? Why is it like that?’ He is still young and often joins the exhibition about civil engineering.
So, after the exhibition, he often shares the idea to me. For example, I was offered a project which
uses mezzanine. Do you know mezzanine?

Interviewer:
No, but I think I have heard about that.

IO-02:
So, we were offered a project which uses mezzanine floor and steel structure. It sounds hard to
construct it, right? If we cast the plate, it is hard, right? Now, there is a technology called causey floor.
How you apply this, it is easy. You just need to place it down. However, there should be many
frameworks. There should be many beams, so you just need to place them, and bore them. Place it,
bore it, place it, bore it. Thus, I think material answers the issue, innovation answers the issue, which
I usually adopt innovation that is adjusted. I very rarely do the innovation that I did on my own.

Interviewer:
Why there is no specific division which is taking care of this innovation?

IO-02:
Hmm, firstly, for business, cost. We are a small-sized company in which revenue is not big. Maybe, if
my company has settled, I might have R&D for taking care of it. It feels like it is not necessary and fit
for a small-sized company like mine. However, sometimes, since I am working as a lecturer too in
university, those questions and issues that I found in the project are researched by my undergraduate
student for their thesis like you. Galunggung sand and Cimalaka sand. I think that is innovation.
Galunggung sand which people said give better quality since the price is high, turns out just the same
as Cimalaka sand. It was breaking people’s paradigm. I did innovation, but there is just no speciality
division regarding it.
INBOUND OPEN INNOVATION
Q6. Inbound Open Innovation Performance

Interviewer:
Now, as a question regarding innovation has been all answered, I would like to discuss the more
detailed topic about open innovation. Firstly, I would like to ask whether or not you have heard
about the term ‘Open Innovation’?

IO-02:
No, never heard before.

Interviewer:
OK, so, now I want to show you a video about open innovation to give you a brief understanding of
it.

[Showing Video]

Interviewer:
So, for a very brief explanation, there are two aspects of open innovation. Inbound and Outbound.
Inbound is when the company is doing the open innovation, but they are receiving the innovation
from the external stakeholder, while outbound is when the company is doing the open innovation
by giving the idea of their innovation to the other company, or it can also be called
commercialisation. What do you think of open innovation?

IO-02:
Open Innovation… I think it is very good. It is very important. However, for a small-sized company like
me, it feels hard to collaborate with the other institution. I do not have R&D division, which I think is
crucial to meet the succeed in open innovation. However, I think yes, it is important. Maybe if my
company has got any bigger, I might apply that. However, even though I have never heard before, it
seems like I have heard some of my friends did this before.

Interviewer:
For this dissertation, I am highlighting inbound open innovation because it is more general and more
popular instead of outbound open innovation. Many people are having a paradigm of not sharing
their innovation. So, responding to your answer, many people have never heard this even though
they might have applied this, it is because the term itself existed in 2003, but it has been applied far
before. However, since there was a person named Chesbrough talked about this, many people
researched this. That is why answering your statement that many people have done this even
though they do not know the term. Have you collaborated with other institution or external
stakeholder regarding innovation?

IO-02:
I have never done it before from as a contractor. However, since I am a lecturer, from the side of
academic, some offered me something like that. For example, a printing company in Bandung, they
have the ambition to make a 3D printer. The 3D printer is actually an expensive technique in which
people do not want to share with other people. He wants to make a local version, because it is usually
from China, Russia, and other countries. They came to me as a private company. This private company
collaborate with innovation since they need civil engineers. Another example, maybe the easiest
example is another lecturer in here, the R&D of cement company was going to this university looking
for collaboration with that lecturer.

Interviewer:
How about in your company? Have you done inbound open innovation?

IO-02:
My company has never done inbound open innovation

Interviewer:
Why doesn’t your company do any inbound open innovation?

IO-02:
Well, I think it is because that is not our focus. It feels like we want to innovate, but we do not have
time for that. We are too busy to work and do not have time for that. Actually, I cannot say that I do
not have time. However, since I work in two industry, construction and academic, so I have never
thought about it. Therefore, I am the R&D as well, but it seems as if from the external stakeholder. If
I am not a lecturer, if I am purely a contractor, I think having R&D and doing inbound open innovation
is not a necessity because we think that the other is still more important. We are now thinking more
about the design and quality, not open innovation. If I want to do it, I have to invest more in R&D
division, and it is of course needed to be legalised. However, it has to be professional. Yes, in my level,
it has not been the priority to do open innovation and the other innovation.
Q7. Division in Charge for Inbound Open Innovation

Interviewer:
So, there is no division which takes care of this?

IO-02:
No.

Q8. Interviewee Perspective of Inbound Open Innovation

Interviewer:
What do you think is the benefit of Open Innovation if you are looking from the video?

IO-02:
I think the benefit is; the work is being effective and efficient because we have found new method.
We can gain trust from the owner, work faster, be more efficient, cheaper cost, and it is the benefit
of open innovation.

Interviewer:
What do you think is the capability of a CEO in applying Inbound Open Innovation?

IO-02:
Firstly, it is about the organisation. As a small company, if we want to enter the public project such as
[name of the construction entity], we have to think about everything properly, I need to have divisions,
I need to have the R&D, keep innovating and learning from every project, its deficiency and its
advantages, what I can get, and in the next project, I have to be better. Every project has to be
evaluated for the next project too.

Q9. Interviewee’s Desire to do Inbound Open Innovation/Recommendation

for doing Inbound Open Innovation

Interviewer:
After listening about the concept of open innovation, will you do open innovation?
IO-02:
Maybe, I will not do the outbound open innovation, but for the inbound open innovation, I might do.
Oh, but I do not think so. I will not collaborate with the other stakeholder for innovation because my
company is small. However, if I meet my friend, we are sometimes discussing innovation such as ‘have
you used this method before?’ Nevertheless, if I want to do it in the future, actually we have got many
ideas. Doing research takes much time even though in the end, I might ask my undergraduate student
to do it for their thesis.

Interviewer:
OK, so all answered has been asked and thank you for your time and willingness to be my
interviewee.
Interview Transcript with IO-03
INTRODUCTION
Q1. Introduction

Interviewer:
Good Morning Sir, thank you for your time and willingness to be the respondent for my interviewee.
So, in the beginning, I want to introduce myself. My name is Angelia. I am a postgraduate student
at the University of Leeds taking International Construction Management and Engineering
Programme. At this moment, I am doing a dissertation which discusses “Open Innovation”. Before
starts, I would like to ask you to read the Informed Consent Form to know your rights in this
interview, how this interview will be done, and what will happen after. The document will be given
in two languages, English and Bahasa, which two of them have the same information. After
agreeing, I hope that you sign on the form.

Interviewer:
Thank you, and this form is for you. Prior to start, I would like to ask for the consent for recording
this interview to avoid misconception while analysing this interview due to missing some important
details.

IO-03:
OK.

Interviewer:
If there is a question that you are not convenient, you can refuse not to answer. This interview is
only used for the dissertation and will not be published on any platform. It will also be written as
anonymous to mind the credential.

INDIVIDUAL AND COMPANY’S PROFILE

Q2. Individual and Company’s Profile

Interviewer:
As the beginning, I would like to ask what your position in your company is?

IO-03:
I am here as a Vice CEO.
Interviewer:
What is the grade of the company? Is it classified as large, medium, small, or micro company?

IO-03:
Hm… I think my company is a small-sized company.

INNOVATION
Q3. Innovation Performance

Interviewer:
OK, now, for the first topic, I would like to talk about innovation in general. Innovation is generally
a new finding which is different from the existing. For example, if you want to build an earthquake
resistance building, if you usually use timber as the main material, maybe you can start using
bamboo, which is stronger than timber.

Interviewer:
I would like to ask, what does “innovation” mean to you? What is your opinion about that? Is it
something important or maybe you have another opinion?

IO-03:
Hmm… I think innovation is something important even though some barriers make innovation is hard
to be applied, especially because we think the construction industry is still struggling with applying
those innovations.

Interviewer:
Have your company done any innovation?

IO-03:
It depends on what innovation you are asking. If it is related to the work method, we do it many.
However, about innovation in management or the other, we have not done any. Just applying what
has already exist.

Interviewer:
Could you please give me an example of your innovation?
IO-03:
The innovation of the work method, for example, when we are offered the jobs, the project can be
varied. Not all method can be used from one project to the other project. Often, we innovate when
we face something new that we have never done before or something we have never seen before.
Usually, we innovate with gathering data from the internet, asking people who have experienced
about how to do it. That is innovation that we usually do.

Interviewer:
Do you still remember any of the concrete examples of what jobs required innovation?

IO-03:
About concrete example, we were recently offered a job to make a skylight. The design itself was a bit
unique because we have not seen that design. The design is the glass which is supported by rubber
around. The design from the owner is, the glass, with rubber around, and then concrete. Actually, we
are still working on it about how to apply them on the site because the size of the glass itself can be
said as big and heavy. Then, it is actually impossible to be supported just with rubber because the risk
is quite huge. We are afraid that something bad might happen to the rubber, and the glass will end up
broken. So now, we are still looking out on how this glass can be supported well without changing too
much design. Until now, we have not found a solution. Oh! Yesterday we had thought to put steel,
plain steel. However, we have to review it first with the consultant and the owner since it will change
the preliminary design. Therefore, we need a recommendation from them as they actually cannot
recommend on how or what work method should be done. The thing that makes it hard about this
innovation is that innovation is limited to time construction. Many of the work method that we have
to look first the way of doing it, and then ask for approval, and in Indonesia itself, that kind of thing,
many owners have no knowledge about the procedure of changing the design. That problem makes
us harder to innovate with the work method and others. Because of the owner thinks it is not usual,
strange, they will not take a risk on it, and we will not be brave enough if there is no approval and
agreement from the owner, right?

Q4. Innovation Success Rate based on Iron Triangle

Interviewer:
Does it affect the project’s schedule and time completion of the project?
IO-03:
Well, I think by doing this kind of innovation, it really affects the project’s schedule because as I said
earlier, the issue of this kind of innovation is limited with time construction. For my company, when
the jobs offered are different, then we lookout on how to make it based on the offer. That is what
makes innovation take much time. Then, another limitation is in the cost. Because it is cost a lot to do
innovation. That is being the fundamental reason why we do not do innovation often.

Interviewer:
How about quality? Do these innovations which affect the completion time and escalate the cost
generates a better quality?

IO-03:
Well, I think the purpose of we are innovating is to produce something better, faster, cheaper, and
others. However, the things that make it is hard is the realisation itself. Maybe, to find the new method
or the other innovation takes time and we have to spend some cost. Well, I think for my company, I
do not think it is worth it to do many innovations that are considered unnecessary. That is why we
innovate when we found an issue.

Interviewer:
So, regarding time, cost, and quality, do you think this innovation is a success?

IO-03:
If you said success, we actually do not know because we are still doing a trial for it. However, it may
reach success if we can deliver the project to the owner, and they are happy with it. For the cost and
time, it might bad. However, from the quality, it can be good or at least, we can deliver the project to
our client. So maybe it will succeed.

Interviewer:
I want to ask whether you have any less succeed innovation or not?

IO-03:
For that thing, actually, we have those experience. Like, for example, lifting the large glass, has many
techniques, many methods, and we have to teach the worker on how to do it. Not all worker is good
at handling large glass, so we innovate many times on how to lift it. We do this innovation, oh, it is
failed, and we try the other way, and it is failed again, until we found how the best method is. Because
the glass itself is different one from the other, even for its handling.
Interviewer:
So, the reason to that less succeed innovation is the worker? Alternatively, is there another factor
which makes the innovation is less succeed?

IO-03:
Actually, there are many factors of why innovation is not succeeded. Maybe because the chosen
method is wrong, we study the wrong things, or the level of understanding of particular innovation is
less than what it is supposed to. In Indonesia, people prefer to think conservatively instead of thinking
far away ahead.

Q5. Division in charge of Innovation

Interviewer:
OK, so, is there a division which is in charge of those innovations?

IO-03:
In our company, we do not have that kind of division. If we found something that needs a solution, we
usually discuss things together. There is one division or some people that have a task to innovate.

Interviewer:
Why there is no specific division which is taking care of this innovation?

IO-03:
Again, firstly, I do not think it is needed. Secondly, we are still thinking about their cost. It is not a
necessity for our company. Because we think there are still many things to do in our company. Many
things still need to be fixed because innovation itself has not been something important in our
company.
INBOUND OPEN INNOVATION
Q6. Inbound Open Innovation Performance

Interviewer:
Now, as a question regarding innovation has been all answered, I would like to discuss the more
detailed topic about open innovation. Firstly, I would like to ask whether or not you have heard
about the term ‘Open Innovation’?

IO-03:
Yes.

Interviewer:
What do you know about open innovation?

IO-03:
Open innovation is… what I know is… that open innovation is more about innovation that is opened
to some people or some… The point is, we innovate with people from outside of our company.

Interviewer:
OK, so, now I want to show you a video about open innovation to give you a brief understanding of
it.

[Showing Video]

Interviewer:
So, for a very brief explanation, there are two aspects of open innovation. Inbound and Outbound.
Inbound is when the company is doing the open innovation, but they are receiving the innovation
from the external stakeholder, while outbound is when the company is doing the open innovation
by giving the idea of their innovation to the other company, or it can also be called
commercialisation. For this dissertation, I am highlighting inbound open innovation because it is
more general and more popular instead of outbound open innovation. Many people are having a
paradigm of not sharing their innovation. What do you think of open innovation, particularly
inbound open innovation?

IO-03:
Well, if it is like that, inbound open innovation is actually good. For example, my company itself may
do not have R&D division, but we think that we will start innovating in a short period. I now feel that
my mind is opened that innovation is important. Maybe, our expectancy to the future is now to
collaborate with the other institution. Maybe if we are doing the innovation by ourselves, it takes one
year. However, if we are collaborating, it can be faster. So, maybe it causes the wider furthest area.
So, from us… maybe our mind it still narrowed, but if there is stakeholder involved, we can open our
mind and see from the other point of view too.

Interviewer:
Have you collaborated with other institution or external stakeholder regarding innovation?

IO-03:
Well, actually about collaborating with the other institution, we never collaborate in innovation.
However, we often invite the speaker or look for experts who can teach us. However, if we call the
institution to innovate, I guess we have not.

Interviewer:
Why doesn’t your company do any inbound open innovation?

IO-03:
Hmm… It is more because we have not put some budget on it. Maybe because we think more about
how, not only us but for most of the company, how to find a profit with less cost. However, maybe in
the future, if we see, many companies that do not innovate will be terminated. Therefore, actually,
we have already had a thought to do open innovation even though the preparation has not completed
yet.

Q7. Division in Charge for Inbound Open Innovation

Interviewer:
So, there is no division which takes care of this?

IO-03:
No, we do not have a division associated with that.
Q8. Interviewee Perspective of Inbound Open Innovation

Interviewer:
What do you think is the benefit of Open Innovation if you are looking from the video?

IO-03:
Well, I think the benefit is, as I said, the more people participate in this, the more brain can be involved
too, more point of view. More point of view means that we can be more open. Maybe it will also
generate better and faster work.

Interviewer:
What do you think is the capability of a vice director in applying Inbound Open Innovation?

IO-03:
Hm… capability, for example, people in a senior position, such as CEO, vice CEO, director, vice director,
or other top positions, they have to understand, they have to know and have a thought to do inbound
open innovation. Maybe, for capability, all people have to learn. However, the most important thing,
we have to think that innovation is important. For the company, people should not only think of profit
only but also thinking on efficiency and other thinks. The most important thing is has thought in that
direction.

Q9. Interviewee’s Desire to do Inbound Open Innovation

Interviewer:
After listening about the concept of open innovation, will you do open innovation?

IO-03:
Yes, maybe I will do this in the future.

Interviewer:
OK, so all answered has been asked and thank you for your time and willingness to be my
interviewee.
Interview Transcript with IO-04
INTRODUCTION
Q1. Introduction

Interviewer:
Good Morning Sir, thank you for your time and willingness to be the respondent for my interviewee.
So, in the beginning, I want to introduce myself. My name is Angelia. I am a postgraduate student
at the University of Leeds taking International Construction Management and Engineering
Programme. At this moment, I am doing a dissertation which discusses “Open Innovation”. Before
starts, I would like to ask you to read the Informed Consent Form to know your rights in this
interview, how this interview will be done, and what will happen after. The document will be given
in two languages, English and Bahasa, which two of them have the same information. After
agreeing, I hope that you sign on the form.

Interviewer:
Thank you, and this form is for you. Prior to start, I would like to ask for the consent for recording
this interview to avoid misconception while analysing this interview due to missing some important
details.

IO-04:
OK.

Interviewer:
If there is a question that you are not convenient, you can refuse not to answer. This interview is
only used for the dissertation and will not be published on any platform. It will also be written as
anonymous to mind the credential.

INDIVIDUAL AND COMPANY’S PROFILE

Q2. Individual and Company’s Profile

Interviewer:
As the beginning, I would like to ask what your position in your company is?

IO-04:
I own the company
Interviewer:
What is the grade of the company? Is it classified as large, medium, small, or micro company?

IO-04:
I cannot say whether my company is classified as large or small. My company is a steel company. We
are doing a commercial building and industry, such as factory, warehouse, or other buildings which
use steel structure. Therefore, the grade to this steel construction company is based on predicate too.
Within a year or so, we have been the vendors from several large developers in Indonesia. Hence, if
you are asking about the company’s capacity, we have built up to 200 warehouses a year. The project
itself can be quite extensive, but we cannot measure the capacity of whether this company is a small,
medium, or a large-sized company. Maybe, if you categorise, it is not a large company like a public
company, not like that. However, if you compared to a small contractor who built one to two houses,
it is not like that either. I can say it is a medium-sized company.

INNOVATION
Q3. Innovation Performance

Interviewer:
OK, now, for the first topic, I would like to talk about innovation in general. Innovation is generally
a new finding which is different from the existing. For example, if you want to build an earthquake
resistance building, if you usually use timber as the main material, maybe you can start using
bamboo, which is stronger than timber.

Interviewer:
I would like to ask, what does “innovation” mean to you? What is your opinion about that? Is it
something important or maybe you have another opinion?

IO-04:
Innovation, in my opinion, is very important. One reason why I am still teaching now is that I want to
develop innovation, to keep up with times. For example, if we are only learning from experience, like
what my parent did, based on his own experience, self-taught learner and so on, and just applied that,
it is hard. We know that education in Indonesia is too theoretical. It is so different from what is used
in the site. Automatically, the improvement to people who are doing self-taught will be just as long as
you can work. From the perspective of a businessman, the purpose of working is only looking for
money. However, it is different from the perspective of people who are just working. If they have a
perspective of working, his task is only working. Someone gives me a job, then we work. That is the
principle. However, if you look from the perspective of a company, then you will find a different path.
Firstly, from the perspective of the businessman, he worked as long as he can get money, as long as
he can get the benefit. That is the point. Anything he did, he always learns from the previous similar
event. If we are talking about innovation, the reason I was saying it is important, and so on is because
I very prioritise innovation. That is why, if the company want to be developed, the company has to
innovate. Otherwise, our competitor is like a pyramid. Those who only want to look for a job is from
the lower classes. So, the more bottom your position or you just imitate people or just doing what
people do, of course, you will have more competitor. The more you innovate, the harder the work you
are doing, the fewer people do, automatically innovation emerges so that you will have less
competitor. That is the key where effort is required. I can assume that effort is innovation. The more
you think to process anything of it, you need to think, and you need knowledge. Automatically, you
give more effort. If you are only looking at someone that has done something and then the company
is just imitating or process the same work, I think it is not innovation since everyone can do it.
Automatically, for me, the effort is not as high as those who create new things, find new things.

Interviewer:
Have you ever done any innovation?

IO-04:
I think all companies must innovate. Just how high the level of innovation is. So, for example, if
someone said that some companies have never done any innovation, I think it is wrong since everyone
must learn from experience and projects that have been undertaken, through years, it makes the
company developed. I think every company must innovate from one to another. For the next
experience, if he thinks there is something needed to be fixed or something lacking, it will be fixed and
added and so on. We can say that it is the actual innovation. However, there is another more that
people can innovate more that, which is not only fixing the mistake but changing the system. From
the previous system that might lack can be better, so I can say it is changing the system. That is what
you want to talk about in innovation, I think. There it is. How big the innovation is, is coming from the
company’s capacity and how big the company want to develop, and the second one, there is a factor
for the company to innovate. Firstly, most importantly, is the budget. Firstly, it is the budget, how big
the budget from the company is. Secondly, how much the revenue of the company. What I mean by
revenue is how much the cost cycle of the company is. It is based on revenue and else. If, for example,
our cycle is small while our capacity is still in A, still small. Automatically, everyone will grow bigger,
even though it will not be automatically that big, right? There must be a step, a development that is
growing slowly. This company is also from my parent. So, my parent has developed this since 1995.
Automatically, it is 25 years now. My parent starts this from 0, so we can say we have nothing, and we
did not have a workshop, but now we have two workshops. One has the area of 2400 m2, while the
other one is almost 1 hectare. Right now, we are preparing the third workshop in Balaraja, which has
the area of almost 6 hectares. We keep developing, and I can say that this development is innovation.
Why? We used to have 2400 m2 area, and then we do the expansion which we think 1-hectare area
is quite big, almost 1 hectare, around 9000ish, but I think that is quite big, but now, we think that we
still need more, there is still something that… we still need more land. So, we are looking for new land
for us to do the expansion, that is what I say innovation. Why I am saying innovation because I know
that our capacity is bigger within time, so there must be something that we should add to a company.
In a company, for example, we used to do not have any machine. I have owned a steel construction,
automatically, all things about steel, all fabrications and all related to steel need a machine. We used
to use machines from China. From 1998 to 2004, we used machine machines from China. However,
now, we are using machines from Europe. Why we are changing to Europe machine because there
must be a reason and the cause. For example, the previous machine has lower durability and capacity
than the current machine. Europe machines, the one that we are using right now, are more precise. It
is more durable than the Chinese machine. For example, in a day, we can use them in 8 working hours.
If we are using machines from China, we have to stop every three hours, before it can be used again.
So, the capacity in one workshop cannot be maximal. When we are talking about workshop effectivity,
it is different from the method. However, I can say that is innovation too since we want to develop so
we know what we should improve, and to what direction where our company is improving too.
Henceforth, the second thing that I want to talk about innovation, we are also talking about… people
used to use red brick to make a wall. Also, then, people started thinking ‘Oh, I want to be faster.’
People produce something that is called light-weight brick. It is getting popular, and people start using
it. The size is bigger, lighter, so people can work faster. It is an innovation for me, from the result of
the research, just apply to the applicator. If it is applied in the high-rise building, people used to use
red brick. Moreover, then, they changed to light-weight brick, now some developers have stated that
they are using drywall. What is drywall? It is just a hollow frame with gypsum. However, there is a
weakness of it, hollow frame and gypsum are easily broken, or easy to hole, and so on. Now, I innovate,
I make a new material for the wall. The wall that I made got a core on it. We use the honeycomb core.
We were innovating, but it is still in the trial period now, and not many people using it. Some use
them. However, that is an improvement. Where do we get this? From the result of meeting people,
laboratories result, from the question that I still think about how much noise that drywall can absorb.
That is what I cannot answer because I still want to research them. However, it is still an innovation.
From the red brick that is heavy until light-weight brick, and now my brick which is solid, but it still
light. Even though if my brick is heavier compared to light-weight brick, but the difference is only
approximately 5 to 10%. It is not significant. For the drywall, people are sometimes trying to reduce
the noise by using a rock wall. If you are studying in Europe, you will not find this rock wall, glass wall,
because these materials can be dangerous. Your skin can be itchy if it touches the material. Just in
case, they are not using it anymore now. We think that we have to change too. If you are asking me
whether it needs innovation, it very needs innovation. That is the reason why we are still developing.

Q4. Innovation Success Rate based on Iron Triangle

Interviewer:
Does it affect the project’s schedule and time completion of the project?

IO-04:
Oh yes, of course, since my honeycomb drywall comes in the form of a panel. I have previously tested
them if I use just the normal light-weight brick, it took three days to build, while you only need one
day if you use my drywall. I compared it with a light-weight brick because both are dry walls, which is
comprised of a dry component. If I am saying about red brick, it is still made of cement which is
automatically wet. Drywall, which is made of dry component, is not using cement material. After my
innovation, I separated drywall into two; the one that has no filling and the one that I talked previously,
which fillings are honeycomb, honeycomb core inside and strength is increasing. If we use gypsum
with no fillings, and if it hits accidentally, it might be damaged. If I use my honeycomb core, you can
order how big the strength you want. There was one company which has ordered honeycomb core
for pallet which compressive strength is 8 tons. It is used for pallet. People were using wood for pallet.
Then they turned into plastic. The problem of wood is, wood cannot be used anymore in Europe
because it brings pests, disinfectant, and so on. So, the cost of the wood becomes expensive if it is
brought to Europe. Therefore, they were not allowed the use of wood for the pallet, which made them
use plastic if you see. Now, they use rubber, plastic, but what you think the risk is, the cost is expensive.
If he only sends it one way and not return, the cost is increasing very high. Therefore, they now prefer
to use paper. Can we say innovation? Yes. How can the paper be so strong? Paper can be strong if we
use high or enough technology to the paper. Thus, it does not mean that weak material can be strong,
but we turn paper into a pallet with the weight of paper. What does that mean if it is not innovation?
That is innovation. People developed them, and so do I.
Interviewer:
How about the cost? Does it end up over budget or under budget?

IO-04:
I think the cost is divided into two. There is a reason why foreigners prefer steel instead of concrete.
Concrete is expensive in the other country. In Indonesia, why concrete can be cheap because
Indonesia’s labour cost is cheap. If you compare with labour cost in Indonesia, the effect is very small,
almost no effect. If we are talking about cost, if you are only taking the different cost from the speed
of the work in the scope of one building, of course, there is a difference in cost. However, if it is only
one house, there is no impact. If it is a 40-floor building, and then there are many partitions,
apartment, of course, there is different. What is the difference is? It is cheaper. Why? Because the
workforce is less, the duration of the work is reducing. Although I am using the honeycomb core with
the same price as gypsum, I can get better strength, or at least, I can sell with the same price. With
gypsum, the wide of the light-weight brick is 12mm, but for my honeycomb core, the wide is only
9mm. It means that the material used is less and I reduce the size, which people might think that the
strength is less too. No, of course not. The strength is increasing. We are trying to minimise the mix
design cost while at the same time, we are trying to maximise the strength. That is why many people
are not thinking that way. People only think of work and get profit. They usually think ‘why should I
innovate if I can earn the profit.’ Therefore, usually, only large-sized company innovate, or company
which willing to develop. I do not want to say small-sized company do not want to innovate because
usually, they have no budget.

Interviewer:
So, regarding time, cost, and quality, do you think this innovation is a success?

IO-04:
Oh, yes, of course. How succeed the innovations is, depends on the application of it. For example,
drywall, my honeycomb core. It cannot be used in the moist area, and it cannot be used in the
seashore. This innovation cannot be used globalised which is considered as a successful innovation. I
can say that innovation is the way of us solving a problem specifically. For example, if we said there is
a work that is very hard, not exactly very hard, but different from what we usually do. I have to
innovate for that work. It depends on you whether you want to say success or not, what for. The one
that I use is in the office, inside the building, not to seashore housing. If you say success, it means it
can be used… I assume it is wide, can be applied to every property, but it cannot. However, if it applies
in the right place, it is succeeded. The point is, sometimes, it is hard for us, Indonesian to promote or
introduce the product since Indonesian is way too conventional. ‘Can we just use the existing?’ I think
Indonesians are unwilling to put more effort into the better result. Even designers are also not open
to new ideas. What they like is imitating. The first question is always ‘Where this innovation has been
applied to?’ I have never asked that question, but if the answer to that question is never, they
automatically say ‘no.’ Yes, it takes more risk if it is a new product. However, you cannot say ‘no’
immediately because it has to be researched first, and its benefit can change our mind to be ‘yes’. We
are supposed to be like that. Not immediately like that. I think Indonesian are very close-minded about
research, they are not interested and not considered that as important. They think they have many
works to do, which makes them prefer just to use what has existed. That is why I said that it is hard to
introduce innovation in Indonesia even though there are some of my friends from construction and
developer who want to try new things and innovate.

Interviewer:
I want to ask whether you have any less succeed innovation or not?

IO-04:
I do not want to say a failed innovation, because the reason of people innovating is to be better. So,
for example, if it ends up failing, or there seems no changes or the same with the previous one, maybe
it because it is lack of preparation, or maybe due to its environment. Maybe the contractor is having
a special case right now which insist them to innovate, but because of the time constraint or another
issue, they cannot innovate. However, when people innovate, I am pretty sure that they have
researched them previously and make sure that it should work properly to reduce the risk. Therefore,
it is not failed but less successful. Maybe it has not reached the one that people expect.

Q5. Division in charge of Innovation

Interviewer:
OK, so, is there a division which is in charge of those innovations?

IO-04:
The innovation that my company usually did comes from me. Why? Because there is always a risk in
every innovation. Therefore, definitely, there should be division in charge of it. For selecting or doing
trial and error, and so on. Since I do not have one, it is all under my command. I usually make the team
for a particular innovation, based on how big the case is. Because for innovation, we, of course, need
a budget for trial and error, so if no one is paying for the innovation budget, if we innovate by
ourselves, it is hard. So, we have to choose what to do to the special case, which innovation. I usually
choose based on its case. For example, we get a special work which we have not done before. ‘Let us
do this, let us do that.’ It is more like that. However, it might be different from the large-sized company
that has a particular division. It is their regulation to have that division. However, I do not make one,
and I only innovate based on what might useful in the future. We found it in the construction phase,
but, besides, we are still doing research. That is why I am still a lecturer at this university. So that I can
keep up with the times. Universities are usually joining a conference where I can improve my
knowledge of innovating.

Interviewer:
Why there is no specific division which is taking care of this innovation?

IO-04:
Maybe it is more about the budget. We have already spent a large amount of money for innovation,
and I think that we will not be able to do it if we have a specific division again.

INBOUND OPEN INNOVATION

Q6. Inbound Open Innovation Performance

Interviewer:
Now, as a question regarding innovation has been all answered, I would like to discuss the more
detailed topic about open innovation. Firstly, I would like to ask whether or not you have heard
about the term ‘Open Innovation’?

IO-04:
No, I have not heard before.

Interviewer:
OK, so, now I want to show you a video about open innovation to give you a brief understanding of
it.

[Showing Video]

Interviewer:
So, for a very brief explanation, there are two aspects of open innovation. Inbound and Outbound.
Inbound is when the company is doing the open innovation, but they are receiving the innovation
from the external stakeholder, while outbound is when the company is doing the open innovation
by giving the idea of their innovation to the other company, or it can also be called
commercialisation. For this dissertation, I am highlighting inbound open innovation because it is
more general and more popular instead of outbound open innovation. Many people are having a
paradigm of not sharing their innovation. What do you think of open innovation?

IO-04:
I think that it is the same as regular innovation. It is also important. By being a lecturer, I can have
more network to people who might be able to collaborate with not only regarding innovation but also
another type of collaboration. It is sometimes hard for us to collaborate due to equipment limit. It is
impossible for us to always buy new equipment for particular research which we might not use again
in the future. If we are collaborating with those that we know has the machinery, we can just
collaborate with them. Moreover, machines are not about just buying. There must be someone who
is being able to operate the machine. I think it is quite hard since Indonesian is conventional people
who sometimes reluctant to learn new things. Therefore, when we do not have the resource, either
equipment or human, it is better for us to collaborate instead of buying new machines and hiring new
people and training them.

Interviewer:
Have you collaborated with other institution or external stakeholder regarding innovation?

IO-04:
Yes! My honeycomb core is the result of collaborating with external stakeholders. As I said, we had a
conference that I came as a lecturer. I talk to people, and we discuss some changes, some idea that
might produce better quality, better cost, or better time. I do not know whether it is an inbound open
innovation or not, but I think since we are discussing with other people, I think it might be classified
as inbound open innovation? Oh! However, it is not a formal collaboration. So, yeah, my company has
not done any inbound open innovation.

Interviewer:
Why doesn’t your company do any inbound open innovation?

IO-04:
Hm… Since I think we want to focus on our honeycomb core wall and other material first. We are not
like those large-sized company which can easily make the innovation, easily promote it, and easily sell
it. Our name is not as big as them. For example, the easy thing to compare, Nike. People know Nike,
who does not. One day, they are selling a new product which is very light, very thin, very comfortable
to use, etc. Since it is Nike, they only need to put it on social media, or just put it on the store with the
banner, and people will notice, and they might buy too. It is different from a company that has no
name. They have to work harder, extra hard to make people notice, just notice, not buying. It is hard.
Therefore, I think we better focus first on what we have done one by one until they are succeeded,
then maybe we can start to do the inbound open innovation.

Q7. Division in Charge for Inbound Open Innovation

Interviewer:
So, there is no division which takes care of this?

IO-04:
No.

Q8. Interviewee Perspective of Inbound Open Innovation

Interviewer:
What do you think is the benefit of Open Innovation if you are looking from the video?

IO-04:
For innovation, I think it might be useful for bigger development. Sometimes, there is the R&D team
in the company which is lacking one or two things. Some companies are trained to do the research, so
they have complete equipment. Innovation needs investment. After we succeed, we are no longer
using the equipment. However, if a company that is specialist in the lab, which has a purpose of
researching, automatically, when one research has done, they often have another research so that
the machine will be used again. If we want to innovate by ourselves, of course, it is more expensive,
unless the company has its team which only researching. However, automatically, we have to pay the
team, and some company do not want to do it because they have no budget. I think this specific
division is only owned by a large-sized company. For a small and medium-sized company, I think it is
better to collaborate with the other. Before collaborating, we have to discuss how to share the profit.
We have to make a contract for it.

Interviewer:
What do you think is the capability of a CEO in applying Inbound Open Innovation?
IO-04:
As the CEO, I think the most important is its background, that person has to understand what the
worker is working on in the site. Secondly, being more open, look outside. Do not only stay for what
is around. I think that capacity, for example, studying abroad through either student exchange, or just
study abroad, that is good. Also, knowing what your capacity is. Not all leader is smart. However, every
leader has to know how to make everything is working. For example, our president, President Jokowi.
I think he is also a leader, a country leader. Does he smart? No. I am sure that the ministers are smarter
than him. However, he knows how to control and take care of everything to work better. How can we
measure that? From his self-ability, the way he is thinking and his perspective.

Q9. Interviewee’s Desire to do Inbound Open Innovation

Interviewer:
After listening about the concept of open innovation, will you apply inbound open innovation?

IO-04:
Maybe. It depends on the owner, the company’s CEO. I cannot say that with innovation, they will be
developed. It might not work as well. If everyone innovates, no one will do the conventional thing.
That is not good either. Therefore, I think everything needs to be balanced. With people who have the
store and selling things like that, that is it. Those who innovate or do the development, from my
perspective, is the one who finds a new method or new product, right? I found drywall with
honeycomb core inside. It is hard to socialise. If you succeed, there is a possibility that you cannot sell
them. You researched for one year, you promoted from one year, then automatically, you need two
years to sell the innovation, while in those two years, you keep paying, right? If you keep innovating,
but in the end, the sale is not as big as what has been expected, that is the loss. It is like a 50 50 chance,
right? That is actually a probability. However, for some other people, the risk is too much. Innovation
in finding something new is very risky. Just the company is objective in deciding whether the company
wants to take this risk or not with a high impact on the company. For a 1000 billion company, 1 or 2
billion is small. However, for a 10 billion company, therefore, 1 billion is something big. So, that is the
flow of how you are selling innovation. There are three risks. Firstly, when you are first doing research,
whether it is succeeded or not. If you have succeeded, you have to promote, whether the promotion
is succeeded or not, and the last one, you have to sell it. Selling things has a risk that must be aware
too. It is a triple risk. It, then, depends on the company whether they want to take this triple risk or
not. The impact must be considered as well if three of the risk is not succeeded. Everything is a
probability. The higher the risk, the result is usually bigger. Innovation research that I did has a
boundary. If I am asked whether this is innovation or not, I can say, ‘Yes, I believe.’ Nevertheless, I do
not know when it is. It is more about the long-term. Like, for example, precast. No one did not want
to do precast, but now everyone uses it. How long do you think the process is? Ten years. There was
not any gypsum. The first company that introduces gypsum is GRC calsiport. People used to think that
gypsum is GRC. The first time GRC is introduced, it is hard in promoting it. GRC is made of cement, and
mostly gypsum. Gypsum particle is made of Gypsum material. However, GRC is different since it is
made of fibre. People like to compare Gypsum and GRC, while it is actually different. So, they have to
compete that way. Now, people know about GRC spec. People who build in a moist area is not using
gypsum anymore. Now, it looks good. However, if you want to know when GRC company is built. It is
built in the 1990s. They try really hard for the process of introducing GRC. Now, if you are asking me
the cash flow for my drywall, it is still red, still minus. When it will be plus, it depends. I do not know
too because I am still trying too. I am still learning construction and the other material that I am going
to sell, other material that I am still working on. Some of my construction projects have applied drywall
even though the cash flow is still red, which is covered with my other sale. That is the impact.

Interviewer:
OK, so all answered has been asked and thank you for your time and willingness to be my
interviewee.
Interview Transcript with IO-05
INTRODUCTION
Q1. Introduction

Interviewer:
Good Morning Sir, thank you for your time and willingness to be the respondent for my interviewee.
So, in the beginning, I want to introduce myself. My name is Angelia. I am a postgraduate student
at the University of Leeds taking International Construction Management and Engineering
Programme. At this moment, I am doing a dissertation which discusses “Open Innovation”. Before
starts, I would like to ask you to read the Informed Consent Form to know your rights in this
interview, how this interview will be done, and what will happen after. The document will be given
in two languages, English and Bahasa, which two of them have the same information. After
agreeing, I hope that you sign on the form.

Interviewer:
Thank you, and this form is for you. Prior to start, I would like to ask for the consent for recording
this interview to avoid misconception while analysing this interview due to missing some important
details.

IO-05:
OK.

Interviewer:
If there is a question that you are not convenient, you can refuse not to answer. This interview is
only used for the dissertation and will not be published on any platform. It will also be written as
anonymous to mind the credential.

INDIVIDUAL AND COMPANY’S PROFILE

Q2. Individual and Company’s Profile

Interviewer:
As the beginning, I would like to ask what your position in your company is?

IO-05:
In this company, my position is Project Manager
Interviewer:
What is the grade of the company? Is it classified as large, medium, small, or micro company?

IO-05:
I think my company is classified as a medium-sized company if I am not mistaken.

INNOVATION
Q3. Innovation Performance

Interviewer:
OK, now, for the first topic, I would like to talk about innovation in general. Innovation is generally
a new finding which is different from the existing. For example, if you want to build an earthquake
resistance building, if you usually use timber as the main material, maybe you can start using
bamboo, which is stronger than timber.

Interviewer:
I would like to ask, what does “innovation” mean to you? What is your opinion about that? Is it
something important or maybe you have another opinion?

IO-05:
I think innovation is important, especially for the company’s portfolio. For example, within five years,
ten years, its policy will be affected by its research and development.

Interviewer:
Have your company done any innovation?

IO-05:
Yes, as I remember, I have done innovation in the construction phase. I think most contractors did
innovation in the construction phase. It is about how to improve efficiencies, such as equipment,
human resource, more affecting working efficiency and effectivity. Because we are mostly working in
building construction. The building is typically depending on the number of the floor. So, it is based on
the implementation.

Interviewer:
Can you give me an example of innovation that your company has done?
IO-05:
It is usually in the construction phase. Based on my experience, for example, material planning.
Therefore, innovation does not have to be all systemised automatically. However, for the example of
the implementation innovation, the use of material. We innovate on how to reduce the use of
material. Because the previous material can affect the environment. That what has been discussed
lately, about green construction. About usage, for example, we bought ceramic material to avoid the
waste of half-cut ceramic. It is part of innovation. We have to calculate them carefully to reduce its
waste. If it is calculated well, we can plan on what to do with the half cut. Also, from the
implementation phase, we should design by considering how to decide the main structure. Will it be
made of concrete or steel? The innovation, I think, is more on the implementation phase. It is about
how to implement planning to be optimal because some projects that we did was the government
project, which was crucial in time. We should think of the most optimal way, the balance between
cost, time, and quality. To what value should be increased, but it is not increasing the cost.

Q4. Innovation Success Rate based on Iron Triangle

Interviewer:
Does it affect the project’s schedule and time completion of the project?

IO-05:
Well, that is the issue. There is often a miss between planning and implementation, which means,
people who are designing it is not 100% looking at the site condition, for example for the area which
is hard to be reached. They think it is almost the same as the city. However, in reality, it is not. In the
end, we need to do optimisation, and it affects the additional cost to transportation and the
procurement of the material.

Interviewer:
How about the cost?

IO-05:
The cost is increased because of that different view between those who plan and those who
implement.

Interviewer:
And it also affects the project’s schedule?
IO-05:
Yes, I think the most important now is, it needs to be well-planned. What makes it often failed is that
it is not well-planned, so in the implementation phase, it takes much time. For example, usually, the
tender for a government project is at the beginning of the year. If it finishes in January to February, to
the 4 or 5-floor building, especially for academic purpose, university, lecture theatre, and laboratory
are easy because if the target is nine months, it can be finished within nine months. However, if the
tender is missed which takes four months, and the construction can start in April, that moment when
we need optimisation where the target is nine months, and we need to finish it in nine months minus
the tender time, four months. Thus, we only have five months left. That is when we need innovation.
For example, from the equipment, method, which we used steel or concrete before, now we have to
use precast. The innovation is more to the material, I think. Therefore, it is about our incapability in
choosing the material. How we know the ability of our resource. Because those who are likely to miss
were also when the material arrived, it turns out that their resources are not competent to the new
innovation, so there needs to be a knowledge sharing. That is really consuming time. Hence, we have
to innovate, which material they understand, and material which can support the acceleration. Now,
the trend is precast. This moment, the material which is usually used is concrete or steel. However,
due to this issue, we have to innovate what to do with the concrete and steel to accelerate the project.
Therefore, because of something, in the beginning, we must innovate. It really influences our decision
to do innovation.

Interviewer:
In accordance with quality, is it generating better quality?

IO-05:
Luckily, I have learned value engineering previously. It is emphasised that value itself equals to
function divided by cost, f divided by c. We tend to reduce cost without reducing function. Instead,
we are increasing the function. So, based on my opinion and my experience, do not reduce the cost
by reducing quality. It is not allowable, particularly in public project. I do not say public construction
company, but a public project. Reducing quality is not allowable. However, modify, or optimisation
with value engineering to reduce cost is allowable. Very allowable. However, it should meet the same
quality. For me, the principal is, the quality cannot be changed because we know the cause and effect
right, how and why. If we want to reduce this part, we have to look at the option. If we want to
accelerate, maybe we have to add more cranes. The consideration of adding this crane is cost. Is using
formwork is better than we are using precast concrete? Precast can also reduce the time to one
month. Therefore, we can reduce the cost of labour. That is when we found the most optimal solution.
Thus, the quality is still the same, but the cost can be reduced through that optimisation

Interviewer:
So, regarding time, cost, and quality, do you think this innovation is a success?

IO-05:
Yes. Also, it helps the human resource to share their knowledge. So, as I know, in the project, there is
knowledge management. Everything innovated should be able to be shared. Because the barriers itself
in construction is in the speed of sharing, which people are too passive. The technology has developed,
but people who work on the site is not ready yet. It often happens based on my experience since it is
different from the city and those in remote area. If we are talking about people in the remote area,
the ability of human resource is different from the people in the city.

Interviewer:
I want to ask whether you have any less succeed innovation or not?

IO-05:
Hmm… Yes, we have.

Interviewer:
Can you please tell me the experience if you feel comfortable?

IO-05:
Well, I think the problem is on human resource. That is the first. Secondly, the changing condition. So,
for example, we are doing the pre-design, if we are working in a public project, we are always rushed
by audit matter. Maybe, in a private project, this thing not exist. If we have a specification change with
the same quality, it is sometimes questioned by the audit team. It can be an innovation, but it is
dangerous because it can produce a claim. It is not accommodated in public project. The failure in
innovation is sometimes assessed compared to the same type, and even the same brand. The issue
sometimes occurs in technical specification even though the result is the same. That is the issue in a
government project. In the private project, the problem is just that human resource’s knowledge. That
is the barrier. The most thing that happens is we have plan something, but the worker is not meeting
the competence in doing our plan. They do not meet the competence, so the work is failed. Like my
previous example, changing from concrete to steel is not easy. It needs a breakthrough to the
government and makes sure that it will meet the requirement. ‘No, it is different, concrete and steel
are different, the price, and so on is different’. It seems that we want to make more profit with
innovation. The mindset is not the same; value engineering of the audit and accountant and value
engineering of the engineer that we cannot sacrifice quality. It is different from them. They cannot
sacrifice cost and specification. That what is still miss between economics and engineers.

Q5. Division in charge of Innovation

Interviewer:
OK, so, is there a division which is in charge of those innovations?

IO-05:
No, we do not have. Just based on people on the site, by case.

Interviewer:
Why there is no specific division which is taking care of this innovation?

IO-05:
Hmm… I think it is not necessary since, without the specific division, we can still innovate. However,
the disadvantage is that we might not be able to do massive innovation. I think the innovation result
will be better if there is an R&D division since they research them and keep modifying them.

INBOUND OPEN INNOVATION

Q6. Inbound Open Innovation Performance

Interviewer:
Now, as a question regarding innovation has been all answered, I would like to discuss the more
detailed topic about open innovation. Firstly, I would like to ask whether or not you have heard
about the term ‘Open Innovation’?

IO-05:
Yes, I have ever heard that term, because one of my friends that are doing a PhD, he focuses on
knowledge management.

Interviewer:
What do you know about it?
IO-05:
That is a collaboration, right? When is a company innovating with its external stakeholder, right?

Interviewer:
Yes, so, now I want to show you a video about open innovation to give you a brief understanding of
it.

[Showing Video]

Interviewer:
So, for a very brief explanation, there are two aspects of open innovation. Inbound and Outbound.
Inbound is when the company is doing the open innovation, but they are receiving the innovation
from the external stakeholder, while outbound is when the company is doing the open innovation
by giving the idea of their innovation to the other company, or it can also be called
commercialisation. For this dissertation, I am highlighting inbound open innovation because it is
more general and more popular instead of outbound open innovation. Many people are having a
paradigm of not sharing their innovation. What do you think of open innovation?

IO-05:
Well, I think open innovation is good. So, there is a value between findings and research that is needed
in the industry. It is often missing too. It is often not connected. I had an experience with this. I found
material, but this material is not in-line with the needs. For example, I was making a porous concrete
and porous asphalt. However, the current need is solving the flooding issue. Then, people asked me
what is the purpose of making a porous concrete and porous asphalt for road pavement? Firstly, I do
not know the road capacity. I only worked with industry and manufacture for concrete, the precast,
so, I do not know the site condition. On the other side, I should see the impact on civil engineering,
for example, geotechnical. Why I should make porous in a pavement, while the main purpose of
asphalt is to cover the surface. By making porous, it opens the pavement and absorbs anything inside.
In the end, it cracks the soil component and structures which water content has optimal. That what is
usually miss between needs and research. Now, from what I see, there are some developer that has
created research and development as an institution, they have a contractor in IT, and some have a
university, or if the company wants to support education, especially public school, there should be a
continuous contribution in a way what the problem is. For example, a fresh graduate student who
meets a professor with high knowledge, which is by chance, that professor is also working with
industry. On the other side, that industry is not known with that student, or how far the researcher
has reached, right? They have their own secret. That is what we should find. However, if we are talking
about a large-sized company, it is easy. They have opened what they should innovate, what the
disadvantages are. The issue which often occurs is, how they share the innovation after they found it.

Interviewer:
The one that you were previously talking about asphalt. So, quality is reduced? Has it been used?

IO-05:
Because the quality is reduced, we have not used it even though the research is being paid. That is
what is said, what the company wants to develop or improve, is different from what they are needed.
For example, an electric car, until now, it is hard for us to share that it is a need, right? Moreover,
there is a culture issue too, and we also need the facility for it. With the shifting to the electric car, are
we ready yet? Same with precast. Are the people on the site is the people who understand precast?
Also, for several materials, has it complete? If we are saying in the town, it might be just a normal
thing. However, how about in the village? So, I think open innovation is crucial because it can be
something good, but if it is failed, it can produce something bad. We have to minimalise them through
collaboration. Collaboration with a research institution, such as [Name of two research institutions],
practitioner institution or manufacture. However, we have to do the issue analysis first. Sometimes, I
want to produce this, but the problem is, sometimes the issue that occurs on the site and research
discussion is not connected, for example, we are building construction, we want to make one building
in university, and we want to make a solar panel. It is hard because, in Indonesia, there are not many
buildings which used solar panel even though it has been publicised and shared since 2009. Moreover,
renewable energy which has been shared before 2009 is just started to be promoted again a couple
months ago, the one that uses windmill. Why is that do you think? There is an issue in adopting culture
too, and sometimes politics.

Interviewer:
How about the succeed inbound open innovation? Do you have experience in that?

IO-05:
Hmm, as I remembered, I think I have not done another innovation. It is hard to do those innovations.
Since we do not have the R&D division as well, we do not have time for doing it. Moreover, as I said
before, I do not feel that Indonesia is ready to do a large innovation like that. Because the scale of
inbound open innovation must be bigger than just the usual innovation. Also, as I said too, there will
be a huge culture change. I think in a developing country, particularly in Indonesia, they are not ready
for it yet, especially the human resources, the worker, the labour, and the company itself.
Q7. Division in Charge for Inbound Open Innovation

Interviewer:
So, there is no division which takes care of this?

IO-05:
No.

Q8. Interviewee Perspective of Inbound Open Innovation

Interviewer:
What do you think is the benefit of Open Innovation if you are looking from the video?

IO-05:
Well, I think there are a lot. For example, maybe if it is the innovation regarding work method, it can
reduce work. If it is the innovation about safety, it can reduce failure. Looking from the value
engineering, as I emphasized previously, it is more that the function is better even though the cost is
still the same or reduced. However, I think why the construction company has not applied this
although there are many benefits, because it needs cost, right? They are comfortable with what has
already existed. They have no portfolio such as this company especially medium, small, or micro-sized
company which only do the house construction. Maybe if it is a high-rise building, road, bridge, they
are more developed. However, for the small-sized company, I do not think that they have vision and
mission. I think it is more about management, whether the management wants to give benefit to the
company or not.

Interviewer:
What do you think is the capability of a PM in applying Inbound Open Innovation?

IO-05:
Firstly, what a PM must understand is knowledge management. How that person can bring the
phenomenon or issue to innovation. For example, when PM is handling a project, PM has to see
phenomena such as failure or late issue as a potential to do the innovation, not an adverse failure.
That is the practical innovation. However, if we are talking about innovation that is a start in research,
that research should be based on the real phenomenon too. Not only just researching thing while the
purpose itself is not there. Because the purpose of business itself is how to make efficiency, but it is
also effective. Therefore, it meets national needs. We are now focusing on mass accommodation,
shared building, such as one building can consist of five company, working space system. It is more to
environmental impact, human impact and looks that the issue is a potential for innovation. If it cannot
be seen, then it is hard to innovate because they do not have knowledge management.

Q9. Interviewee’s Desire to do Inbound Open Innovation

Interviewer:
After listening about the concept of open innovation, will you do open innovation?

IO-05:
Yes, I think we will apply it. Not only in the contractor but also the owner or the client. Now, green
building or sustainable infrastructure is being popular. If that concept is applied as the construction
concept, there should be innovation for it. It has to be supported by the stakeholder too, not only the
contractor. The knowledge sharing or knowledge management is not only happening in the
contractor, but it also happens in the stakeholder too.

Interviewer:
OK, so all answered has been asked and thank you for your time and willingness to be my
interviewee.
Interview Transcript with IO-06 and IO-07
INTRODUCTION
Q1. Introduction

Interviewer:
Good Morning Sir, thank you for your time and willingness to be the respondent for my
interviewees. So, in the beginning, I want to introduce myself. My name is Angelia. I am a
postgraduate student at the University of Leeds taking International Construction Management and
Engineering Programme. At this moment, I am doing a dissertation which discusses “Open
Innovation”. Before starts, I would like to ask you to read the Informed Consent Form to know your
rights in this interview, how this interview will be done, and what will happen after. The document
will be given in two languages, English and Bahasa, which two of them have the same information.
After agreeing, I hope that you sign on the form.

Interviewer:
Thank you, and this form is for you. Prior to start, I would like to ask for the consent for recording
this interview to avoid misconception while analysing this interview due to missing some important
details.

IO-06:
OK.

Interviewer:
If there is a question that you are not convenient, you can refuse not to answer. This interview is
only used for the dissertation and will not be published on any platform. It will also be written as
anonymous to mind the credential.

INDIVIDUAL AND COMPANY’S PROFILE

Q2. Individual and Company’s Profile

Interviewer:
As the beginning, I would like to ask what your position in your company is?
IO-06:
I am here as the head of the R&D Division.

IO-07:
I am a member of the R&D Division.

Interviewer:
What is the grade of the company? Is it classified as large, medium, small, or micro company?

IO-07:
The company that we work is large-sized

INNOVATION
Q3. Innovation Performance

Interviewer:
OK, now, for the first topic, I would like to talk about innovation in general. Innovation is generally
a new finding which is different from the existing. For example, if you want to build an earthquake
resistance building, if you usually use timber as the main material, maybe you can start using
bamboo, which is stronger than timber.

Interviewer:
I would like to ask, what does “innovation” mean to you? What is your opinion about that? Is it
something important or maybe you have another opinion?

IO-06:
For us, we are only doing the job. According to our company, the most important for this moment is,
there are many things that we can develop. Eee… can you pause for a moment? I am looking for the
powerpoint.

(IO-07 is opening the powerpoint)

IO-06:
We see that the reason for R&D existence is due to the happening phenomenon. So, usually,
contractor or those who are working on the site often think that they have done the right work. Right
is different for every people, right? The problem is, many think that they are doing the right work,
underestimating the work. Not exactly underestimating, but they think this is an easy job. Then,
sometimes if there is a mistake, it is ok to repair it again, and then install it again. The worst is, those
who think himself as the smartest. He considers himself as very smart until something small is often
misses. If one procedure is forgotten, it can be hard to the step after. Other people are easy to be
satisfied with their job. ‘I think this is enough because maybe the customer is not complaining,’ so he
thinks that way. Therefore, we do not want to be like that. There is also a company who has a low
mentality. That is why we need a standard which is referring to quality because we have quality
assurance. To assure that the products are delivered on time to the consumer. There is a system,
method, supervision, and research. Improvement research is in case of doing the effective, efficient
work with guaranteed quality in civil, ME, and infrastructure. From the improvement research, it is
divided into several steps. We start from ‘sumbang saran’, gather an idea, and brainstorm. Regularly,
we ask people to give us a recommendation to what can be improved, and anything. It often comes
from the site. For example, we meet these people, they give a suggestion, and it is put in the ‘sumbang
saran’. Based on that, we choose some that can be applied and some that need times to be tested,
and then it goes to QCC, quality control circle. Some do not need any more modification, while some
need. Adding this, adding that, adding this, adding that. We did the trial over and over again until it is
succeeded. After it is succeeded, we have one more step. We standardise the succeeded equipment.
We test in our all unit in all branches using the equipment that has been standardised. After that, we
head to patents. We go to DJKI so we can get hmm…

IO-07:
Patent.

IO-06:
Yes, so this equipment can be stolen or…

IO-07:
copied.

IO-06:
Duplicated or imitated. Besides, taking care of patents and administration, we will produce the unit
based on the order, and we will distribute them. That is the workflow of this research and
development. Has my explanation answered the question of why we need research?

Interviewer:
Yes, it has. Since you are in the R&D division, you must have done innovation, right? Can you tell
me the innovation that you have done before?
IO-06:
Oh, here is the recapitulation of our equipment that we have research and we have known, so it is our
standard, we have already got the patent for some equipment, such as Alat Ukur Bidang Miring [Slope
measuring instrument].

IO-07:
Here is our patent certificate. So, this is the slope measuring instrument. It is started from the issue
on the project. No equipment can be used to measure the floor slope, in ceramic. Through this
research, the worker is doing research, and create an instrument which is simple, effective, and
efficient in installing a floor ceramic so that it can produce the right slope. So, here is why this
instrument is made, a slope measuring instrument. This equipment is done through research, not
automatically found. So, they try this equipment. For example, acrylic, they research, they try the
slope using this instrument, and they tried to install the ceramic. Hence, it can be used for checking
and installing. You can see that there is a slope percentage. It is easy to be applied in the site because
you only need to put it, simple. You can know what the slope is while installing it. For example, the
expected slope in the bathroom is 2%, then we can immediately know that it is 2%. In the airport, for
instance, or in the yard, we use the former design of slope measuring instrument. After we try, we
evaluate. ‘Oh, it is too big,’ so we need to make a smaller and the lighter one. Thus, we resize them,
and we make it smaller to make it easy to carry, we upgrade. If we use the big one in the small
bathroom, it is hard. That is why we make the smaller one. The smaller equipment can reduce the
cost, but the function is still the same. It was very big. Now, it is very small. We tried to apply it again,
trial again, does it function well? After we tried, it worked. For example, the slope is 1% in the
apartment. It will be easy by this innovation. This equipment is tried in the apartment and all project
that we are working right now, because we have many units, in the apartment, house, house-shop. It
is succeeded and makes work easier, so we reduce the defect. The worker is happier because the job
is easier. If by using this equipment, the worker feels not convenient, they give a testimonial if they
like this innovation. This is the big one, and this is the small one. We tried in the bathroom, what is
the process in using this. We have tried this in our project. There is also a worker’s testimonial ‘how
to use this equipment?’ ‘I think it is easier than the old method using a hose, and this is faster’. We
have never thought of using easy equipment. We used the yarn, but now, we are not using it anymore.
Just make a sign on the floor, so that we can check while working. After this, our research is not
stopping on a standard only. After this has been standard, our innovation is brought by our leader and
winning the innovation competition. Then, it has to be applied to all of our projects. Then, by our
leader, he asks us to patent this. After patent, our innovation will go to national or even international
standard. Because it needs to be checked whether someone has ever found this or not. Also, it took
more process, two years, we correspondence with checking team and they are those who are
graduated in Europe or America. Then, we succeed in the patent.

IO-06:
Yes, we have received the patent certificate from DJKI, Dirjen Hukum dan Kekayaan Intelektual
[institution which managing patent]. This is the certificate of the slope measuring incline and this
certificate is active in 10 years. So, in 10 years, this equipment is ours. After ten years, it becomes
anyone’s equipment.

IO-07:
It has actually recognised by the country, that this equipment is ours, from our research

IO-06:
Then, the second one,

IO-07:
Is it this one?

IO-06:
Yes, we have one more that we have already got the patent. The method to reduce the crack in the
plaster. So, from the problem, they research and do the trial to find the right method to reduce the
crack in the plaster.

IO-07:
This time is a method. The previous one is equipment. So, there is a work method that we researched.
This research is based on the issue that occurs on the site. We improved, we did the research. What
happened on the site is that the wall is crack. So, we have to think of how to make the wall is not
cracking, especially in the connection part, which is easily cracked if it connected to the structural
column. That is the point of this method. Then, what is needed? It needs galvanised wire, nails,
concrete with the mortar, shovel, and bucket. These are easy to find on the site; this is a simple and
easy thing. How does this work? If there is a connection between the structure column and the brick,
we put this galvanised wire that has been shaped like this in here to avoid the crack in the plaster. It
often happens, right? Also, in this part, it can also be applied. So, in the structured part, we try. We
try in the plumbing and electricity. That is ME. Therefore, it avoids the crack. This has been applied to
many of our projects. So, the requirement to be standard is that it needs to be applicable to all of our
company. We have to see the result, and it needs to be succeeded. Then, it is standard. Being a
standard is what have we said previously. Not only in the company but also national and international.
Then, they found out that this equipment has not existed and we got to patent that this is our
innovation, the work method. Because we are looking at the quality and the result. Moreover, it is
shown that through the patent, the innovation that we found, the innovation that we did, tried, and
research does not exist in the world. That is why we got the patent.

IO-06:
It is easier in the equipment instead of a method, but besides, there is also material. There is many
materials now, such as the material of the pipe. It is usually made of stainless, we do not need to use
stainless, we can just use normal pipe, cheaper, faster, and the most important is, it has the same
quality. It can be like that, for the material.

Q4. Innovation Success Rate based on Iron Triangle

Interviewer:
Does it affect the project’s schedule and time completion of the project?

IO-06:
Yes, it is yes. Of course, yes. If we do not use this innovation, it can make the project’s schedule longer.
Because we cannot hand the work on time to the client because it is crack. So, we have to repair it
again. It will increase the cost and time.

Interviewer:
So, regarding time, cost, and quality, do you think this innovation is a success?

IO-06:
Yes, I can say. We have tried to all of our projects, and we have got the patent.

Interviewer:
I want to ask whether you have any less succeed innovation or not?

IO-06:
Yes, we have.

Interviewer:
Maybe if you feel confident, can you tell me the experience?
IO-06:
The less succeed… maybe the precast for the non-structural column. Actually, I cannot say that it is
not succeeded, but it is not yet succeeded. It needs process. So, we started this innovation in 2015.
Until now, it has not finished yet. We are still researching them.

IO-07:
Yes, we are going to continue the research again. If we see, this is the powerpoint they made in 2015.
So, before making a presentation, we have 1 or 2 years for research. So, this innovation started in
2013. We want to make the precast non-structural column. If we are talking about the structural
column, beam, plate, wall, stairs, there has been the precast one for it. However, I have never heard
that there is a precast non-structural column.

Interviewer:
So, the reason to that less succeed innovation is due to lack of knowledge about the innovation?

IO-07:
Actually, I cannot say because this not yet succeed, innovation is neither in progress nor stop. I can
say that it is stuck; it is stopped for this moment. The last research was in 2015. So, it has been four
years, four years we stuck. If we want to say failed, it is not yet failed. It can be continued. However,
in this innovation, we found something, we found idea, design, we created, we did trial and ‘Oh, it is
failed,’ we repeated the process over and over again through modification, we made the equipment,
we tried again, and it is failed again, that is the process until we found the solution, the result. That is
the step. When we failed, we have to try again. Maybe, there is no less successful or failure in
innovation. It is not yet succeeded. There will be a result one day. For example, drone. There was not
any drone, now there is. It is then developed so it can lift one passenger. It is then kept developing. If
you want to say that the drone is stopped developing, you cannot say that. It can be developed again,
right? Now, there is one passenger. Maybe next, time, it can lift four passengers. Innovation is not
about not succeeded, just not yet succeeded. It needs process, so since the beginning, since 2015, it
has not done yet.

Q5. Division in charge of Innovation

Interviewer:
OK, so, is your division taking care of the whole innovation? Include the research?
IO-06:
There is a team who does the research, called QCC. They are the one who do the process. Also, it is
included in our division.

INBOUND OPEN INNOVATION

Q6. Inbound Open Innovation Performance

Interviewer:
Now, as a question regarding innovation has been all answered, I would like to discuss the more
detailed topic about open innovation. Firstly, I would like to ask whether or not you have heard
about the term ‘Open Innovation’?

IO-07:
Not yet.

Interviewer:
OK, so, now I want to show you a video about open innovation to give you a brief understanding of
it.

[Showing Video]

Interviewer:
So, for a very brief explanation, there are two aspects of open innovation. Inbound and Outbound.
Inbound is when the company is doing the open innovation, but they are receiving the innovation
from the external stakeholder, while outbound is when the company is doing the open innovation
by giving the idea of their innovation to the other company, or it can also be called
commercialisation. For this dissertation, I am highlighting inbound open innovation because it is
more general and more popular instead of outbound open innovation. Many people are having a
paradigm of not sharing their innovation. What do you think of open innovation?

IO-06:
Oh, we have one that joined with the manufacturing, we have done them, with a company called
[Name of the manufacturing company 1]. We, with [Name of the manufacturing company 1], make a
material, damp-proof aggregate layer. Damp-proof aggregate layer is for the plaster that is applied to
the wall in order to anticipate the groundwater goes up to the building. There is what is called by
damp-proof layer material. Then, we give a colour, red. For example, if there is a red colour in a
building, we know that the damp-proof layer from us has been applied. We made them in 2007-2008.
With the other company, I think damp-proof layer aggregate is our only innovation. That is from the
material, damp-proof layer material. So, there is manufacturing which concerns about innovation so
that they can research for their own. There was a time when we used their research. The point is, they
are selling, and then we are buying. However, I do not know whether it is continued or not, the patent
and everything. So, there is no legalization whether is it us collaborating with [Name of the
manufacturing company 1].

Interviewer:
What triggers you to do those inbound open innovation? I mean, you have your research team that
might be able to do that. However, why do you have to collaborate in doing that innovation?

IO-07:
Since it had been approximately 12 years ago, we have no purpose in doing our research with the
research facility. This R&D division has not been established yet. The one that has a research facility is
manufacturing. What I am trying to say is, that is the manufacturing that is concerned about the
research. So, we collaborate like that, in inbound open innovation.

Q7. Inbound Open Innovation Success Rate based on Iron Triangle

Interviewer:
Does it affect the project’s schedule?

IO-06:
Damp-proof layer material is actually the mixing of cement and sand 1:3, one cement and three sand.
It can be done on the site actually. We can make it by ourselves. Contractor or the worker can make
by themselves. The innovation that we did with the [Name of the manufacturing company 1], we made
the instant one, in a package which consists of cement, sand, and small aggregate. In the site, we only
need to pour them out, gives some water, and done. So according to time, it is not giving much effect.
If we want to know whether the damp-proof layer aggregate has been applied or not, we only need
to look at the red colour. Then, if the damp-proof layer aggregate is mixed with the other material,
the colour of the material is changed. It means that someone mixed them to keep the same
composition. For example, if the red colour is really red, it means that it has perfectly applied, well-
applied, no reduce in aggregate or mixing. However, if the colour has changed, it means that there
has been mixed. So, we can take faster action. So, if you are asking about time, it is not affecting that
much.

Interviewer:
How about the cost? Does cost elevate or not?

IO-07:
For the damp-proof layer material, we are talking about quality. From the point of view of time, it is
the same. About cost, it is a bit expensive. So, the mixing that is used to 1:3, we make the instant one,
just mixed them with water, we can control the colour, we can monitor them to reach the quality.

Interviewer:
So, can it consider succeeding in terms of cost, time, and quality?

IO-07:
Yes, through the quality which is getting better.

Interviewer:
Do you have any experience that is less successful in doing this inbound open innovation?

IO-07:
Hm… I do not think that we have the other innovation collaboration with the other company.

Q8. Interviewee Perspective of Inbound Open Innovation

Interviewer:
What do you think is the benefit of Open Innovation if you are looking from the video?

IO-06:
The benefit? I think because we do not have the resource so that we can get support. However, we
are hampered by the facility. Through that open innovation, we can be supported by the competent
supplier or producer, so the expected result can be reached. We did not have the lab, the material,
but they have. So, they need us to because we are the one who applies to the site. The problem is in
us, based on the problem that we face. That product is expected to solve the issue in the future. So,
they have the source, and we have the idea. Oh! We have one more with [Name of the manufacturing
company 1], in 2012. Still the same, material, but not damp-proof layer. The material is aggregate, but
we can just put in the wall, and it instantly creates a relief. However, I do not really remember what
the type of the material is because I was not really involved in it. That is 2012. The relief was made of
an aggregate, which is a collaboration with the [Name of the manufacturing company 1]. However, it
was stuck too. We confused on how to patent them because it is more like a special case, just custom.
‘Oh, we need this.’ Also, the [Name of the manufacturing company 1] accepted. Because [Name of the
manufacturing company 1] itself like to innovate, open innovation.

IO-07:
There is another one, [Name of the manufacturing company 2]. [Name of the manufacturing company
2] is roof manufacture. However, I do not really remember what the name is of our innovation. Since
[Name of the manufacturing company 2] is roof manufacture, they are our supplier for roof material.
However, this time, they are selling to us… Not selling, but we are doing together the full system roof
to make the room is more comfortable because there is a system which is good at insulation. There
was insulator in this full system so that it can heat the building underneath. We did it together, but
only one house because the costs suddenly turn expensive, so we cannot produce. That was in 2011.

Interviewer:
However, does it faster the project schedule?

IO-06:
They are selling, and they innovate the full system from the roof structure, the roof tile, the
construction, it is full system from [Name of the manufacturing company 2]. We cannot do that. The
cost is being expensive. With the combination from full system roof, it is expensive, but the roof quality
is good. However, the full system makes it expensive.

Interviewer:
Why do you think many private construction companies are not applying inbound open innovation
since you were saying that this is important?

IO-06:
Coordination between companies is hard. Coordination, different interest. If we are talking about
open innovation, both companies need to have the same interest. That is the hard part in coordinating
between two parties right. It needs time, needs a discussion.

Interviewer:
What do you think is the capability of R&D in applying Inbound Open Innovation?
IO-06:
If we have one goal, and we have good coordination, we do not need to talk about capacity, right?
Win-win solution. It is between two companies. If the coordination is succeeded, we do not have to
confuse and think much about it, right?

Q9. Recommendation for doing Open Innovation

Interviewer:
After listening about the concept of open innovation, will you recommend other company to do it?

IO-07:
For another company, innovation is like wasting money. We are a good company. We can waste
money. However, other company, they do not want to waste the money.

Interviewer:
For the last question, which one do you think give the best impact between the internal innovation
and inbound open innovation?

IO-06:
Well, until now, I think it is still internal innovation. Because maybe we still confused with the inbound
open innovation one, about how to standardise and patent them.

Interviewer:
OK, so all answered has been asked and thank you for your time and willingness to be my
interviewee.
Interview Transcript with IO-08
INTRODUCTION
Q1. Introduction

Interviewer:
Good Morning Sir, thank you for your time and willingness to be the respondent for my interviewee.
So, in the beginning, I want to introduce myself. My name is Angelia. I am a postgraduate student
at the University of Leeds taking International Construction Management and Engineering
Programme. At this moment, I am doing a dissertation which discusses “Open Innovation”. Before
starts, I would like to ask you to read the Informed Consent Form to know your rights in this
interview, how this interview will be done, and what will happen after. The document will be given
in two languages, English and Bahasa, which two of them have the same information. After
agreeing, I hope that you sign on the form.

Interviewer:
Thank you, and this form is for you. Prior to start, I would like to ask for the consent for recording
this interview to avoid misconception while analysing this interview due to missing some important
details.

IO-08:
OK.

Interviewer:
If there is a question that you are not convenient, you can refuse not to answer. This interview is
only used for the dissertation and will not be published on any platform. It will also be written as
anonymous to mind the credential.

INDIVIDUAL AND COMPANY’S PROFILE

Q2. Individual and Company’s Profile

Interviewer:
As the beginning, I would like to ask what your position in your company is?

IO-08:
I am here as a director of R&D division.
Interviewer:
What is the grade of the company? Is it classified as large, medium, small, or micro company?

IO-08:
Hmm… According to the turnover, revenue, and our projects, my company is a large-sized construction
company.

INNOVATION

Q3. Innovation Performance

Interviewer:
OK, now, for the first topic, I would like to talk about innovation in general. Innovation is generally
a new finding which is different from the existing. For example, if you want to build an earthquake
resistance building, if you usually use timber as the main material, maybe you can start using
bamboo, which is stronger than timber.

Interviewer:
I would like to ask, what does “innovation” mean to you? What is your opinion about that? Is it
something important or maybe you have another opinion?

IO-08:
Well, I think innovation is important. As a construction company, many companies have not innovated,
but the company that I work in is really prioritising innovation. That is why we have a division called
Research and Development division. I do not think the other company research like we did. We used
to invite some companies to discuss a collaboration that I forgot about what. However, while we are
making the conversation and we talk, share, most of them always said ‘this is the first time we found
this kind of construction company which innovate a lot.’ Other company might do this, but
conventionally, not analysed and think carefully about its patent. We have taken care of the patent of
the innovation that we make so that people know ‘that is this company’s innovation’ while the other
company is not thinking that way. However, in my opinion, I think innovation is very important. A
company will not be survived if they do not innovate. Also, fundamentally, with doing innovation, the
company has the benefit. It can have a differentiate with the other company. Automatically, the
quality of the company is better, people look at our product, and they think it is good, and they trust
us more.
Interviewer:
Have you done any innovation?

IO-08:
Of course. That is what we are doing. This R&D division itself has been established for five or six years
ago. Innovation really takes much time. The findings itself take almost two years for each innovation
even though in the end, we are doing it in a parallel way or doing more than one innovation at the
same time. That is why, two years after this company’s R&D is established, that is the first time we
found the innovation that we can patent them. Maybe, you have been told before with Mr. [Name of
the other Interviewee, IO-06] and Mr. [Name of the other Interviewee, IO-07] about the innovation
that we did. There are two innovations which we have already got a patent; one from the equipment
and one from the method. We named the equipment one as ‘Alat ukur bidang miring [Slope measuring
instrument]’. While the method one, we named it ‘metoda untuk mengurangi retak pada plesteran
[method to reduce the crack in plaster]’. Oh! There is another one, which is called ‘Alat pengait kabel
[cable hook]. So, it is actually a normal plier, but we make them be able to hook three cables neatly
effectively. Normal plier is usually able to hook two cables only. If we want to hook three cables, it is
sometimes hard. More or less, the process to get the patent is similar to the slope measuring
instrument and method to reduce the crack in the plaster. Firstly, through the brainstorming, we got
the proposal and complaint. Also, then we take all the proposals and see which will benefit more. To
make the worker keep participating in this innovation, those who give a proposal and seems to pass
our first selection, we reward them. We score them, such as A, B, C, and that person also joins the
research. Actually, besides brainstorming, there is another source like, for example, there is a new
idea. Looking at the previous one, it feels like not efficient, and then initiative makes a new finding.
Alternatively, there is maybe a request from senior management. Then we trial, ‘oh it is not going well,
oh it is too big, oh it is too small’, we modify as good as possible to be able to be used as it is purposed,
neat, and the worker feels convenient to use it. Science language, we analyse them using fishbone,
and another analysing tool because the equipment is made to be used, right? After we found the fixed
result, that finding becomes our standard. We have to test it in all our project. While waiting for the
patent, another company is being able to use this innovation, but they have to pay for us.

Q4. Innovation Success Rate based on Iron Triangle

Interviewer:
Does it affect the project’s schedule and time completion of the project?
IO-08:
Oh, of course. It affects a lot. Usually, if we are only using the regular plier, it is hard, right? One time
try failed; it is hard. However, because of this innovation, they can work faster and neater. The client
will be happy if it is neat, right? We are happy, and the client is also happy because fundamentally,
one reason why we innovate is to make the work faster.

Interviewer:
How about the cost? Does it end up over budget or under budget?

IO-08:
Well, I think it affects the cost indirectly. I feel like it does not change much because we use the same
cable, not the special cable. Therefore, everything is the same, but for this, only the equipment is
different. So, it is not affecting the cost that much. However, if we talk about it indirectly, if the work
is done faster, of course, the cost is less too right. The worker does not need to be paid for that long
time because it is done faster if we are talking about the long-term. The client will also be happy with
the result, and maybe they want to use us again for the next work. I think if it is about equipment, it
will not affect that much to the cost directly, but more to the long-term. Different to material, which
target is more pursuing the cheaper project and hopefully it will also be cheaper in the long term.
Cost, time, and quality, all of them are connected. If the time is cheaper, automatically the cost can
be cheaper too, and the quality is expected to be better. However, it is proven that this is better in
quality. Because one of the purposes of this innovation is because of the complaint from the worker
‘it is hard, that is hard’. If we use this, as I said previously, the work is neater, right.

Interviewer:
So, can I conclude that it affects time and quality, but it is not influencing the cost?

IO-08:
Yes. Innovation itself have purposes of increasing the quality, lower the cost, or faster the time
completion. If it is not affecting anything, why we should innovate. Even though I am talking about
that, there might be some innovations that cannot be applied to all sites. However, as long it helps,
that is why innovation is made, right?

Interviewer:
So, regarding time, cost, and quality, do you think this innovation is a success?

IO-08:
Yes, of course.
Interviewer:
I want to ask whether you have any less succeed innovation or not?

IO-08:
Well actually it is not less succeeded, but it has not succeeded. We did some innovation, and then we
were stuck, and we have not continued again. Therefore, if I say less successful, it cannot be concluded
that way because we have not tried to the project, we are still researching it. If you are asking about
less succeed, we actually do not know. However, if you are taking about cost, time, and quality
parameter, we have not got a less succeed innovation because we kept doing trial and error. We tried
again and again, modified them until we succeed. Furthermore, regarding that, we patent every
innovation. After we patent them, it means that we have tried the innovation in all of our projects.
Even though it does not generalize all type of projects, but it is more or less has represented many
projects. So, we supposedly do not have a less succeed project from the point of view of time, quality,
and cost, because if it cannot be applied in all of our projects, it cannot receive the patent.

Q5. Division in charge of Innovation

Interviewer:
OK, so, does your division do all of these innovations?

IO-08:
Yes, these innovations are done under R&D division

INBOUND OPEN INNOVATION

Q6. Inbound Open Innovation Performance

Interviewer:
Now, as a question regarding innovation has been all answered, I would like to discuss the more
detailed topic about open innovation. Firstly, I would like to ask whether or not you have heard
about the term ‘Open Innovation’?

IO-08:
No, never heard before.
Interviewer:
OK, so, now I want to show you a video about open innovation to give you a brief understanding of
it.

[Showing Video]

Interviewer:
So, for a very brief explanation, there are two aspects of open innovation. Inbound and Outbound.
Inbound is when the company is doing the open innovation, but they are receiving the innovation
from the external stakeholder, while outbound is when the company is doing the open innovation
by giving the idea of their innovation to the other company, or it can also be called
commercialisation. What do you think of open innovation?

IO-08:
I think it is actually good because we might do not have all the equipment and resources. It is actually
might benefit each other. Sometimes, we want to make something, but we do not have the
equipment, but another company has, so we are exchanging our knowledge and resources needed for
equipment or human resources to do this open innovation. However, it seems a bit riskier if we
compare them with internal innovation.

Interviewer:
For this dissertation, I am highlighting inbound open innovation because it is more general and more
popular instead of outbound open innovation. Many people are having a paradigm of not sharing
their innovation. Have you collaborated with other institution or external stakeholder regarding
innovation?

IO-08:
Hmm… Our open innovation is what [Name of the other Interviewee, IO-06] has told you. What did
he tell?

Interviewer:
[Name of the other Interviewee, IO-06] told me about collaboration with Munir about damp-proof
layer aggregate, aggregate which can be applied to the wall and instantly make a relief, and full-
system roof.

IO-08:
Yes, that is it. Actually, there is one more when we are working with the roofing company. They have
an idea of installing the roof. So, they did roof pre-fabrication and then with the heavy equipment. It
is just needed to be lifted and placed over the building. However, we only did it once because the cost
is very expensive. Also, we do not patent it because we are confused about how to patent an
innovation, which is the result of collaboration. Is it patent by us, the roofing company, or both, we
still do not know. As I know, I have never heard of any company patent the innovation as a result of
collaboration, so we do not use that innovation anymore.

Q7. Inbound Open Innovation Success Rate based on Iron Triangle

Interviewer:
Oh, so, it is more expensive?

IO-08:
Yes, it is much more expensive

Interviewer:
However, if you are installing the roof that way, is it faster?

IO-08:
Yes, of course, because we fabricated it first. In the site, we only need to put it since we have made it
previously. It is like a parallel work.

Interviewer:
How about its quality?

IO-08:
Of course, it is better because we fabricate it in advanced, so it is calculated preciously. If I compared
it to the site-fabrication, the site-fabrication often does not match with has been calculated. If we
fabricated them in advanced, if it does not match the drawing, we can calculate it again. So, the
modification is based on calculation, not based on-site condition.

Interviewer:
So, based on those three aspects, is those innovations succeed?

IO-08:
Actually, the success of innovation is not only based on those three aspects. There are many factors.
The quality can be not as good as expected, but the client is happy with the result or for example,
those three aspects are good, but it is physically bad and client complaint. However, if we are talking
about those three aspects, I think it is less success because firstly, people who are starting company
has the main purpose of doing business right either it is construction company or not. Everyone wants
profit. Therefore, if, for example, it escalates cost that high, the company will lose some money when
the breakeven point is reached. Every time we are installing it, it cost more, we are installing it, we
have to spend much money. This is the method right, which needs to be done every time we have a
project. Secondly, I think it is less successful because I think cost, time, and quality are connected,
right. So, we have to balance those three. Even if it is not going better, at least it is not going worse.
Alternatively, even if one aspect is going worse, at least it gives a positive side on the other aspect.
The most important is balance. If you cannot find the balance, do not do it. I think that is open
innovation. We rarely do it, and we do not patent it as well.

Q8. Interviewee Perspective of Inbound Open Innovation

Interviewer:
What do you think is the benefit of Open Innovation if you are looking from the video?

IO-08:
Well, I think it gives many benefits. As I said before, maybe we have the equipment, they do not have
the equipment, but they have an idea. We can exchange the idea and resources which makes the
workers feel comfortable in using the new innovation, the quality of the work is better; it also creates
a differentiation. Now, at this moment, people said that being different is better. So, yes, I think open
innovation is good.

Interviewer:
Why do you think many Indonesian private contractor companies are not applying open innovation?

IO-08:
I think because open innovation is hard to be done, for example, we have to be ready in changing our
paradigm. If we want to change the paradigm, all people in the company from the highest to the
lowest position has to change. However, in fact, there are many rejections. It is hard to accepting
something new. In fact, many are inhibiting it from the worker because they are afraid that they will
lose the job. For example, we have an idea, and then another company has the resources, maybe the
worker in our company is afraid to be fired. That is the way they are thinking. ‘Oh! We do not need
them anymore. We can collaborate with other company to get human resource.’ That is why even
though there are many benefits, it is hard if the worker is not thinking in a long-term way.
Interviewer:
What do you think is the capability of the head of the R&D division in applying Inbound Open
Innovation?

IO-08:
The most important is that I have to be able to prioritise those three aspects. I think from the side of
an engineer, not from the point of view of a businessman, which the most important of those three
aspects of R&D is supposedly quality. That is the most important. It is, then, followed by time and cost.
However, the most important thing is, the quality needs to be good, and it has to be balanced. If it is
not balanced, the innovation will not be efficient. Besides, I have to do a good communication with
the external stakeholder. Keeping the relation. Therefore, innovation is not only done while planning
for innovation only but if it is possible, do it every time after the innovation because we might need
them one day or they might need us one day. Also, one more important thing, I have to ensure that
all of the members of R&D division are believing that we are going to innovate, and we are going to
be succeeded, including the justification of why we are doing that.

Q9. Recommendation for doing Open Innovation

Interviewer:
As the company who is doing the open innovation, do you recommend other private company in
Indonesia to do this Inbound open innovation?

IO-08:
Hm… I think I will recommend if the company has ready and it has to be socialised to all people in the
company to avoid confusion.

Interviewer:
As the last question, so between internal innovation and open innovation, which gives more
benefit?

IO-08:
Based on my experience, I think internal innovation gives more benefit because we are still confused
with the innovation with the other constitution. So, I think we will strengthen our internal innovation
until we understand how then we will do open innovation.
Interviewer:
OK, so all answered has been asked and thank you for your time and willingness to be my
interviewee.
Interview Transcript with IO-09
INTRODUCTION
Q1. Introduction

Interviewer:
Good Morning Sir, thank you for your time and willingness to be the respondent for my interviewee.
So, in the beginning, I want to introduce myself. My name is Angelia. I am a postgraduate student
at the University of Leeds taking International Construction Management and Engineering
Programme. At this moment, I am doing a dissertation which discusses “Open Innovation”. Before
starts, I would like to ask you to read the Informed Consent Form to know your rights in this
interview, how this interview will be done, and what will happen after. The document will be given
in two languages, English and Bahasa, which two of them have the same information. After
agreeing, I hope that you sign on the form.

Interviewer:
Thank you, and this form is for you. Prior to start, I would like to ask for the consent for recording
this interview to avoid misconception while analysing this interview due to missing some important
details.

IO-09:
OK.

Interviewer:
If there is a question that you are not convenient, you can refuse not to answer. This interview is
only used for the dissertation and will not be published on any platform. It will also be written as
anonymous to mind the credential.

INDIVIDUAL AND COMPANY’S PROFILE

Q2. Individual and Company’s Profile

Interviewer:
As the beginning, I would like to ask what your position in your company is?

IO-09:
I am the CEO of this company.
Interviewer:
What is the grade of the company? Is it classified as large, medium, small, or micro company?

IO-09:
My company is a medium-sized company

INNOVATION
Q3. Innovation Performance

Interviewer:
OK, now, for the first topic, I would like to talk about innovation in general. Innovation is generally
a new finding which is different from the existing. For example, if you want to build an earthquake
resistance building, if you usually use timber as the main material, maybe you can start using
bamboo, which is stronger than timber.

Interviewer:
I would like to ask, what does “innovation” mean to you? What is your opinion about that? Is it
something important or maybe you have another opinion?

IO-09:
Well, innovation is something important. I would like to answer in both points of view of contractor
and academic since I am a lecturer. In Indonesia, many practitioners from academic are doing
research. Since it is actually part of innovation. There must be a fundamental reason why people are
conducting innovation. However, how from those fundamental or theory, from research until
something that can be used which has not existed before. Many people know that doing research is
not only producing paper, journal, or report. They are also asked that their innovation applies to the
industry. That is why people are recommended to do innovation. If you found an idea, you have to be
brave in getting a patent for those innovations. The minister itself has also facilitated innovation. It
used to have a long queue to register the copyright, but now it is not. By the minister, the patent itself
is divided into some steps, from the simple one to the hardest one. Therefore, now, many people are
researching, even though some are simple. However, the misunderstanding is then they are
innovating not for innovation, but the patent. The awareness for innovation has started to exist. If we
see, entrepreneurs do many of innovation. For example, in the world of culinary. In the construction
industry, there are still a few companies innovate. Because I think one factor is cost. There are not
many construction companies has their research and development, and then they do research, and
then they innovate. There are not much, just some companies which have R&D. Therefore, innovation
in Indonesia is still an individual or small group, and even academic has just started a bit.

Interviewer:
Have your company done any innovation?

IO-09:
Innovation in a construction company is not always a product. Innovation can be a procedure as well,
work procedure. It is usually based on the foreman. The foreman asks to do something, and the worker
does it. However, in the construction industry, they have usually started. They are applying SOP,
Standard Operating Procedure, written. Then from that written SOP, they evaluate. So, they check and
re-check. They evaluate, and then the SOP is fixed. For example, the speed of concrete casting in the
high-rise building is 12 days in an SOP. Then, after evaluation, they think that they can shorten the
time. How to shorten the time? Maybe, oh, there is now a technology to install the framework. It used
to be installed this way, but it is changed to the other way so that the concrete casting can be faster
from 12 days to 11 days. Also, if they are getting used to with 11 days, they improve it to 10 days, nine
days, etc. Therefore, the innovation is not about the finding and then it is patent. People called PDCA,
Plan, Do, Check, Action. If we learn from TQM, total quality management, there is PDCA. Currently, it
is applied to make people know that everything they did need to be evaluated, need to be cycled to
get something better.

Q4. Innovation Success Rate based on Iron Triangle

Interviewer:
Does it affect the project’s schedule and time completion of the project?

IO-09:
Yes, SOP is a result of the evaluation that it is the most optimal that time. However, after we apply
them, we get to experience. Starting from a comment from the site, such as this can be fixed from the
simple on, maybe. Maybe how it is lifted, ‘Oh! It is used to like this, but it is wrong, we have to optimise
this.’ Then, we get the SOP that has been fixed. Therefore, it is not about a new product, but it is more
about the method, modifying, modifying, modifying.
Interviewer:
How about the cost? Does it end up over budget or under budget?

IO-09:
No, it is faster. The time is faster, so the cost can be reduced, more efficient.

Interviewer:
Does it influence quality to the better or, the worse?

IO-09:
It can be both negative or positive. Time can be faster, but can the quality worse? I cannot say.
However, what I can say is the quality must not be worse, because we have promised to the owner to
make this specification. The only thing that the owner wants to know is this specification. We cannot
faster the time but lower the quality. We cannot. If it is still the same with the required quality and
time can be reduced, then SOP can be fixed. In Indonesia, the labour price is very low. Also, the
project’s schedule can be faster. It means that the submission to the building owner is faster. The trust
of the client can also increase. For example, that project is funded by the client through the loan. The
faster the project is done; the interest will be low as well.

Interviewer:
So, regarding time, cost, and quality, do you think this innovation is a success?

IO-09:
Yes, I can say that

Interviewer:
I want to ask whether do you have any less succeed innovation or not?

IO-09:
It is possible to happen. That is why we need that documentation. SOP is documentation; everything
is written. If we found failure with this SOP, we have to fix them, and it has ever happened. Everything
we are doing needs to be evaluated to find the most optimal solution. Sometimes, the site condition
makes the innovation is not applicable, which then we have to evaluate again.

Interviewer:
What is the reason of that less sucessful innovation?
IO-09:
It is usually from human resource. Because human resource in Indonesia is paid daily. They are not
the worker of the company. They work for many constructions. If they come, they are paid daily, not
under the contract. Therefore, maybe, one day, someone is not coming, unable to attend, changed
with the other person which we do not know the capacity. That person needs adapting, right. Our
human resource is labour. The workers are not educated after they are graduated from STM, Sekolah
Teknik menengah [middle school for technician]; they continue studying based on experience.
Furthermore, as the most important, they are coming not under the contract. It all depends on the
foreman. We do not know who is working. We can only depend on the foreman. Also, the foreman as
well supposedly depends on some people that have joined him for a long time. However, again, we
cannot always depend on foreman only. We have to start depending on people from senior
management or people who work on the site, such as PM.

Q5. Division in charge of Innovation

Interviewer:
OK, so, is there a division which is in charge of those innovations?

IO-09:
It is only me, as the owner, helped by my PM. However, we do not have a construction team that
taking care about innovation. It is all just based on me and PM. The innovation itself comes from the
site where there is a complaint from the worker, and then we hear it, and then we try to find a solution
to it. That is innovation too.

Interviewer:
Why there is no specific division which is taking care of this innovation?

IO-09:
Hmm… Maybe because now we do not need to make a particular team because we have not faced
big trouble that needs a big innovation. I think that I can still handle it.
INBOUND OPEN INNOVATION
Q6. Inbound Open Innovation Performance

Interviewer:
Now, as a question regarding innovation has been all answered, I would like to discuss the more
detailed topic about open innovation. Firstly, I would like to ask whether or not you have heard
about the term ‘Open Innovation’?

IO-09:
Never.

Interviewer:
OK, so, now I want to show you a video about open innovation to give you a brief understanding of
it.

[Showing Video]

Interviewer:
So, for a very brief explanation, there are two aspects of open innovation. Inbound and Outbound.
Inbound is when the company is doing the open innovation, but they are receiving the innovation
from the external stakeholder, while outbound is when the company is doing the open innovation
by giving the idea of their innovation to the other company, or it can also be called
commercialisation. What do you think of open innovation?

IO-09:
About open innovation, R&D is needed. Some contractors in Indonesia have an R&D division.
However, usually, it is in a large contractor. However, for open innovation, I can think of the
collaboration between university and industry, and it has already existed from a long time, but there
are not many universities focus on it or industry that wants to pay the research. When the contractor
has a problem on the site, then they contact the university to make a research, a collaboration. It has
already existed, but not many have applied that. What I know that can be an example is company A.
However, as I know, company A is making innovation for themselves. That company has not
collaborated with any other institution. Maybe [Name of 2 universities in Indonesia], which is more
about training. The lecturer is called, then giving a workshop about how to improve one equipment
until the patent, and then it is brought to the market which has not existed yet. This is the initiative
right. The company wants to keep good quality, so they try to develop. From company B, they have
already asked this institution to collaborate, for example, for the R&D division. In Japan, all contractors
have a research centre. Why? Because they got an incentive, they got tax relief. In Indonesia, we do
not have that thing. The only incentive we got is only about CSR. The company is asked to allocate the
cost for CSR. Therefore, the company get tax relief. So, CSR is a community service. The company is
asked to make something for social. However, for open innovation, it is still not existed yet. If the
government make the regulation about this, more company will do innovation for tax relief.

Interviewer:
For this dissertation, I am highlighting inbound open innovation because it is more general and more
popular instead of outbound open innovation. Many people are having a paradigm of not sharing
their innovation. So, responding to your answer, many people have never heard this even though
they might have applied this, it is because the term itself existed in 2003, but it has been applied far
before. However, since there was a person named Chesbrough talked about this, many people
researched. That is why answering your statement that many people have done this even though
they do not know the term. Have you collaborated with other institution or external stakeholder
regarding innovation?

IO-09:
No, never

Interviewer:
Why does not your company do any inbound open innovation?

IO-09:
It is still hard to do, and again, we do not have R&D division, which then takes much time for doing it
while we still got many projects. Therefore, I do not think it has an urgency at this moment to be
prioritised.

Q7. Division in Charge for Inbound Open Innovation

Interviewer:
So, there is no division which takes care of this?

IO-09:
No.
Q8. Interviewee Perspective of Inbound Open Innovation

Interviewer:
What do you think is the benefit of Open Innovation if you are looking from the video?

IO-09:
If we are talking about the benefit, I think it is a benefit for the construction company if they are
collaborating with academic or research centre, such as [2 Names of Academic or Research Centre]. If
we can collaborate, it is good right since in the industry. We are talking about something real. I need
this, and I need that. However, in academic, people are usually doing basic research. If the research is
done based on the real situation and researched from the root and basic by the university or other
research centres, the result can be accounted for. For example, the most important industry is the
herbal industry. People have already known that this kind of herbal can do this and that. However, in
industry, it cannot be accepted. Research should be done before accepting the information of it, basic
research. Is it safe? Does it really healthy? Is there a basic knowledge that this herbal is consist of these
substances? People can only see, ‘Oh! What I know is I have an experience that I will become like this
if I drink this.’ However, people do not know the ‘why’. It is same with the construction industry, they
find problems, and then as fast as possible, looking for the solution. However, it should be researched
so that it will be able to be accepted by the others, can be commercialised and used by the industry,
as you said the outbound open innovation.

Interviewer:
What do you think is the capability of a CEO in applying Inbound Open Innovation?

IO-09:
Well, I think the CEO is not only… CEO must understand the condition on the site. There are many CEO
who placed their people randomly because they do not know the site condition. Therefore, it depends.
Some experienced CEO has understood because that person is getting used to on the site. For
example, our minister, [name of a minister], that person is not a marine person. However, she used
to have a company in the marine, so she has experience with it.

Q9. Interviewee’s Desire to do Inbound Open Innovation

Interviewer:
After listening about the concept of open innovation, will you do open innovation?
IO-09:
Yes, maybe, I will. I also wish that all construction company in Indonesia do this. It is now about how
the government facilitate this. Until now, many companies are still thinking of how innovation can
improve their profit. It is hard because it is not directly impacting the company’s revenue. The
government must also give a contribution to it; one of them is tax relief. For this research, cost should
be considered as expenditure cost. For example, if you have 100 million expenditure, the expenditure
is not 100 million, but it is considered as 200 million to get tax relief.

Interviewer:
OK, so all answered has been asked and thank you for your time and willingness to be my
interviewee.
Interview Transcript with IO-10
INTRODUCTION
Q1. Introduction

Interviewer:
Good Morning Sir, thank you for your time and willingness to be the respondent for my interviewee.
So, in the beginning, I want to introduce myself. My name is Angelia. I am a postgraduate student
at the University of Leeds taking International Construction Management and Engineering
Programme. At this moment, I am doing a dissertation which discusses “Open Innovation”. Before
starts, I would like to ask you to read the Informed Consent Form to know your rights in this
interview, how this interview will be done, and what will happen after. The document will be given
in two languages, English and Bahasa, which two of them have the same information. After
agreeing, I hope that you sign on the form.

Interviewer:
Thank you, and this form is for you. Prior to start, I would like to ask for the consent for recording
this interview to avoid misconception while analysing this interview due to missing some important
details.

IO-10:
OK.

Interviewer:
If there is a question that you are not convenient, you can refuse not to answer. This interview is
only used for the dissertation and will not be published on any platform. It will also be written as
anonymous to mind the credential.

INDIVIDUAL AND COMPANY’S PROFILE

Q2. Individual and Company’s Profile

Interviewer:
As the beginning, I would like to ask what your position in your company is?

IO-10:
My position is a Project Manager in this company.
Interviewer:
What is the grade of the company? Is it classified as large, medium, small, or micro company?

IO-10:
Well, I think the company that I work on is not very big and not very small. It seems that my company
is a medium-sized company.

INNOVATION

Q3. Innovation Performance

Interviewer:
OK, now, for the first topic, I would like to talk about innovation in general. Innovation is generally
a new finding which is different from the existing. For example, if you want to build an earthquake
resistance building, if you usually use timber as the main material, maybe you can start using
bamboo, which is stronger than timber.

Interviewer:
I would like to ask, what does “innovation” mean to you? What is your opinion about that? Is it
something important or maybe you have another opinion?

IO-10:
Well, I think innovation can be said as important. However, in my opinion, without innovation, a
company can still survive. However, it is better if we do innovation, can make this company better, or
neater I can say. It can also improve profit.

Interviewer:
Have you ever done any innovation?

IO-10:
Hmm… innovation. The company in which I work has not done the impacted innovation. Maybe it is
impacting, but we have not felt the effect of it. It is more to innovation associated with management,
to make the atmosphere of the office is better. The innovation that we did for the company
improvement is, for example, calculating the building volume. Building volume usually depends on the
worker to how many people they want to divide the task. What we have done, we usually calculate
them separately. Therefore, it is hard for the director or vice-director to evaluate this calculation. From
what I know, the vice director wants to make innovation about how to make this volume calculation…
For example, if there is one absent person, we cannot continue the work. Through this innovation, it
will be easier to check, checking the calculation of whether the volume is right with that price. Has it
OK or not. We want to file all the calculation that has been done by the workers. Then, the files can
be compiled onto one and can be checked easily by the vice director. However, this is just a plan that
the vice director is going to do. I think that is the only innovation since I have worked here.

Q4. Innovation Success Rate based on Iron Triangle

Interviewer:
Does it affect the project’s schedule and time completion of the project?

IO-10:
Actually, we still do not know because we are about to do it. However, it is predicted that it will affect
the project’s schedule because everything is now more organised. Maybe it is not affecting deeply,
just faster the working flow. It might cut the unnecessary communication. I think since everyone can
now access this volume calculation.

Interviewer:
How about the cost? Does it end up over budget or under budget?

IO-10:
According to the cost, I think it will be the same since we have no expenditure for this. However,
maybe since it could faster the completion of the project, maybe that is the point where cost is
affected by this innovation. However, if you are asking about the direct impact of this innovation to
the cost, I think it is not changed at all.

Interviewer:
Will the quality be better with this innovation?

IO-10:
Same as cost, I think it will not affect much. It might give a good impact on the quality, but not that
much. We still do not know in terms of quality, but we hope that it can affect the quality as well

Interviewer:
So, in accordance with time, cost, and quality do you think this innovation will be succeeded?
IO-10:
Yes, it is supposedly succeeded. However, maybe we will face difficulties from people, which is afraid
of changes. The worker, particularly those who are not educated, tends to reject any changes that
might harm their position. Moreover, there is another barrier to this. The one that we concern about
that might inhibit this innovation is that there are many ways in calculating the volume and some
people use a different method. Some think that this method is easier, while some others think that
the other method is easier. We are afraid that if the file is compiled, and if there is someone which is
a bit careless, it could impact the other work. It might make the working flow better or even worse.
Therefore, it must be thought too. Maybe we have to do the trial and error stuff first before applying
this permanently.

Interviewer:
I want to ask whether you have any less succeed innovation or not?

IO-10:
Hm… I do not think so. We have never done any innovation before. I think the one that I told you is
the only innovation that we are going to do in the future. Maybe, we will start innovating after this
one. At least, that what I know because we, on the site, always use just the conventional things.

Q5. Division in charge of Innovation

Interviewer:
OK, so, is there a division which is in charge of those innovations?

IO-10:
Hm… I think there is no specific division. The one who is taking care of this innovation is the division
who is related to innovation. The director and the vice director are giving order to a particular division,
and we have to do what is asked by them. Me, as a PM, has never asked to do the innovation, so I
have never done it.

Interviewer:
Why there is no specific division which is taking care of this innovation?

IO-10:
I think it is just not necessary now to have a specific division since our company is a medium-sized
company. As I said before, as long as our company can still survive without innovation, I think we
should improve our performance first until one point where we have improved enough. Then we will
do the innovation afterwards.

INBOUND OPEN INNOVATION

Q6. Inbound Open Innovation Performance

Interviewer:
Now, as a question regarding innovation has been all answered, I would like to discuss the more
detailed topic about open innovation. Firstly, I would like to ask whether or not you have heard
about the term ‘Open Innovation’?

IO-10:
Not yet, for now.

Interviewer:
OK, so, now I want to show you a video about open innovation to give you a brief understanding of
it.

[Showing Video]

Interviewer:
So, for a very brief explanation, there are two aspects of open innovation. Inbound and Outbound.
Inbound is when the company is doing the open innovation, but they are receiving the innovation
from the external stakeholder, while outbound is when the company is doing the open innovation
by giving the idea of their innovation to the other company, or it can also be called
commercialisation. For this dissertation, I am highlighting inbound open innovation because it is
more general and more popular instead of outbound open innovation. Many people are having a
paradigm of not sharing their innovation. What do you think of open innovation?

IO-10:
Actually, I can say that it is must be good, especially if it gives good impact to both companies. For my
company, as I know, we collaborated, but I am not sure whether this is innovation or not. Hmm… The
company that I work in is a construction company which is a specialist in steel, such as a warehouse
or factory. My contractor has a subsidiary which is a custom steel factory. If someone asks to do this
design, we can make it. Therefore, if I can say, the company in which I work is doing a non-formal
collaboration but only through words. There is a company in Vietnam, which is in the same industry,
but that company, besides producing steel, it also being a consultant, so they design the building as
well. Maybe they want to do… actually, if I think again, it is not innovation, but it is just collaborating.
For example, the subsidiary company is making steel, but companies in Indonesia cannot make
tapered-shape steel. In fact, if we use tapered-shaped steel, we can save up to 40% from the previous
one. So, my company is collaborating with the Vietnam company, and it is expected that we can do it
too. However, yeah, I do not think this is innovation.

Interviewer:
I can say that it is actually not an open innovation. Maybe if you are trying to make that tapered-
shaped steel, it is the internal innovation, not an open innovation either. If I may know, why does
not your company do any inbound open innovation?

IO-10:
As I said previously, I do not think that I have found the point where I need to do innovation. We are
focusing on the performance this moment because it could increase too through collaboration, right?

Q7. Division in charge of Inbound Open Innovation

Interviewer:
So, there is no division which takes care of this?

IO-10:
No. I think if I do it, it is more about teamwork since open innovation is more complex and all must be
involved in this. I think more or less; open innovation will change the culture of the company, so
everyone must be ready. The easiest way to prepare everyone is to involve them in this innovation.

Q8. Interviewee Perspective of Inbound Open Innovation

Interviewer:
What do you think is the benefit of Open Innovation if you are looking from the video?

IO-10:
Hmm… Open innovation, maybe, if we see from the contractor company perspective such as the place
that I work, for example, our company has no specific division in doing this research. However, there
always be projects, there always be tender every month, every week, maybe twice a week, there is
always something, right? Maybe we do not have time to do this open innovation, but we want to do
something. The point is, when we want to do innovation, we have an idea, but we have no resource.
It can be better because, from research, we can know something from the basic and specific
fundamental to create some innovations.

Interviewer:
What do you think is the capability of a PM in applying Inbound Open Innovation?

IO-10:
For me, as a PM… PM is the one who communicates directly to the worker and the client. Therefore,
I think the capability of PM is; first, I have to make sure that the innovation that we have discussed is
acceptable to our consumer, where this innovation has to give benefit for the consumer and us. Then,
after the consumer has accepted, this innovation must have been accepted to by the worker under
me whether they can do these innovations and whether they want to do this innovation or not.

Q9. Interviewee’s Desire to do Inbound Open Innovation

Interviewer:
After listening about the concept of open innovation, will you do open innovation?

IO-10:
Mmm… Actually, I am quite interested in doing this open innovation because this innovation can give
positive impact and increase the profit that we get from this company. However, the problem is we
have no time to do that because we have no special division too to do this. We are still focusing on
the tenders.

Interviewer:
OK, so all answered has been asked and thank you for your time and willingness to be my
interviewee.
Interview Transcript with IO-11
INTRODUCTION
Q1. Introduction

Interviewer:
Good Morning Sir, thank you for your time and willingness to be the respondent for my interviewee.
So, in the beginning, I want to introduce myself. My name is Angelia. I am a postgraduate student
at the University of Leeds taking International Construction Management and Engineering
Programme. At this moment, I am doing a dissertation which discusses “Open Innovation”. Before
starts, I would like to ask you to read the Informed Consent Form to know your rights in this
interview, how this interview will be done, and what will happen after. The document will be given
in two languages, English and Bahasa, which two of them have the same information. After
agreeing, I hope that you sign on the form.

Interviewer:
Thank you, and this form is for you. Prior to start, I would like to ask for the consent for recording
this interview to avoid misconception while analysing this interview due to missing some important
details.

IO-11:
OK.

Interviewer:
If there is a question that you are not convenient, you can refuse not to answer. This interview is
only used for the dissertation and will not be published on any platform. It will also be written as
anonymous to mind the credential.

INDIVIDUAL AND COMPANY’S PROFILE

Q2. Individual and Company’s Profile

Interviewer:
As the beginning, I would like to ask what your position in your company is?

IO-11:
My position in my company is the project manager.
Interviewer:
What is the grade of the company? Is it classified as large, medium, small, or micro company?

IO-11:
The company that I worked in is classified as medium-sized. Medium-sized private contractor company
in Indonesia.

INNOVATION

Q3. Innovation Performance

Interviewer:
OK, now, for the first topic, I would like to talk about innovation in general. Innovation is generally
a new finding which is different from the existing. For example, if you want to build an earthquake
resistance building, if you usually use timber as the main material, maybe you can start using
bamboo, which is stronger than timber.

Interviewer:
I would like to ask, what does “innovation” mean to you? What is your opinion about that? Is it
something important or maybe you have another opinion?

IO-11:
I think innovation is good. However, sometimes, innovation is not convincing enough, or the idea for
the innovation is not convincing, which sometimes makes contractor reluctant to do it. Moreover, if
the innovation is not going as it is planned, the risk is high, so people do not do that and use the
conventional method. Unless another company has done this innovation and the other company looks
that they have succeeded. I think it is not only in the contractor; other industry in Indonesia sometimes
kills someone creation, because they have a thought that someone needs to be succeeded first before
we are doing it. I think not many contractors want to do it where nobody has done it before.

Interviewer:
Have you ever done any innovation?

IO-11:
Yes, I have. Internal innovation that we are doing right now. However, I do not know whether another
company has done this before or not.
Interviewer:
Can you tell me the experience?

IO-11:
We have one innovation that we are working on right now, an innovation associated with
management. It is called tracking material. Tracking material is actually simple. Every time you order
the material to the supplier, when you are ordering material, or the material has arrived, there is an
excel for it, a programme, to record it immediately. Therefore, everything that goes into our site,
either into and out from the site will be all tracked. We have never done this thing before. If we bought
a certain amount of cement, with specific type, there was no tracking data for it. However, the one
that we are applying now is, it is now clear how many cements we are buying, it is all tracked. Actually,
the purpose of tracking material is to reduce the cost since our company is focusing on detailing
material. For example, for the construction of the beam. We have a budget, for instance, to use 100
sacks of cement. It is really tracked that we order 100 sacks for the column. As I said previously, this
is the innovation that we are doing right now. Actually, the process has not been that good, and there
are some problems. It has not been a succeeded innovation, still in progress. To start something new,
it means that you have to prepare for the risk as well.

Q4. Innovation Success Rate based on Iron Triangle

Interviewer:
Does it affect the project’s schedule and time completion of the project?

IO-11:
Based on the theory, it is supposed to be faster and neater and maybe organised. However, this is still
a trial, which result has not shown, so we do not know. It is now applied in our four projects.

Interviewer:
How about the cost? Will it affect the cost?

IO-11:
Yes, we hope so. Often, when we do not have the record of the quantity we have bought, we buy too
much, and it is then becoming a waste since we are not using it. However, if we record them well and
buy the exact quantity, it is reducing the cost.
Interviewer:
Does it give an impact on quality?

IO-11:
I think it is not giving much impact to quality since it is more about material management.

Interviewer:
So, regarding time, cost, and quality, do you think this innovation is a success?

IO-11:
Hmm, I think that I cannot say it is success or not success right now because we still do not know.
However, it helps because we are more organised. It depends on the management on the site. When
we have an idea, but the people on the site are not doing it right, it can be unsuccessful too. We hope
that they really want to be changed through this innovation.

Interviewer:
I want to ask whether do you have any less succeed innovation or not?

IO-11:
Based on what I know, we do not have one.

Q5. Division in charge of Innovation

Interviewer:
OK, so, is there a division which is in charge of those innovations?

IO-11:
No, we do not have one. However, the ongoing innovation is now handled by the division, which is
related to the innovation itself. For example, tracking material is related to the site, and the
construction site is done by the engineer. So, the tracking material is done by engineer. We have no
specific division that is handling innovation.

Interviewer:
Why there is no specific division which is taking care of this innovation?
IO-11:
I think most medium-sized construction company in Indonesia has no R&D. However, I think that is
not the point, right? The point is as long as our company is doing innovation for the development of
our company, I think it is not that necessary to have a certain division which is only taking care of
innovation. Moreover, we did not do much innovation, so it feels like it is better to just do it instantly
rather than making new division, hiring new people, and paying more people.

INBOUND OPEN INNOVATION

Q6. Inbound Open Innovation Performance

Interviewer:
Now, as a question regarding innovation has been all answered, I would like to discuss the more
detailed topic about open innovation. Firstly, I would like to ask whether or not you have heard
about the term ‘Open Innovation’?

IO-11:
Never heard before.

Interviewer:
OK, so, now I want to show you a video about open innovation to give you a brief understanding of
it.

[Showing Video]

Interviewer:
So, for a very brief explanation, there are two aspects of open innovation. Inbound and Outbound.
Inbound is when the company is doing the open innovation, but they are receiving the innovation
from the external stakeholder, while outbound is when the company is doing the open innovation
by giving the idea of their innovation to the other company, or it can also be called
commercialisation. For this dissertation, I am highlighting inbound open innovation because it is
more general and more popular instead of outbound open innovation. What do you think of open
innovation?
IO-11:
I think open innovation is good, especially that inbound open innovation. Researching with a research
centre or university, for example. Company A which use the research done by the research centre is
very good, I think. However, I think there will be a thought that when a research centre has done
research, and it is brought to us, the first thing that people will look at is not the benefit of the
innovation, but the risk. How big the risk. Sometimes, we are too afraid of something new, especially
when it is related to the project. If it is related to SOP, people might not be too afraid. Nevertheless,
if it is related to the project, the contractor is sometimes afraid, because their life depends on the
project. All of the revenue comes from the project. That is why they are afraid. I want to comment a
bit on the outbound open innovation. Sometimes, a contractor might have the idea to do the
innovation, but it seems that not many contractors will do it, especially private contractor. If it is a
public contractor company, they sometimes share with the other public contractor company, which is
owned by the government. I think it is still rare to find the private construction company which want
to collaborate and share their innovation. It is very rare, and I can say it is impossible since it might
complicate them.

Interviewer:
Have you collaborated with other institution or external stakeholder regarding innovation?

IO-11:
Hmm… I think we have never done any collaboration for innovation. The company that I work in have
conventional thinking that people are too afraid to change and being more open to the external
stakeholder.

Interviewer:
Why does not your company do any inbound open innovation?

IO-11:
Actually, I remember something. We have done something. However, I do not know whether this is
innovation or not. We were inviting a consultant who is used to manage SOP in a company, to improve
the company’s performance, general performance. Thus, this consultant came and researched some
employees, conducted some interviews, and he took a conclusion. He, then, chose a programme to
manage the employees with the expectation that if this programme is worked, new SOP can be used,
employees can be happy. However, the problem is, it is hard to change the old habit, change the
entrenched habit. Employee’s and company’s habit are hard to be changed. That is the first. The
second one, in our company, maybe the employees want to change, but the boss ‘does not want to
be changed’. The boss ‘does not want to be changed’ while the company needs to spend more cost.
For example, from time reward and punishment. The main point of this programme is that the
employee is given a reward to improve their work efficiency and effectiveness. However, the issue is,
this ‘reward’ is sometimes not working. I think this programme is only working for several months and
now it is not working at all, going back to the old habit. So, I think that it is failed.

Interviewer:
What is the cause of that failure innovation?

IO-11:
Because my company has no ability to apply this innovation. So, I think the old boss is stuck and does
not know how to fix the old habit or old SOP that has existed, and he looks at the idea of this consultant
which he has used in the other company. Hence, my company asked them to collaborate with us for
them to change us, change our culture. Before we did that, we have conducted meetings with all
employees in our company for several times. It was working in the first place, but it is not consistent.
I do not actually know, but we have not seen the consultant again until now, so we do not know
whether it is still applied or not. Moreover, the company that he has succeeded in applying it is in a
different industry with us. It is a fabrication company. I think fabrication company is easier in terms of
the system compared to the construction company, to project because the project has different and
more variables. If we compare to the product and done, that is easier. However, for the contractor,
we always think that building is a product which needs to be maintained depends on the contract.

Q7. Division in charge of Inbound Open Innovation

Interviewer:
So, there is no division which takes care of this?

IO-11:
No, we do not have one too. Just those who are related to innovation.

Q8. Interviewee Perspective of Inbound Open Innovation

Interviewer:
What do you think is the benefit of Open Innovation if you are looking from the video?
IO-11:
I think there are many benefits, especially if it has been applied to the other place or the other
company. It will benefit the company. It is like, there is a bad habit of the company which can be
brought out, the employees and the boss can be happy and so on. I think it benefits a lot. However, it
depends on both companies that are collaborating, I think. It gives benefit in firstly, performance. The
improvement for performance is crucial because it can increase turnover. The key is in the employees.
How to make them work? The point is what can they give to our company and what our company can
give to the worker. There should be a reciprocal relationship. A company cannot ask the worker to
work very hard and give a high turnover to the company, but the company does not give anything to
the worker, does not give any reward. Thus, the point is, the worker is working very hard, and just
working normally cannot be the same. An incentive should be given.

Interviewer:
Why has not private construction company not applying inbound open innovation?

IO-11:
I think it is more about the cost. The company needs to spend more to do the inbound open innovation
instead of just internal innovation. The owner usually thinks whether it is worth it to get a particular
revenue with certain expenditure. Alternatively, maybe, some are reluctant to do inbound open
innovation because the risk is high.

Interviewer:
What do you think is the capability of a PM in applying Inbound Open Innovation?

IO-11:
I think PM has to be able to manage the technical condition at the site. PM has to be able to manage
the human resource well, a human can be a good leader, so if he gives a task to the worker and can
direct the worker well, the innovation should be succeeded. A large project usually has many people
on the site, such as site manager, foreman, and worker. If the PM can handle everything well and can
manage the human resource well, I think the research can be applied to the site.

Q9. Recommendation for doing Open Innovation

Interviewer:
Would you recommend other private construction company to apply inbound open innovation?
IO-11:
I think I might recommend them if they have an idea to make an innovation which makes them have
to collaborate to pursue the objective of that innovation. Do not look too much to the risk; just look
at the result. If it is failed, OK, this is the risk, but if it is a success, the impact of its success must be
seen as well. Sometimes, we are too afraid to do something new because we are just too afraid of
trying. So, do not be too convenient in a comfort zone for too long. Maybe if the risk is very high, which
could make a company bankrupts, it should be considered. However, if it just gives a small impact, I
think the company should not be afraid and take the opportunity.

Interviewer:
Which one do you think gives the best impact, the internal innovation, or inbound open innovation?

IO-11:
I think for right now, it is internal innovation because we have succeeded in doing it and it is simpler.
The thing that makes it complex is, internal innovation is usually done by one division only, while
inbound open innovation is done by all people in the company from people in top management to
those in the lowest position. Everyone must change. Otherwise, the inbound open innovation will not
be succeeded.

Interviewer:
OK, so all answered has been asked and thank you for your time and willingness to be my
interviewee.
Interview Transcript with IO-12
INTRODUCTION
Q1. Introduction

Interviewer:
Good Morning Sir, thank you for your time and willingness to be the respondent for my interviewee.
So, in the beginning, I want to introduce myself. My name is Angelia. I am a postgraduate student
at the University of Leeds taking International Construction Management and Engineering
Programme. At this moment, I am doing a dissertation which discusses “Open Innovation”. Before
starts, I would like to ask you to read the Informed Consent Form to know your rights in this
interview, how this interview will be done, and what will happen after. The document will be given
in two languages, English and Bahasa, which two of them have the same information. After
agreeing, I hope that you sign on the form.

Interviewer:
Thank you, and this form is for you. Prior to start, I would like to ask for the consent for recording
this interview to avoid misconception while analysing this interview due to missing some important
details.

IO-12:
OK.

Interviewer:
If there is a question that you are not convenient, you can refuse not to answer. This interview is
only used for the dissertation and will not be published on any platform. It will also be written as
anonymous to mind the credential.

INDIVIDUAL AND COMPANY’S PROFILE

Q2. Individual and Company’s Profile

Interviewer:
As the beginning, I would like to ask what your position in your company is?

IO-12:
I am here as a director.
Interviewer:
What is the grade of the company? Is it classified as large, medium, small, or micro company?

IO-12:
It is classified as a medium-sized company.

INNOVATION
Q3. Innovation Performance

Interviewer:
OK, now, for the first topic, I would like to talk about innovation in general. Innovation is generally
a new finding which is different from the existing. For example, if you want to build an earthquake
resistance building, if you usually use timber as the main material, maybe you can start using
bamboo, which is stronger than timber.

Interviewer:
I would like to ask, what does “innovation” mean to you? What is your opinion about that? Is it
something important or maybe you have another opinion?

IO-12:
Innovation is very important, I think. Without innovation, maybe our company will not be a success. I
can admit that our company did not do many innovations, but the point is, as long as we have an idea
and the other resources, we have to keep innovating. Otherwise, our company will not survive. I think
that is the key. Being different in the market is very important these days. Through innovation, we can
be different from the competitor. We can do this, or we can do this better, but the competitor cannot.
It is our plus point. When we innovate, our company is brought into a better level of work, probably,
which increase our company’s value too.

Interviewer:
Have you ever done any innovation?

IO-12:
We did not do many innovations, actually. As I said, ideas and resources are the most important
component which must be fulfilled to do the innovation. If one factor is missing, it cannot be done.
Imagine, if you have an idea, but you do not have resources. You cannot innovate; you cannot do trial
and error, you cannot develop something. If you have resources, but you do not have an idea, it is
even harder since the idea of innovation is the key point of every innovation. Maybe [Name of another
interviewer, IO-11] has told you about the innovation what we did, right? About the material tracking?
That is the most recent innovation that we are doing. We have never organised our material in
detailed, but now, with that material tracking, we have to do that. It benefits us a lot particularly
regarding the schedule and budget since through that material tracking, and we can track everything
from the material ordered, the quantity, how many that we have not ordered, and so on. It might not
impact the quality that much, but since the management is neater, it is quite affecting cost and time.
Actually, the driving factor of why we are doing this is we used to face problem regarding this. For
example, we were supposed to make a column on 10 April, but back then, the material has not
prepared on 9 April. The concrete did not come, so we have to delay a day. Did it affect the project
schedule? Yes, of course. The work after is being delayed too. Did it affect the cost? Yes, of course.
We wasted one day to do nothing, but we were still paying the labour cost, material rent, etc. That is
the point where this material tracking is affecting the time and cost of the project.

Q4. Innovation Success Rate based on Iron Triangle

Interviewer:
So, regarding time, cost, and quality, do you think this innovation is a success?

IO-12:
I cannot say because we are still applying them. However, what I can say is that tracking material will
succeed since the project’s time and the cost is getting better, and the quality is not affected. I think
it is about balance. We cannot innovate something which only focuses on one factor between cost,
time, and quality, while the other factor is sacrificed. It is about balance.

Interviewer:
I want to ask whether do you have any less succeed innovation or not?

IO-12:
No, I think. We have never done innovation that is less succeeded. What I mean by less succeed is
when cost, time, and quality is not balanced.
Q5. Division in charge of Innovation

Interviewer:
OK, so, is there a division which is in charge of those innovations?

IO-12:
We do not have a specific division. Divisions who are working with this innovation is the one which
correlated to the innovation. For example, if our innovation right now is related to the site, the PM or
SM will be the one who is in charge.

Interviewer:
Why there is no specific division which is taking care of this innovation?

IO-12:
I think it is not necessary now since my worker and employees are able to handle that.

INBOUND OPEN INNOVATION

Q6. Inbound Open Innovation Performance

Interviewer:
Now, as a question regarding innovation has been all answered, I would like to discuss the more
detailed topic about open innovation. Firstly, I would like to ask whether or not you have heard
about the term ‘Open Innovation’?

IO-12:
No, I have never heard about it before.

Interviewer:
OK, so, now I want to show you a video about open innovation to give you a brief understanding of
it.

[Showing Video]

Interviewer:
So, for a very brief explanation, there are two aspects of open innovation. Inbound and Outbound.
Inbound is when the company is doing the open innovation, but they are receiving the innovation
from the external stakeholder, while outbound is when the company is doing the open innovation
by giving the idea of their innovation to the other company, or it can also be called
commercialisation. For this dissertation, I am highlighting inbound open innovation because it is
more general and more popular instead of outbound open innovation. Many people are having a
paradigm of not sharing their innovation. What do you think of open innovation?

IO-12:
Well, I think open innovation is hard to be done because of its risk. We do not know whether it will
profit or not only based on the research that has been done. If that innovation has a low risk and small
revenue, I think most contractors, especially medium-sized contractor or lower, would not take that
risk. Unless it is a large contractor like public contractors who are very large and have their research
and development team, it might be different. For a medium-sized company like us, I think it is not
worth it to take that risk.

Interviewer:
Have you collaborated with other institution or external stakeholder regarding innovation?

IO-12:
No, we have never collaborated with the external stakeholder for innovation before. Actually, we once
invited someone who has experience in managing employee and changing their conservative mind to
support my worker’s motivation and psychology. However, I do not know whether it is classified as
inbound open innovation or not since our company, together with that person, which is more expert,
is applying a method which might improve my worker’s performance.

Interviewer:
What triggers you to do this inbound open innovation?

IO-12:
Our intention to do inbound open innovation is based on case or issue on the site. We found that our
worker needs a motivation to keep giving maximum performance, and it insists us to innovate with
the external stakeholder. The most important element of innovation is the idea, resources, and ability,
right? We could compromise the idea and resources, but we lack ability. Therefore, I think that is the
driving factor of why we are doing inbound open innovation by collaborating with those who are more
expert than us. However, sometimes that is being our barriers to in implementing inbound open
innovation. When we are not found a huge issue, which insists us to innovate with the external
stakeholder, it is better for us not to do it.
Q7. Division in charge of Inbound Open Innovation
Interviewer:
Is there any division in charge of inbound open innovation?

IO-12:
No.

Q8. Interviewee Perspective of Inbound Open Innovation

Interviewer:
What do you think is the benefit of Open Innovation?

IO-12:
Hm… I can agree that it really differentiates the market since open innovation must be a large scale of
innovation. It means that the company can do something extraordinary after doing open innovation.
Maybe I have the idea, but not the resources. I can ask the other company which has the resources to
collaborate and innovate together. It seems hard for a company in Indonesia since we a conventional
mind. However, yes, I think it benefits a lot.

Interviewer:
What do you think is the capability of a Director in applying Inbound Open Innovation?

IO-12:
I think the most important thing is the director must be able to understand the site. I have to look for
issues that are occurring at the site to do the innovation. However, specifically to inbound open
innovation, I think that the director needs to have good communication management to be able to
talk with people from the other company. Communication is very important. I think through
communication, trust is built. It is one of the driven success factors of the inbound open innovation.

Q9. Recommendation for doing Inbound Open Innovation

Interviewer:
As a company that doing open innovation, do you recommend other private construction company
to apply this?
IO-12:
Maybe. I said maybe because they have to consider the risk and the condition of the company. It is
not common to do open innovation. A company have to be very settled and very prepared because it
is about getting out from the comfort zone or old tradition. Moreover, a company need to spend some
cost. That is what they should think of, cost and tradition.

Interviewer:
OK, so all answered has been asked and thank you for your time and willingness to be my
interviewee.
Interview Transcript with IO-13
INTRODUCTION
Q1. Introduction

Interviewer:
Good Morning Sir, thank you for your time and willingness to be the respondent for my interviewee.
So, in the beginning, I want to introduce myself. My name is Angelia. I am a postgraduate student
at the University of Leeds taking International Construction Management and Engineering
Programme. At this moment, I am doing a dissertation which discusses “Open Innovation”. Before
starts, I would like to ask you to read the Informed Consent Form to know your rights in this
interview, how this interview will be done, and what will happen after. The document will be given
in two languages, English and Bahasa, which two of them have the same information. After
agreeing, I hope that you sign on the form.

Interviewer:
Thank you, and this form is for you. Prior to start, I would like to ask for the consent for recording
this interview to avoid misconception while analysing this interview due to missing some important
details.

IO-13:
OK.

Interviewer:
If there is a question that you are not convenient, you can refuse not to answer. This interview is
only used for the dissertation and will not be published on any platform. It will also be written as
anonymous to mind the credential.

INDIVIDUAL AND COMPANY’S PROFILE

Q2. Individual and Company’s Profile

Interviewer:
As the beginning, I would like to ask what your position in your company is?

IO-13:
I am the project manager in the company that I work in.

Interviewer:
What is the grade of the company? Is it classified as large, medium, small, or micro company?

IO-13:
It is a medium-sized company, I think.

INNOVATION
Q3. Innovation Performance

Interviewer:
OK, now, for the first topic, I would like to talk about innovation in general. Innovation is generally
a new finding which is different from the existing. For example, if you want to build an earthquake
resistance building, if you usually use timber as the main material, maybe you can start using
bamboo, which is stronger than timber.

Interviewer:
I would like to ask, what does “innovation” mean to you? What is your opinion about that? Is it
something important or maybe you have another opinion?

IO-13:
I think innovation can be important and can be not important too. I think the company might still
survive with innovation. However, through innovation, the company can be more developed
compared to other company. The innovation itself has a chance of failure. Therefore, there is a plus
and a minus. If it is a good innovation, the company can be more developed than other company.
Otherwise, it might reduce revenue. Nevertheless, I think without innovation, a company can still
survive.
Interviewer:
Have you ever done any innovation in your company?

IO-13:
We actually rarely did innovation on the construction site unless there is an issue or special case.
However, for this moment, for the management aspect, I force my worker to do something which is
called material schedule. It is actually similar to the schedule, which consists of the list of the work,
what should be done, from when, to when, the duration, and so on. However, now, we are trying to
make something which is called the material schedule. Therefore, for example, we are making a
column in 5 May, which we have to do the reinforcement, formwork, and so on. Material schedule
means we are pulling back from 5 May. If we are doing the column reinforcement now when we should
order the material. Another example, sill. Sill is done in fabrication. If we want to install the sill on a
certain day, when we should order or when we should start taking care of it. It is connected to the
schedule too. From a certain schedule, we pull back, when we have to order the material. That is what
we do to make it look neater every time we are looking to the schedule. Based on this material
schedule, we can know what work we are doing today and what we are ordering today, how much,
and whether there is SPK [surat perintah kerja or work order] that needs to be concerned.

Q4. Innovation Success Rate based on Iron Triangle

Interviewer:
Does it affect the project’s schedule and time completion of the project?

IO-13:
I think it affects the project’s schedule to be faster. Howver, it not only depends on it but also on those
who are doing it, the people on the site. Therefore, site management must be good. I mean, you are
doing anything with the material, right? If the material has come, but the site management is bad, our
project will be late even though the material has well-scheduled. It is all need to be balanced. If the
site management is good, but the material management is bad, it is same, right? Therefore, I think
this material schedule actually can faster the project’s schedule. However, the key success is in the
site management, not the innovation, more to the ability of the worker.

Interviewer:
How about the cost? Does it end up over budget or under budget?
IO-13:
I think it reduces cost. Actually, it does not affect that much, but since the material schedule is neater,
it easy to track if something goes in an unplanned way. The earlier some issue is detected, the cheaper
the cost for fixing them.

Interviewer:
Regarding quality, does it influence the project’s quality?

IO-13:
Hmm… I do not think it influences the project’s quality. It is more about time or cost if it succeeds, or
if the site management is good.

Interviewer:
So, regarding time, cost, and quality, do you think this innovation is a success?

IO-13:
As I said previously, I cannot state whether it is a success or not since it is based on the site
management. It is very different to material or equipment innovation because management needs
teamwork, the work of many people, which head is different one to the other. However, I think it
makes the work easier and faster if the worker works properly for it.

Interviewer:
I want to ask whether do you have any less succeed innovation or not?

IO-13:
Maybe there are some, but I do not remember about it now. We did several innovations about
management previously, but I do not remember. It has been a very long time since our last innovation.

Interviewer:
So, if you could remember, what is the reason for that failure?

IO-13:
I cannot remember clearly, but what I know is, most failure is because of the human factor. Every
people have a different objective, different task, and construction is the work of many people, not
only the foreman only. Moreover, the most worker in Indonesia is not educated. Therefore, it is
sometimes hard to manage so many people and to explain things on what we are doing now since
they sometimes do not understand. There might be some small technical issue that causes the failure,
which still can be fixed before it harms the innovation. However, I think human is the biggest factor of
innovation failure.

Q5. Division in charge of Innovation

Interviewer:
OK, so, is there a division which is in charge of those innovations?

IO-13:
For now, we have no division for it. However, now, I and people from top management are discussing
to make R&D division since we think that it will be important. Looking that this material schedule is
succeeded and easier the work, we decided to make R&D to make more innovation to make our work
faster, cheaper, and maybe better quality.

INBOUND OPEN INNOVATION

Q6. Inbound Open Innovation Performance

Interviewer:
Now, as a question regarding innovation has been all answered, I would like to discuss the more
detailed topic about open innovation. Firstly, I would like to ask whether or not you have heard
about the term ‘Open Innovation’?

IO-13:
No.

Interviewer:
OK, so, now I want to show you a video about open innovation to give you a brief understanding of
it.

[Showing Video]

Interviewer:
So, for a very brief explanation, there are two aspects of open innovation. Inbound and Outbound.
Inbound is when the company is doing the open innovation, but they are receiving the innovation
from the external stakeholder, while outbound is when the company is doing the open innovation
by giving the idea of their innovation to the other company, or it can also be called
commercialisation. For this dissertation, I am highlighting inbound open innovation because it is
more general and more popular instead of outbound open innovation. Many people are having a
paradigm of not sharing their innovation. What do you think of open innovation?

IO-13:
Actually, I think inbound open innovation is good. I mean that it is great, right, if we can get the
innovation from those who has more experienced than us. However, the problem is, it is hard if we
get those innovations from the university. We know that university is an academic institution. It means
that they are making everything based on theory. That is true, that is not wrong. However, the wrong
thing is, when they are doing it only based on theory without thinking about practical. For example, I
heard my son’s friend, who was doing the undergraduate thesis about light-weight concrete, which
used very light aggregate. It was made by the lecturer, which like to do research. Moreover, some
superplasticiser was also applied to make the compression strength is high. How can that be applied
at the site? Firstly, light-weight material is kind to be impossible to be used. Secondly, the use of
plasticiser makes the cost of concrete very high. That is what I mean. Their innovation might be good.
Who does not like the light-weight concrete, which has high strength compression? By listening to
thing like that, it seems like inhibiting me from doing the inbound open innovation.

Interviewer:
Have you collaborated with other institution or external stakeholder regarding innovation?

IO-13:
No, we have never done that collaboration in terms of innovation before. Maybe we will do once our
R&D has settled, but I think for the beginning, we will do just internal innovation by pushing our R&D
until it gets more experience.

Interviewer:
Why doesn’t your company do any inbound open innovation?

IO-13:
Simple answer, we are not ready yet. Again, we might do it in the future when we look that it is
necessary, and we have prepared R&D to do those innovations. Oh! Also, knowledge. We have to
gather our information about those inbound open innovation first, about how to do that, the risk, the
benefit, the patent issue, and so on.

Q7. Division in charge of Inbound Open Innovation

Interviewer:
So, there is no division which takes care of this?

IO-13:
No.

Q8. Interviewee Perspective of Inbound Open Innovation

Interviewer:
What do you think is the benefit of Open Innovation if you are looking from the video?

IO-13:
I think maybe through open innovation, and we can exchange our resource. In doing innovation, we
need some resources, such as educated worker, equipment, idea, cost, and so on. Sometimes, we
cannot satisfy all of them. For example, most contractors who ask for collaboration in terms of
innovation usually have the ideas and cost while they do not have educated worker and equipment.
Collaboration partner should be looked based on the company’s criteria, to look for educated worker
and equipment that can fulfil this innovation. It is useless if we have an idea and cost only, but we are
not able to actualize them.

Interviewer:
What do you think is the capability of a PM in applying Inbound Open Innovation?

IO-13:
I think Project manager must be able to take care of their human resource well, especially when we
are doing inbound open innovation. I am not saying that if we are not doing inbound open innovation,
they should not manage their human resources. However, since the company is doing innovation, the
management must be extra. If there is a new innovation, there must be an old habit or tradition that
needs to be changed and regulate, including the PM itself. PM has to be assertive for himself and
manage people under him. Moreover, I think the most important thing is to change himself because
there must be something changed if new innovation is applied.

Q9. Interviewee’s Desire to do Inbound Open Innovation

Interviewer:
After listening about the concept of open innovation, will you do open innovation?

IO-13:
Hmm... Maybe, if our company has settled, we might do open innovation. However, before, we have
to learn how to do it, how to make a patent for that and so on since the innovation is owned by a
multi-company. Moreover, I must firstly strengthen my worker and makes them agree and happy with
the innovation. It is a crucial aspect in doing innovation, right? However, I am looking forward to it.

Interviewer:
OK, so all answered has been asked and thank you for your time and willingness to be my
interviewee.
Appendix 6: The Result of Open Coding
Code Coded Sentences/ Phrases Sources
If we are comparing the construction industry and the other industry, we
are far more primitive. [...]They are really treating their human resource
well by doing coaching and meeting. Then, we reflected ourselves that we
PC1 IO-01
have never had a meeting other than a technical meeting. That is the point
when we thought we that we have to innovate in human resource. [...] We
have to be opened to the worker.
We are keeping up with times, new things, new concept through
PC2 IO-01
innovation.
PC3 Companies do innovation to make their company survive. IO-01
Innovation creates an additional value which differentiates us from the
PC4 IO-01
other companies.
PC5 We are happy, the client is happy, the worker might be happy too. IO-01
PC6 They are too focus on what they are doing, with the work. IO-01
It is a bit difficult to be applied since trust between each other must be
PC7 IO-01
built in advance.
Moreover, in the end, we could not apply innovation because we do not
know about that. Our enthusiasm was more significant than our knowledge
PC8 IO-01
of that innovation. […] Yes, due to a lack of knowledge because it is not our
expertise.
I knew the fact that the admin staff here has no experience in taking care
PC9 IO-01
of the task, but I was assumed that she could handle it by reading.
Research and development handle that I told you about. I saw my friend’s
PC10 company has no Research and development division, but I think that is very IO-01
important. Therefore, I make one.
If we are comparing the construction industry and the other industry, we
PC11 IO-01
are far more primitive
As a construction company, we looked from the construction company in
PC12 IO-01
other countries
How we get an idea for innovation, we should look from the other, we see
PC13 IO-01
from their work, especially from the other company.
It is impossible if we send our worker to join the training in another
PC14 IO-01
company.
PC15 We lack knowledge. IO-01
It means that their competitiveness is increasing and different to the
PC16 IO-01
market.
PC17 Imagine if there is no knowledge from the others. IO-01
I think open innovation that I will do will give a big step for my company
PC18 instead of the general innovation since when we collaborate with the other IO-01
institution.
Therefore, we have not applied this in any of our projects, and I still do not
PC19 know much about it. It might be ready in one or two years after all have IO-01
been ready.
PC20 Maybe the prescriptive mind can halt the company to innovate more. IO-01
One of my friend’s innovation is making a seminar or short course, which is
PC21 hosted by his research and development team. They ask the other friend to IO-01
teach them.
PC22 It is impossible too if the R&D is just trusted to the staff. IO-01
Code Coded Sentences/ Phrases Sources
However, if we are discussing things with people which has a construction
company but approximately has the same age as me, we will make some
PC23 IO-01
conversation about ‘what is your innovation?’, ‘what work are you doing
right now?’, or other jobs conversations.
I am realised that material advancement grows very fast that we must
PC24 IO-02
catch up.
I think it is about a lack of knowledge. […] It is hard to use this innovation
PC25 IO-02
due to lack of experience and knowledge.

PC26 Maybe, if my company has settled, I might have R&D for taking care of it. IO-02

PC27 I am afraid that something undesirable could happen. IO-02

I just know recently that if we use corner bead in the outdoor, because of
PC28 learning from the previous projects, it has to be detached immediately or IO-02
cover them with a layer, because it might be rust.
I think the benefit is; the work is being effective and efficient because we
PC29 IO-02
have found new method.
We can gain trust from the owner, work faster, be more efficient, cheaper
PC30 IO-02
cost, and it is the benefit of open innovation.
I do not have R&D division, which I think is crucial to meet the succeed in
PC31 IO-02
open innovation.
I think it is because that is not our focus. […] In my level, it has not been
PC32 IO-02
the priority to do open innovation and the other innovation.
I think having R&D and doing inbound open innovation is not a necessity
PC33 IO-02
because we think that the other is still more important.
If I want to do it, I have to invest more in R&D division, and it is of course
PC34 IO-02
needed to be legalised.
PC35 Doing research takes much time. IO-02
However, if I meet my friend, we are sometimes discussing innovation such
PC36 IO-02
as ‘have you used this method before?’
I do not have R&D division, which I think is crucial to meet the succeed in
PC37 IO-02
open innovation. […] I need to have divisions, I need to have the R&D.

(We should) keep innovating and learning from every project, its deficiency
PC38 and its advantages, what I can get, and in the next project, I have to be IO-02
better. Every project has to be evaluated for the next project too.

Often, we innovate when we face something new that we have never done
PC39 IO-03
before or something we have never seen before.
Not all worker is good at handling large glass, so we innovate many times
PC40 IO-03
on how to lift it.

innovation is limited with time construction. […] to find the new method or
PC41 IO-03
the other innovation takes time and we have to spend some cost.

Many owners have no knowledge about the procedure of changing the

PC42 IO-03
design.
to find the new method or the other innovation takes time and we have to
PC43 IO-03
spend some cost.
Code Coded Sentences/ Phrases Sources
Well, I think for my company, I do not think it is worth it to do many
PC44 innovations that are considered unnecessary. That is why we innovate IO-03
when we found an issue.
PC45 We study the wrong things. IO-03
The level of understanding of particular innovation is less than what it is
PC46 IO-03
supposed to.
In Indonesia, people prefer to think conservatively instead of thinking far
PC47 IO-03
away ahead.
PC48 Many companies that do not innovate will be terminated. IO-03
Maybe if we are doing the innovation by ourselves, it takes one year.
PC49 IO-03
However, if we are collaborating, it can be faster
So, maybe it causes the wider furthest area. […] If there is stakeholder
involved, we can open our mind and see from the other point of view too.
PC50 IO-03
[…] The more people participate in this, the more brain can be involved
too, more point of view.
PC51 Maybe it will also generate better and faster work. IO-03
There are some companies that are trained to do the research, so they
have the more complete equipment. Innovation needs investment. After
we succeed, we are no longer using the equipment. However, if a company
PC52 IO-03
that is specialist in lab, which has a purpose to research, automatically,
when one research has done, they often have another research so that the
machine will be used again.
Maybe because we think more about how, not only us but for most of the
PC53 IO-03
company, how to find a profit with less cost.
PC54 We have not put some budget on it. IO-03
We have already had a thought to do open innovation even though the
PC55 IO-03
preparation has not completed yet
However, we often invite the speaker or look for experts who can teach us.
PC56 IO-03
However, if we call the institution to innovate, I guess we have not.
if there is stakeholder involved, we can open our mind and see from the
PC57 IO-03
other point of view too.
The previous machine has lower durability and capacity than the current
PC58 IO-04
machine.
Maybe the contractor is having a special case right now which insist them
PC59 to innovate, but because of the time constraint or another issue, they IO-04
cannot innovate.
One reason why I am still teaching now is that I want to develop
PC60 innovation, to keep up with times. […] That is why, if the company want to IO-04
be developed, the company has to innovate.
From the previous system that might lack can be better, so I can say it is
PC61 IO-04
changing the system.
Wood cannot be used anymore in Europe because it brings pests,
PC62 IO-04
disinfectant, and so on.
The more you innovate, the harder the work you are doing, the fewer
PC63 people do, automatically innovation emerges so that you will have less IO-04
competitor. That is the key where effort is required.
Code Coded Sentences/ Phrases Sources
The previous machine has lower durability and capacity than the current
machine. Europe machines, the one that we are using right now, are more
precise. It is more durable than the Chinese machine. For example, in a
PC64 day, we can use them in 8 working hours. If we are using machines from IO-04
China, we have to stop every three hours, before it can be used again. So,
the capacity in one workshop cannot be maximal. When we are talking
about workshop effectivity, it is different from the method.
If we are only learning from experience, like what my parent did, based on
his own experience, self-taught learner and so on, and just applied that, it
PC65 is hard. We know that education in Indonesia is too theoretical. It is so IO-04
different from what is used in the site. Automatically, the improvement to
people who is doing self-taught will be just as long as you can work.
PC66 Firstly, most importantly, is the budget. IO-04
Secondly, how much the revenue of the company. What I mean by revenue
is how much the cost cycle of the company is. […] Because for innovation,
PC67 IO-04
we, of course, need a budget for trial and error, so if no one is paying for
the innovation budget, if we innovate by ourselves, it is hard.
The point is, sometimes, it is hard for us, Indonesian to promote or
introduce the product since Indonesian is way too conventional. ‘Can we
PC68 IO-04
just use the existing?’ I think Indonesians are unwilling to put more effort
into the better result.
PC69 Yes, it takes more risk if it is a new product. IO-04
People only think of work and get profit. They usually think ‘why should I
PC70 IO-04
innovate if I can earn the profit.’
Maybe it because it is lack of preparation, or maybe due to its
PC71 IO-04
environment.
If you are only looking at someone that has done something and then the
PC72 company is just imitating or process the same work, I think it is not IO-04
innovation since everyone can do it.
It is sometimes hard for us to collaborate due to equipment limit. It is
impossible for us to always buy new equipment for particular research
which we might not use again in the future. If we are collaborating with
those that we know has the machinery, we can just collaborate with them.
PC73 IO-04
[...] Moreover, machines are not about just buying. There must be
someone who is being able to operate the machine. I think it is quite hard
since Indonesian is conventional people who sometimes reluctant to learn
new things.
I think we want to focus on our honeycomb core wall and other material
PC74 IO-04
first.
It is sometimes hard for us to collaborate due to equipment limit. […]
Moreover, machines are not about just buying. There must be someone
PC75 who is being able to operate the machine. I think it is quite hard since IO-04
Indonesian is conventional people who sometimes reluctant to learn new
things.
Code Coded Sentences/ Phrases Sources
We are not like those large-sized company which can easily make the
PC76 innovation, easily promote it, and easily sell it. Our name is not as big as IO-04
them.
Innovation in finding something new is very risky. […] There are three risks.
Firstly, when you are first doing research, whether it is succeeded or not. If
you have succeeded, you have to promote, whether the promotion is
PC77 succeeded or not, and the last one, you have to sell it. Selling things has a IO-04
risk that must be aware too. It is a triple risk. It, then, depends on the
company whether they want to take this triple risk or not. The impact must
be considered as well if three of the risk is not succeeded.
I think it is quite hard since Indonesian is conventional people who
PC78 IO-04
sometimes reluctant to learn new things.
Before collaborating, we have to discuss how to share the profit. We have
PC79 IO-04
to make a contract for it.
We innovate on how to reduce the use of material. Because the previous
PC80 IO-05
material can affect the environment.
Hence, we have to innovate, which material they understand, and material
PC81 IO-05
which can support the acceleration.
In the private project, the problem is just that human resource’s
knowledge. That is the barrier. [...] If we are talking about people in the
PC82 IO-05
remote area, the ability of human resource is different from the people in
the city.
Therefore, it is about our incapability in choosing the material. How we
know the ability of our resource. Because those who are likely to miss were
PC83 also when the material arrived, it turns out that their resources are not IO-05
competent to the new innovation, so there needs to be a knowledge
sharing.
What makes it often failed is that it is not well-planned, so in the
PC84 IO-05
implementation phase, it takes much time.

There is often a miss between planning and implementation, which means,

PC85 IO-05
people who are designing it is not 100% looking at the site condition

Because the barriers itself in construction is in the speed of sharing, which

PC86 IO-05
people are too passive.
Hmm… I think it is not necessary since, without the specific division, we can
still innovate. However, the disadvantage is that we might not be able to do
PC87 IO-05
massive innovation. I think the innovation result will be better if there is an
R&D division since they research them and keep modifying them.
PC88 There needs to be a knowledge sharing. IO-05
So, based on my opinion and my experience, do not reduce the cost by
reducing quality. It is not allowable, particularly in public project. I do not
say public construction company, but a public project. Reducing quality is
PC89 IO-05
not allowable. However, modify, or optimisation with value engineering to
reduce cost is allowable. Very allowable. However, it should meet the same
quality.
Code Coded Sentences/ Phrases Sources
There is a value between findings and research that is needed in the
PC90 IO-05
industry.
It is hard to do those innovations. Since we do not have the R&D division as
PC91 IO-05
well, we do not have time for doing it.
Since we do not have the R&D division as well, we do not have time for
PC92 IO-05
doing it.
I do not feel that Indonesia is ready to do a large innovation like that.
PC93 Because the scale of inbound open innovation must be bigger than just the IO-05
usual innovation.
So, there is a value between findings and research that is needed in the
PC94 IO-05
industry. It is often missing too. It is often not connected.
Moreover, there is a culture issue too. […] There is an issue in adopting
PC95 culture too, and sometimes politics. […] Also, as I said too, there will be a IO-05
huge culture change.
PC96 There is an issue in adopting culture too, and sometimes politics. IO-05
However, I think why the construction company has not applied this
PC97 IO-05
although there are many benefits, because it needs cost, right?
PC98 it is hard for us to share that it is a need. IO-05
However, for the small-sized company, I do not think that they have vision
PC99 and mission. I think it is more about management, whether the IO-05
management wants to give benefit to the company or not.
Firstly, what a PM must understand is knowledge management. How that
PC100 IO-05
person can bring the phenomenon or issue to innovation.
It has to be supported by the stakeholder too, not only the contractor. The
PC101 knowledge sharing or knowledge management is not only happening in the IO-05
contractor, but it also happens in the stakeholder too.
Yes, it is yes. Of course, yes. If we do not use this innovation, it can make
PC102 the project’s schedule longer. Because we cannot hand the work on time IO-06
to the client because it is crack.
The problem is, many think that they are doing the right work,
underestimating the work. Not exactly underestimating, but they think this
PC103 IO-06
is an easy job. Then, sometimes if there is a mistake, it is ok to repair it
again, and then install it again.
The worst is, those who think himself as the smartest. He considers himself
PC104 IO-06
as very smart until something small is often misses.
Other people are easy to be satisfied with their job. ‘I think this is enough
PC105 IO-06
because maybe the customer is not complaining,’ so he thinks that way.
PC106 There is also a company who has a low mentality. IO-06
We need a standard which is referring to quality because we have quality
PC107 IO-06
assurance.
This is the certificate of the slope measuring incline and this certificate is
PC108 active in 10 years. So, in 10 years, this equipment is ours. After ten years, it IO-06
becomes anyone’s equipment.
I think because we do not have the resource so that we can get support.
PC109 IO-06
[…] (and) we are hampered by the facility.
Code Coded Sentences/ Phrases Sources
The problem is in us, based on the problem that we face. That product is
PC110 IO-06
expected to solve the issue in the future.
Through that open innovation, we can be supported by the competent
PC111 IO-06
supplier or producer, so the expected result can be reached.
We still confused with the inbound open innovation one, about how to
PC112 IO-06
standardise and patent them.
PC113 It needs time, needs a discussion. IO-06
Coordination between companies is hard. Coordination, different interest.
If we are talking about open innovation, both companies need to have the
PC114 IO-06
same interest. That is the hard part in coordinating between two parties
right.
Coordination between companies is hard. Coordination, different interest.
If we are talking about open innovation, both companies need to have the
PC115 IO-06
same interest. That is the hard part in coordinating between two parties
right. It needs time, needs a discussion.
PC116 This research is based on the issue that occurs on the site. IO-07
PC117 The worker is happier because the job is easier. IO-07
In the airport, for instance, or in the yard, we use the former design of
PC118 slope measuring instrument. After we try, we evaluate. ‘Oh, it is too big,’ IO-07
so we need to make a smaller and the lighter one. Thus, we resize them,
and we make it smaller to make it easy to carry, we upgrade.
PC119 This R&D division has not been established yet. IO-07
For another company, innovation is like wasting money. We are a good
PC120 company. We can waste money. However, other company, they do not want IO-07
to waste the money.
There was insulator in this full system so that it can heat the building
PC121 underneath. We did it together, but only one house because the costs IO-07
suddenly turn expensive, so we cannot produce.
Looking at the previous one, it feels like not efficient, and then initiative
PC122 IO-08
makes a new finding.
PC123 A company will not be survived if they do not innovate. IO-08
PC124 It can have a differentiate with the other company. IO-08
The quality of the company is better, people look at our product, and they
PC125 IO-08
think it is good, and they trust us more.
So, it is actually a normal plier, but we make them be able to hook three
PC126 IO-08
cables neatly effectively.
Innovation really takes much time. The findings itself take almost two years
PC127 IO-08
for each innovation.
Other company might do this, but conventionally, not analysed and think
PC128 IO-08
carefully about its patent.
I think it is actually good because we might do not have all the equipment
and resources. […] Sometimes, we want to make something, but we do not
have the equipment, but another company has, so we are exchanging our
PC129 IO-08
knowledge and resources needed for equipment or human resources to do
this open innovation. [...] Maybe we have the equipment, they do not have
the equipment, but they have an idea.
Code Coded Sentences/ Phrases Sources
PC130 It also creates a differentiation. IO-08
We have to be ready in changing our paradigm. If we want to change the
paradigm, all people in the company from the highest to the lowest
PC131 IO-08
position has to change. However, in fact, there are many rejections. It is
hard to accepting something new.
Also, we do not patent it because we are confused about how to patent an
PC132 IO-08
innovation, which is the result of collaboration.
However, it seems a bit riskier if we compare them with internal
PC133 IO-08
innovation.
PC134 However, we only did it once because the cost is very expensive. IO-08
Many are inhibiting it from the worker because they are afraid that they
PC135 IO-08
will lose the job.
Firstly, people who are starting company has the main purpose of doing
PC136 business right either it is construction company or not. Everyone wants IO-08
profit.
The most important is that I have to be able to prioritise those three
aspects. I think from the side of an engineer, not from the point of view of
PC137 a businessman, which the most important of those three aspects of R&D is IO-08
supposedly quality. That is the most important. It is, then, followed by time
and cost.
I have to ensure that all of the members of R&D division are believing that
PC138 we are going to innovate, and we are going to be succeeded, including the IO-08
justification of why we are doing that.
PC139 It has to be socialised to all people in the company to avoid confusion. IO-08
PC140 The trust of the client can also increase. IO-09
It is usually from human resource. Because human resource in Indonesia is
paid daily. They are not the worker of the company. They work for many
constructions. If they come, they are paid daily, not under the contract.
PC141 IO-09
Therefore, maybe, one day, someone is not coming, unable to attend,
changed with the other person which we do not know the capacity. […]
The workers are not educated.
In the construction industry, there are still a few companies innovate.
PC142 IO-09
Because I think one factor is cost.
If you found an idea, you have to be brave in getting a patent for those
PC143 IO-09
innovations.
Therefore, now, many people are researching, even though some are
PC144 simple. However, the misunderstanding is then they are innovating not for IO-09
innovation, but the patent.
There are not many construction companies has their research and
development, and then they do research, and then they innovate. There
PC145 are not much, just some companies which have R&D. Therefore, IO-09
innovation in Indonesia is still an individual or small group, and even
academic has just started a bit.
Everything we are doing needs to be evaluated to find the most optimal
PC146 solution. Sometimes, the site condition makes the innovation is not IO-09
applicable, which then we have to evaluate again.
It is possible to happen. That is why we need that documentation. SOP is
PC147 IO-09
documentation; everything is written.
Code Coded Sentences/ Phrases Sources
If you found an idea, you have to be brave in getting a patent for those
PC148 IO-09
innovations.
We have to start depending on people from senior management or people
PC149 IO-09
who work on the site, such as PM.
The quality must not be worse, because we have promised to the owner to
PC150 IO-09
make this specification.
However, it should be researched so that it will be able to be accepted by
PC151 the others, can be commercialised and used by the industry, as you said IO-09
the outbound open innovation.
PC152 The company wants to keep good quality, so they try to develop. IO-09
When the contractor has a problem on the site, then they contact the
university to make a research, a collaboration. […] It is same with the
PC153 IO-09
construction industry, they find problems, and then as fast as possible,
looking for the solution.
In Japan, all contractors have a research centre. Why? Because they got an
incentive, they got tax relief. In Indonesia, we do not have that thing. The
only incentive we got is only about CSR. The company is asked to allocate
the cost for CSR. Therefore, the company get tax relief. So, CSR is a
PC154 IO-09
community service. The company is asked to make something for social.
However, for open innovation, it is still not existed yet. If the government
make the regulation about this, more company will do innovation for tax
relief.
If we can collaborate, it is good right since in the industry. We are talking
about something real. I need this, and I need that. However, in academic,
PC155 people are usually doing basic research. If the research is done based on IO-09
the real situation and researched from the root and basic by the university
or other research centres, the result can be accounted for.
It is still hard to do, and again, we do not have R&D division, which then
PC156 IO-09
takes much time for doing it while we still got many projects.

PC157 Therefore, I do not think it has an urgency at this moment to be prioritised. IO-09

For open innovation, I can think of the collaboration between university

PC158 and industry, and it has already existed from a long time, but there are not IO-09
many universities focus on it or industry that wants to pay the research.

The lecturer is called, then giving a workshop about how to improve one
PC159 equipment until the patent, and then it is brought to the market which has IO-09
not existed yet.
PC160 R&D is needed. IO-09
CEO must understand the condition on the site. There are many CEO who
PC161 IO-09
placed their people randomly because they do not know the site condition.
However, it is better if we do innovation, can make this company better, or
PC162 IO-10
neater I can say. It can also improve profit.
Code Coded Sentences/ Phrases Sources
As long as our company can still survive without innovation, I think we
PC163 should improve our performance first until one point where we have IO-10
improved enough. Then we will do the innovation afterwards.
However, maybe we will face difficulties from people, which is afraid of
PC164 IO-10
changes.
The point is, when we want to do innovation, we have an idea, but we
PC165 IO-10
have no resource.
PC166 If someone asks to do this design, we can make it. IO-10
It can be better because, from research, we can know something from the
PC167 IO-10
basic and specific fundamental to create some innovations.
However, the problem is we have no time to do that because we have no
PC168 IO-10
special division too to do this.
We are focusing on the performance this moment because it could
PC169 IO-10
increase too through collaboration.
PC170 I do not think that I have found the point where I need to do innovation. IO-10
I think more or less; open innovation will change the culture of the
PC171 IO-10
company, so everyone must be ready.
I think more or less; open innovation will change the culture of the
PC172 IO-10
company, so everyone must be ready.
PM is the one who communicates directly to the worker and the client.
Therefore, I think the capability of PM is; first, I have to make sure that the
PC173 IO-10
innovation that we have discussed is acceptable to our consumer, where
this innovation has to give benefit for the consumer and us.
It depends on the management on the site. When we have an idea, but the
PC174 IO-11
people on the site are not doing it right, it can be unsuccessful too.
I think not many contractors want to do it where nobody has done it
PC175 before. […] We hope that they really want to be changed through this IO-11
innovation.

Moreover, if the innovation is not going as it is planned, the risk is high, so

people do not do that and use the conventional method. […] I think not
PC176 IO-11
many contractors want to do it where nobody has done it before. […] To
start something new, it means that you have to prepare for the risk as well.

To start something new, it means that you have to prepare for the risk as
PC177 IO-11
well.
The point is as long as our company is doing innovation for the
PC178 development of our company, I think it is not that necessary to have a IO-11
certain division which is only taking care of innovation.
Code Coded Sentences/ Phrases Sources

The company that I work in have conventional thinking that people are too
afraid to change and being more open to the external stakeholder. […]
However, the problem is, it is hard to change the old habit, change the
entrenched habit. Employee’s and company’s habit are hard to be
changed. That is the first. The second one, in our company, maybe the
PC179 employees want to change, but the boss ‘does not want to be changed’. IO-11
The boss ‘does not want to be changed’ while the company needs to spend
more cost. [...] The thing that makes it complex is, internal innovation is
usually done by one division only, while inbound open innovation is done
by all people in the company from people in top management to those in
the lowest position. Everyone must change.
Alternatively, maybe, some are reluctant to do inbound open innovation
PC180 IO-11
because the risk is high.
PC181 I think it is more about the cost. IO-11
PC182 Because my company has no ability to apply this innovation. IO-11
I think I might recommend them if they have an idea to make an
innovation which makes them have to collaborate to pursue the objective
of that innovation. Do not look too much to the risk; just look at the result.
PC183 IO-11
If it is failed, OK, this is the risk, but if it is a success, the impact of its
success must be seen as well. Sometimes, we are too afraid to do
something new because we are just too afraid of trying.
PC184 Without innovation, maybe our company will not be a success. IO-12
Actually, the driving factor of why we are doing this is we used to face
PC185 IO-12
problem regarding this
I can admit that our company did not do many innovations, but the point
PC186 is, as long as we have an idea and the other resources, we have to keep IO-12
innovating. Otherwise, our company will not survive.
PC187 Being different in the market is very important these days. IO-12
We have never organised our material in detailed, but now, with that
material tracking, we have to do that. It benefits us a lot particularly
regarding the schedule and budget since through that material tracking,
PC188 and we can track everything from the material ordered, the quantity, how IO-12
many that we have not ordered, and so on. It might not impact the quality
that much, but since the management is neater, it is quite affecting cost
and time.
Well, I think open innovation is hard to be done because of its risk. We do
PC189 not know whether it will profit or not only based on the research that has IO-12
been done.
Maybe I have the idea, but not the resources. I can ask the other company
PC190 IO-12
which has the resources to collaborate and innovate together.
Our intention to do inbound open innovation is based on case or issue on
PC191 IO-12
the site.

Hm… I can agree that it really differentiates the market since open
PC192 IO-12
innovation must be a large scale of innovation.

When we are not found a huge issue, which insists us to innovate with the
PC193 IO-12
external stakeholder, it is better for us not to do it.
Code Coded Sentences/ Phrases Sources
PC194 We have to be very settled and very prepared. IO-12

PC195 It seems hard for a company in Indonesia since we a conventional mind. IO-12

Well, I think open innovation is hard to be done because of its risk. We do

PC196 not know whether it will profit or not only based on the research that has IO-12
been done.
PC197 We need to spend some cost. IO-12
PC198 We have to be very settled and very prepared. IO-12

Unless it is a large contractor like public contractors who are very large and
PC199 IO-12
have their research and development team, it might be different.

We actually rarely did innovation on the construction site unless there is an

PC200 IO-13
issue or special case.
Therefore, there is a plus and a minus. If it is a good innovation, the
PC201 company can be more developed than other company. Otherwise, it might IO-13
reduce revenue.
That is what we do to make it look neater every time we are looking to the
PC202 IO-13
schedule.
Moreover, the most worker in Indonesia is not educated. Therefore, it is
PC203 sometimes hard to manage so many people and to explain things on what IO-13
we are doing now since they sometimes do not understand.
PC204 The innovation itself has a chance of failure. IO-13
However, the key success is in the site management, not the innovation,
more to the ability of the worker. […] I think it affects the project’s
schedule to be faster. Howver, it not only depends on it but also on those
who are doing it, the people on the site. Therefore, site management must
PC205 be good. I mean, you are doing anything with the material, right? If the IO-13
material has come, but the site management is bad, our project will be late
even though the material has well-scheduled. It is all need to be balanced.
If the site management is good, but the material management is bad, it is
same, right?
I cannot remember clearly, but what I know is, most failure is because of
PC206 the human factor. Every people have a different objective, different task, IO-13
and construction is the work of many people, not only the foreman only.
Looking that this material schedule is succeeded and easier the work, we
PC207 decided to make R&D to make more innovation to make our work faster, IO-13
cheaper, and maybe better quality.
For now, we have no division for it. However, now, I and people from top
PC208 management are discussing to make R&D division since we think that it will IO-13
be important.
It is very different to material or equipment innovation because
PC209 management needs teamwork, the work of many people, which head is IO-13
different one to the other.
Code Coded Sentences/ Phrases Sources
I think maybe through open innovation, and we can exchange our
resource. In doing innovation, we need some resources, such as educated
PC210 IO-13
worker, equipment, idea, cost, and so on. Sometimes, we cannot satisfy all
of them.
PC211 Again, we might do it in the future when we look that it is necessary. IO-13
Simple answer, we are not ready yet. Again, we might do it in the future
PC212 when we look that it is necessary, and we have prepared R&D to do those IO-13
innovations.
However, the problem is, it is hard if we get those innovations from the
university. We know that university is an academic institution. It means
PC213 that they are making everything based on theory. That is true, that is not IO-13
wrong. However, the wrong thing is, when they are doing it only based on
theory without thinking about practical.
If there is a new innovation, there must be an old habit or tradition that
PC214 IO-13
needs to be changed and regulate, including the PM itself.
Before, we have to learn how to do it, how to make a patent for that and
PC215 IO-13
so on since the innovation is owned by a multi-company.
Oh! Also, knowledge. We have to gather our information about those
PC216 inbound open innovation first, about how to do that, the risk, the benefit, IO-13
the patent issue, and so on.
Maybe we will do once our R&D has settled, but I think for the beginning,
PC217 we will do just internal innovation by pushing our R&D until it gets more IO-13
experience.

Before, we have to learn how to do it, how to make a patent for that and
PC218 IO-13
so on since the innovation is owned by a multi-company.
Appendix 7: The result of Axial Coding
A. Closed Innovation – Benefits

Closed Code from

Code Innovation - Coded Sentences/ Phrases Source Preliminary
Benefit Concept
Innovation creates an additional value which differentiates us
IO-01 PC4
from the other companies.
The more you innovate, the harder the work you are doing, the
fewer people do, automatically innovation emerges so that you
IO-04 PC63
will have less competitor. That is the key where effort is
G1 Differentiation required.
It can have a differentiate with the other company. IO-08 PC124
Being different in the market is very important these days. IO-12 PC187
Therefore, there is a plus and a minus. If it is a good innovation,
the company can be more developed than other company. IO-13 PC201
Otherwise, it might reduce revenue.
Making the We are happy, the client is happy, the worker might be happy
G2 IO-01 PC5
client happy too.
The previous machine has lower durability and capacity than the
current machine. Europe machines, the one that we are using
right now, are more precise. It is more durable than the Chinese
Maximising the machine. For example, in a day, we can use them in 8 working
G3 IO-04 PC64
work hours. If we are using machines from China, we have to stop
every three hours, before it can be used again. So, the capacity
in one workshop cannot be maximal. When we are talking about
workshop effectivity, it is different from the method.
Supporting Hence, we have to innovate, which material they understand,
G4 IO-05 PC81
Acceleration and material which can support the acceleration.
G5 Easier the work The worker is happier because the job is easier. IO-07 PC117
Preventing
client's Yes, it is yes. Of course, yes. If we do not use this innovation, it
G6 complaint due can make the project’s schedule longer. Because we cannot IO-06 PC102
to bad quality, hand the work on time to the client because it is crack.
cost, and time
Good The quality of the company is better, people look at our product,
G7 IO-08 PC125
reputation and they think it is good, and they trust us more.
So, it is actually a normal plier, but we make them be able to
IO-08 PC126
hook three cables neatly effectively.
However, it is better if we do innovation, can make this company
IO-10 PC162
better, or neater I can say. It can also improve profit.
We have never organised our material in detailed, but now, with
that material tracking, we have to do that. It benefits us a lot
particularly regarding the schedule and budget since through
G8 Neater work
that material tracking, and we can track everything from the
IO-12 PC188
material ordered, the quantity, how many that we have not
ordered, and so on. It might not impact the quality that much,
but since the management is neater, it is quite affecting cost and
time.
That is what we do to make it look neater every time we are
IO-13 PC202
looking to the schedule.
Increasing
G9 The trust of the client can also increase. IO-09 PC140
Client's Trust
Improving However, it is better if we do innovation, can make this company
G10 IO-10 PC162
Profit better, or neater I can say. It can also improve profit.
B. Closed Innovation – Driving Factors

Closed Code from

Code Innovation - Coded Sentences/ Phrases Source Preliminary
Driving Factor Concept
If we are comparing the construction industry and the other
industry, we are far more primitive. [...]They are really
Willingness to
treating their human resource well by doing coaching and
treat their
G11 meeting. Then, we reflected ourselves that we have never IO-01 PC1
human
had a meeting other than a technical meeting. That is the
resource well
point when we thought we that we have to innovate in
human resource. [...] We have to be opened to the worker.
I am realised that material advancement grows very fast that
IO-02 PC24
we must catch up.
The rapid
The previous machine has lower durability and capacity than
G12 advancement IO-04 PC58
the current machine.
of material
Looking at the previous one, it feels like not efficient, and
IO-08 PC122
then initiative makes a new finding.
Often, we innovate when we face something new that we
have never done before or something we have never seen IO-03 PC39
Depending on before.
the case Maybe the contractor is having a special case right now
G13
(owner's which insist them to innovate, but because of the time IO-04 PC59
requirement) constraint or another issue, they cannot innovate.
We actually rarely did innovation on the construction site
IO-13 PC200
unless there is an issue or special case.
We are keeping up with times, new things, new concept
IO-01 PC2
through innovation.
Keeping up
One reason why I am still teaching now is that I want to
with era, to
develop innovation, to keep up with times. […] That is why,
G14 make the IO-04 PC60
if the company want to be developed, the company has to
company
innovate.
developed
Without innovation, maybe our company will not be a
IO-12 PC184
success.
Previous
From the previous system that might lack can be better, so I
G15 system is IO-04 PC61
can say it is changing the system.
lacking
Disallow to
use previous
technology Wood cannot be used anymore in Europe because it brings
G16 IO-04 PC62
due to pests, disinfectant, and so on.
regulation
changes
Helping the We innovate on how to reduce the use of material. Because
G17 IO-05 PC80
environment the previous material can affect the environment.
This research is based on the issue that occurs on the site. IO-07 PC116
Actually, the driving factor of why we are doing this is we
Depending on IO-12 PC185
G18 used to face problem regarding this
the issue
We actually rarely did innovation on the construction site
IO-13 PC200
unless there is an issue or special case.
Companies do innovation to make their company survive. IO-01 PC3
A company will not be survived if they do not innovate. IO-08 PC123
Preventing I can admit that our company did not do many innovations,
G19
Termination but the point is, as long as we have an idea and the other
IO-12 PC186
resources, we have to keep innovating. Otherwise, our
company will not survive.
C. Closed Innovation – Barriers
Closed Code from
Code Innovation - Coded Sentences/ Phrases Source Preliminary
Barrier Concept
Too Focus on
G20 They are too focus on what they are doing, with the work. IO-01 PC6
the work
It is a bit difficult to be applied since trust between each other
G21 Trust IO-01 PC7
must be built in advance.
Moreover, in the end, we could not apply innovation because we
do not know about that. Our enthusiasm was more significant
IO-01 PC8
than our knowledge of that innovation. […] Yes, due to a lack of
knowledge because it is not our expertise.
I think it is about a lack of knowledge. […] It is hard to use this
IO-02 PC25
innovation due to lack of experience and knowledge.
Not all worker is good at handling large glass, so we innovate
IO-03 PC40
many times on how to lift it.
If we are only learning from experience, like what my parent did,
based on his own experience, self-taught learner and so on, and
just applied that, it is hard. We know that education in Indonesia is
IO-04 PC65
too theoretical. It is so different from what is used in the site.
Lack of Automatically, the improvement to people who is doing self-
Knowledge taught will be just as long as you can work.
G22 from the In the private project, the problem is just that human resource’s
contractor/ knowledge. That is the barrier. [...] If we are talking about people
IO-05 PC82
Worker in the remote area, the ability of human resource is different from
the people in the city.
It is usually from human resource. Because human resource in
Indonesia is paid daily. They are not the worker of the company.
They work for many constructions. If they come, they are paid
daily, not under the contract. Therefore, maybe, one day, IO-09 PC141
someone is not coming, unable to attend, changed with the other
person which we do not know the capacity. […] The workers are
not educated.
Moreover, the most worker in Indonesia is not educated.
Therefore, it is sometimes hard to manage so many people and to
IO-13 PC203
explain things on what we are doing now since they sometimes do
not understand.
I knew the fact that the admin staff here has no experience in
G23 Assumption taking care of the task, but I was assumed that she could handle it IO-01 PC9
by reading.
Therefore, it is about our incapability in choosing the material.
How we know the ability of our resource. Because those who are
likely to miss were also when the material arrived, it turns out that IO-05 PC83
Lack of their resources are not competent to the new innovation, so there
G24
experience needs to be a knowledge sharing.
It depends on the management on the site. When we have an
idea, but the people on the site are not doing it right, it can be IO-11 PC174
unsuccessful too.
Not settled Maybe, if my company has settled, I might have R&D for taking
G25 IO-02 PC26
company care of it.
innovation is limited with time construction. […] to find the new
method or the other innovation takes time and we have to spend IO-03 PC41
Time some cost.
G26
Constraint Innovation really takes much time. The findings itself take almost
IO-08 PC127
two years for each innovation.
Firstly, most importantly, is the budget. IO-04 PC66
Lack of
Knowledge Many owners have no knowledge about the procedure of
G27 IO-03 PC42
from the changing the design.
owner
C. Closed Innovation – Barriers (Continue)
Code from
Closed Innovation -
Code Coded Sentences/ Phrases Source Preliminary
Barrier
Concept
to find the new method or the other innovation takes time
IO-03 PC43
and we have to spend some cost.
Secondly, how much the revenue of the company. What I
mean by revenue is how much the cost cycle of the company
G28 Cost Constraint is. […] Because for innovation, we, of course, need a budget IO-04 PC67
for trial and error, so if no one is paying for the innovation
budget, if we innovate by ourselves, it is hard.
In the construction industry, there are still a few companies
IO-09 PC142
innovate. Because I think one factor is cost.
Well, I think for my company, I do not think it is worth it to
do many innovations that are considered unnecessary. That IO-03 PC44
is why we innovate when we found an issue.
G29 Unnecessity As long as our company can still survive without innovation, I
think we should improve our performance first until one
IO-10 PC163
point where we have improved enough. Then we will do the
innovation afterwards.
G30 Learn the wrong thing We study the wrong things. IO-03 PC45
Not understood the The level of understanding of particular innovation is less
G31 IO-03 PC46
innovation than what it is supposed to.
In Indonesia, people prefer to think conservatively instead of
IO-03 PC47
thinking far away ahead.
The point is, sometimes, it is hard for us, Indonesian to
promote or introduce the product since Indonesian is way
too conventional. ‘Can we just use the existing?’ I think IO-04 PC68
Indonesians are unwilling to put more effort into the better
G32 Conservative thinking
result.
However, maybe we will face difficulties from people, which
IO-10 PC164
is afraid of changes.
I think not many contractors want to do it where nobody has
done it before. […] We hope that they really want to be IO-11 PC175
changed through this innovation.
I am afraid that something undesirable could happen. IO-02 PC27
Yes, it takes more risk if it is a new product. IO-04 PC69
Moreover, if the innovation is not going as it is planned, the
risk is high, so people do not do that and use the
conventional method. […] I think not many contractors want
IO-11 PC176
to do it where nobody has done it before. […] To start
G33 Risk
something new, it means that you have to prepare for the
risk as well.
Well, I think open innovation is hard to be done because of
its risk. We do not know whether it will profit or not only IO-12 PC189
based on the research that has been done
The innovation itself has a chance of failure. IO-13 PC204
Human Thought to only People only think of work and get profit. They usually think
G34 IO-04 PC70
work and get profit ‘why should I innovate if I can earn the profit.’
The point is, sometimes, it is hard for us, Indonesian to
promote or introduce the product since Indonesian is way
Hard to promote or
G35 too conventional. ‘Can we just use the existing?’ I think IO-04 PC68
introduce the product
Indonesians are unwilling to put more effort into the better
result.
Maybe it because it is lack of preparation, or maybe due to
IO-04 PC71
its environment.
G36 Lack of preparation
What makes it often failed is that it is not well-planned, so in
IO-05 PC84
the implementation phase, it takes much time.
Planner is not looking There is often a miss between planning and implementation,
G37 at the real condition, which means, people who are designing it is not 100% IO-05 PC85
not well-planned looking at the site condition.
C. Closed Innovation – Barriers (Continue)
Code from
Closed Innovation
Code Coded Sentences/ Phrases Source Preliminary
- Barrier
Concept
Slow in sharing/
Because the barriers itself in construction is in the speed of
G38 promoting IO-05 PC86
sharing, which people are too passive.
innovation
Different mindset
There is often a miss between planning and implementation,
between
G39 which means, people who are designing it is not 100% looking at IO-05 PC85
economics and
the site condition.
engineers
The problem is, many think that they are doing the right work,
Underestimating underestimating the work. Not exactly underestimating, but
G40 IO-06 PC103
the work they think this is an easy job. Then, sometimes if there is a
mistake, it is ok to repair it again, and then install it again.
The worst is, those who think himself as the smartest. He
People think they
G41 considers himself as very smart until something small is often IO-06 PC104
are the smartest
misses.
Easy to be
Other people are easy to be satisfied with their job. ‘I think this
satisfied with the
G42 is enough because maybe the customer is not complaining,’ so IO-06 PC105
result of their
he thinks that way.
work
G43 Low Mentality There is also a company who has a low mentality. IO-06 PC106
Other company might do this, but conventionally, not analysed
IO-08 PC128
and think carefully about its patent.
G44 Patent
If you found an idea, you have to be brave in getting a patent for
IO-09 PC143
those innovations.
Misunderstanding:
Therefore, now, many people are researching, even though
Innovation not for
G45 some are simple. However, the misunderstanding is then they IO-09 PC144
innovation, but for
are innovating not for innovation, but the patent.
patent
There are not many construction companies has their research
and development, and then they do research, and then they
Not having the
G46 innovate. There are not much, just some companies which have IO-09 PC145
R&D Division
R&D. Therefore, innovation in Indonesia is still an individual or
small group, and even academic has just started a bit.
Therefore, there is a plus and a minus. If it is a good innovation,
G47 Reducing Revenue the company can be more developed than other company. IO-13 PC201
Otherwise, it might reduce revenue.
It depends on the management on the site. When we have an
idea, but the people on the site are not doing it right, it can be IO-11 PC174
unsuccessful too.
However, the key success is in the site management, not the
innovation, more to the ability of the worker. […] I think it
affects the project’s schedule to be faster. Howver, it not only
Poor Site
G48 depends on it but also on those who are doing it, the people on
Management
the site. Therefore, site management must be good. I mean, you
IO-13 PC205
are doing anything with the material, right? If the material has
come, but the site management is bad, our project will be late
even though the material has well-scheduled. It is all need to be
balanced. If the site management is good, but the material
management is bad, it is same, right?
I cannot remember clearly, but what I know is, most failure is
Different
because of the human factor. Every people have a different
G49 Objective of the IO-13 PC206
objective, different task, and construction is the work of many
workers
people, not only the foreman only.
Therefore, there is a plus and a minus. If it is a good innovation,
G50 Technical Issue the company can be more developed than other company. IO-13 PC201
Otherwise, it might reduce revenue.
D. Closed Innovation – Others
Code from
Code Closed Innovation Phrases Source Preliminary
Concept
I just know recently that if we use corner bead in the
outdoor, because of learning from the previous projects, it
IO-02 PC28
has to be detached immediately or cover them with a layer,
because it might be rust.
In the airport, for instance, or in the yard, we use the
former design of slope measuring instrument. After we try,
we evaluate. ‘Oh, it is too big,’ so we need to make a IO-07 PC118
smaller and the lighter one. Thus, we resize them, and we
Learning from the
G51 make it smaller to make it easy to carry, we upgrade.
previous experience
Everything we are doing needs to be evaluated to find the
most optimal solution. Sometimes, the site condition
IO-09 PC146
makes the innovation is not applicable, which then we have
to evaluate again.
Looking that this material schedule is succeeded and easier
the work, we decided to make R&D to make more
IO-13 PC207
innovation to make our work faster, cheaper, and maybe
better quality.
It is possible to happen. That is why we need that
G52 Docummentation documentation. SOP is documentation; everything is IO-09 PC147
written.
If you found an idea, you have to be brave in getting a
G53 Be Brave IO-09 PC148
patent for those innovations.
Start Depending on We have to start depending on people from senior
G54 IO-09 PC149
Senior Management management or people who work on the site, such as PM.
Research and development handle that I told you about. I
saw my friend’s company has no Research and
IO-01 PC10
development division, but I think that is very important.
Therefore, I make one.
Hmm… I think it is not necessary since, without the specific
division, we can still innovate. However, the disadvantage is
G55 R&D is Important
that we might not be able to do massive innovation. I think IO-05 PC87
the innovation result will be better if there is an R&D division
since they research them and keep modifying them.
For now, we have no division for it. However, now, I and
people from top management are discussing to make R&D IO-13 PC208
division since we think that it will be important.
Construction industry
If we are comparing the construction industry and the
G56 is primitive in terms of IO-01 PC11
other industry, we are far more primitive
innovation
Be prepared for the To start something new, it means that you have to prepare
G57 IO-11 PC177
risk for the risk as well.
If you are only looking at someone that has done
Misconception of something and then the company is just imitating or
G58 IO-04 PC72
innovation: Imitation process the same work, I think it is not innovation since
everyone can do it.
There needs to be a knowledge sharing. IO-05 PC88
G59 Knowledge sharing The quality must not be worse, because we have promised
IO-09 PC150
to the owner to make this specification.
So, based on my opinion and my experience, do not reduce
the cost by reducing quality. It is not allowable, particularly
Do not reduce cost by in public project. I do not say public construction company,
G60 jeopardising the but a public project. Reducing quality is not allowable. IO-05 PC89
quality However, modify, or optimisation with value engineering to
reduce cost is allowable. Very allowable. However, it should
meet the same quality.
Standard of quality
We need a standard which is referring to quality because
G61 through Quality IO-06 PC107
we have quality assurance.
Assurance
D. Closed Innovation – Others (Continue)
Code from
Closed
Code Phrases Source Preliminary
Innovation
Concept
This is the certificate of the slope measuring incline and
10 years patent this certificate is active in 10 years. So, in 10 years, this
G62 IO-06 PC108
certificate equipment is ours. After ten years, it becomes anyone’s
equipment.
Innovation However, it should be researched so that it will be able to
should be be accepted by the others, can be commercialised and
G63 IO-09 PC151
applicable to used by the industry, as you said the outbound open
industry innovation.
Misconception:
As long as our
company is
The point is as long as our company is doing innovation
doing innovation
for the development of our company, I think it is not that
G64 for the IO-11 PC178
necessary to have a certain division which is only taking
development of
care of innovation.
the company,
R&D is
unnecessary
It is very different to material or equipment innovation
G65 Team work because management needs teamwork, the work of IO-13 PC209
many people, which head is different one to the other.
E. Open Innovation – Benefits
Code from
Open Innovation -
Code Coded Sentences/ Phrases Source Preliminary
Benefits
Concept
The process of
Maybe if we are doing the innovation by ourselves, it takes
G66 innovation will be IO-03 PC49
one year. However, if we are collaborating, it can be faster
faster
So, maybe it causes the wider furthest area. […] If there is
Wider area of stakeholder involved, we can open our mind and see from
G67 innovation and new the other point of view too. […] The more people participate IO-03 PC50
point of view in this, the more brain can be involved too, more point of
view.
There is a value between findings and research that is
IO-05 PC90
needed in the industry.
If we can collaborate, it is good right since in the industry.
Value between
We are talking about something real. I need this, and I need
findings and research
that. However, in academic, people are usually doing basic
(research is IO-09 PC155
G68 research. If the research is done based on the real situation
theoretical, while
and researched from the root and basic by the university or
construction
other research centres, the result can be accounted for.
company is practical)
It can be better because, from research, we can know
something from the basic and specific fundamental to create IO-10 PC167
some innovations.
Improve employee's
I think the benefit is; the work is being effective and efficient
G69 work efficiency and IO-02 PC29
because we have found new method.
effectiveness
It means that their competitiveness is increasing and
IO-01 PC16
different to the market.
It also creates a differentiation. IO-08 PC130
G70 Differentiation
Hm… I can agree that it really differentiates the market since
IO-12 PC192
open innovation must be a large scale of innovation.

Increasing
It means that their competitiveness is increasing and
G71 Competitive IO-01 PC16
different to the market.
advantage
Getting knowledge
G72 Imagine if there is no knowledge from the others. IO-01 PC17
from others
Open Innovation I think open innovation that I will do will give a big step for
G73 could be a big step my company instead of the general innovation since when IO-01 PC18
for the company we collaborate with the other institution.
We can gain trust from the owner, work faster, be more
Gaining trust from
G74 efficient, cheaper cost, and it is the benefit of open IO-02 PC30
owner
innovation.
We can gain trust from the owner, work faster, be more
efficient, cheaper cost, and it is the benefit of open IO-02 PC30
G75 Work Faster
innovation.
Maybe it will also generate better and faster work. IO-03 PC51
We can gain trust from the owner, work faster, be more
G76 Cheaper Cost efficient, cheaper cost, and it is the benefit of open IO-02 PC30
innovation.
G77 Better Work Result Maybe it will also generate better and faster work. IO-03 PC51
There are some companies that are trained to do the
research, so they have the more complete equipment.
Innovation needs investment. After we succeed, we are no
Using Others'
G78 longer using the equipment. However, if a company that is IO-03 PC52
Resources
specialist in lab, which has a purpose to research,
automatically, when one research has done, they often have
another research so that the machine will be used again.
Be Supported by the Through that open innovation, we can be supported by the
G79 competent Supplier competent supplier or producer, so the expected result can IO-06 PC111
or Producer be reached.
F. Open Innovation – Driving Factors
Open
Code from
Innovation -
Code Coded Sentences/ Phrases Source Preliminary
Driving
Concept
Factors
Reflecting
As a construction company, we looked from the construction company in other
G80 from other IO-01 PC12
countries
country
How we get an idea for innovation, we should look from the other, we see from
G81 Necessity IO-01 PC13
their work, especially from the other company.
Impossible to
G82 It is impossible if we send our worker to join the training in another company. IO-01 PC14
do training
Lack of
G83 We lack knowledge. IO-01 PC15
Knowledge
Preventing
G84 Many companies that do not innovate will be terminated. IO-03 PC48
Termination
It is sometimes hard for us to collaborate due to equipment limit. It is
impossible for us to always buy new equipment for particular research which
we might not use again in the future. If we are collaborating with those that we
know has the machinery, we can just collaborate with them. [...] Moreover, IO-04 PC73
machines are not about just buying. There must be someone who is being able
to operate the machine. I think it is quite hard since Indonesian is conventional
people who sometimes reluctant to learn new things.
I think because we do not have the resource so that we can get support. […]
IO-06 PC109
(and) we are hampered by the facility.
I think it is actually good because we might do not have all the equipment and
Not having resources. […] Sometimes, we want to make something, but we do not have the
G85
resources equipment, but another company has, so we are exchanging our knowledge and
IO-08 PC129
resources needed for equipment or human resources to do this open
innovation. [...] Maybe we have the equipment, they do not have the
equipment, but they have an idea.
The point is, when we want to do innovation, we have an idea, but we have no
IO-10 PC165
resource.
Maybe I have the idea, but not the resources. I can ask the other company
IO-12 PC190
which has the resources to collaborate and innovate together.
I think maybe through open innovation, and we can exchange our resource. In
doing innovation, we need some resources, such as educated worker, IO-13 PC210
equipment, idea, cost, and so on. Sometimes, we cannot satisfy all of them.
Keep
developing
G86 by keeping The company wants to keep good quality, so they try to develop. IO-09 PC152
the good
quality
If someone asks to do this design, we can make it. IO-10 PC166
Depending
G87 Our intention to do inbound open innovation is based on case or issue on the
on the case IO-12 PC191
site.
The problem is in us, based on the problem that we face. That product is
IO-06 PC110
expected to solve the issue in the future.
When the contractor has a problem on the site, then they contact the university
Depending
to make a research, a collaboration. […] It is same with the construction
G88 on Issue IO-09 PC153
industry, they find problems, and then as fast as possible, looking for the
Occurring
solution.
Our intention to do inbound open innovation is based on case or issue on the
IO-12 PC191
site.
In Japan, all contractors have a research centre. Why? Because they got an
incentive, they got tax relief. In Indonesia, we do not have that thing. The only
incentive we got is only about CSR. The company is asked to allocate the cost
G89 Incentive for CSR. Therefore, the company get tax relief. So, CSR is a community service. IO-09 PC154
The company is asked to make something for social. However, for open
innovation, it is still not existed yet. If the government make the regulation
about this, more company will do innovation for tax relief.
G. Open Innovation – Barriers
Code from
Open Innovation -
Code Coded Sentences/ Phrases Source Preliminary
Barriers
Concept
I do not have R&D division, which I think is crucial to meet the
IO-02 PC31
succeed in open innovation.
It is hard to do those innovations. Since we do not have the
IO-05 PC91
R&D division as well, we do not have time for doing it.
Not having the R&D This R&D division has not been established yet. IO-07 PC119
G90
Division It is still hard to do, and again, we do not have R&D division,
which then takes much time for doing it while we still got IO-09 PC156
many projects.
However, the problem is we have no time to do that because
IO-10 PC168
we have no special division too to do this.
Since we do not have the R&D division as well, we do not have
IO-05 PC92
time for doing it.
G91 Lack of time
However, the problem is we have no time to do that because
IO-10 PC168
we have no special division too to do this.
I think it is because that is not our focus. […] In my level, it has
not been the priority to do open innovation and the other IO-02 PC32
innovation.
Maybe because we think more about how, not only us but for
IO-03 PC53
most of the company, how to find a profit with less cost.
Not the Focus, not a
G92 I think we want to focus on our honeycomb core wall and
priority IO-04 PC74
other material first.
Therefore, I do not think it has an urgency at this moment to
IO-09 PC157
be prioritised.
We are focusing on the performance this moment because it
IO-10 PC169
could increase too through collaboration.
I think having R&D and doing inbound open innovation is not a
necessity because we think that the other is still more IO-02 PC33
important.
I do not think that I have found the point where I need to do
IO-10 PC170
innovation.
G93 Unnecessity
When we are not found a huge issue, which insists us to
innovate with the external stakeholder, it is better for us not to IO-12 PC193
do it.
Again, we might do it in the future when we look that it is
IO-13 PC211
necessary.
If I want to do it, I have to invest more in R&D division, and it is
G94 Legalised R&D IO-02 PC34
of course needed to be legalised.
Have not put some
G95 We have not put some budget on it. IO-03 PC54
budget
Therefore, we have not applied this in any of our projects, and
I still do not know much about it. It might be ready in one or IO-01 PC19
two years after all have been ready.
We have already had a thought to do open innovation even
IO-03 PC55
though the preparation has not completed yet.
It is sometimes hard for us to collaborate due to equipment
limit. […] Moreover, machines are not about just buying. There
Lack of Preparation:
must be someone who is being able to operate the machine. I IO-04 PC73
Knowledge,
G96 think it is quite hard since Indonesian is conventional people
material, Human
who sometimes reluctant to learn new things.
Resource
I do not feel that Indonesia is ready to do a large innovation
like that. Because the scale of inbound open innovation must IO-05 PC93
be bigger than just the usual innovation.
We have to be very settled and very prepared. IO-12 PC194
Simple answer, we are not ready yet. Again, we might do it in
the future when we look that it is necessary, and we have IO-13 PC212
prepared R&D to do those innovations.
G. Open Innovation – Barriers (Continue)
Open Code from
Code Innovation - Coded Sentences/ Phrases Source Preliminary
Barriers Concept
Reputation, We are not like those large-sized company which can easily make the
G97 not famous innovation, easily promote it, and easily sell it. Our name is not as big as IO-04 PC76
company them.
Collaborating So, there is a value between findings and research that is needed in the
IO-05 PC94
with industry. It is often missing too. It is often not connected.
academic is
However, the problem is, it is hard if we get those innovations from the
often too
G98 university. We know that university is an academic institution. It means
technical and
that they are making everything based on theory. That is true, that is not IO-13 PC213
cannot be
wrong. However, the wrong thing is, when they are doing it only based on
applied to the
theory without thinking about practical.
site
Maybe the prescriptive mind can halt the company to innovate more. IO-01 PC20
Moreover, there is a culture issue too. […] There is an issue in adopting
culture too, and sometimes politics. […] Also, as I said too, there will be a IO-05 PC95
huge culture change.
We have to be ready in changing our paradigm. If we want to change the
paradigm, all people in the company from the highest to the lowest
IO-08 PC131
position has to change. However, in fact, there are many rejections. It is
hard to accepting something new.
I think more or less; open innovation will change the culture of the
IO-10 PC171
company, so everyone must be ready.
Culture The company that I work in have conventional thinking that people are
change/ too afraid to change and being more open to the external stakeholder.
G99
Conventional […] However, the problem is, it is hard to change the old habit, change
mind the entrenched habit. Employee’s and company’s habit are hard to be
changed. That is the first. The second one, in our company, maybe the
employees want to change, but the boss ‘does not want to be changed’. IO-11 PC179
The boss ‘does not want to be changed’ while the company needs to
spend more cost. [...] The thing that makes it complex is, internal
innovation is usually done by one division only, while inbound open
innovation is done by all people in the company from people in top
management to those in the lowest position. Everyone must change.
It seems hard for a company in Indonesia since we a conventional mind IO-12 PC195
If there is a new innovation, there must be an old habit or tradition that
IO-13 PC214
needs to be changed and regulate, including the PM itself.
G100 Politics There is an issue in adopting culture too, and sometimes politics. IO-05 PC96
We still confused with the inbound open innovation one, about how to
IO-06 PC112
standardise and patent them.
Also, we do not patent it because we are confused about how to patent
G101 Patent IO-08 PC132
an innovation, which is the result of collaboration.
Before, we have to learn how to do it, how to make a patent for that and
IO-13 PC215
so on since the innovation is owned by a multi-company.
Innovation in finding something new is very risky. […] There are three
risks. Firstly, when you are first doing research, whether it is succeeded or
not. If you have succeeded, you have to promote, whether the promotion
is succeeded or not, and the last one, you have to sell it. Selling things has IO-04 PC77
a risk that must be aware too. It is a triple risk. It, then, depends on the
company whether they want to take this triple risk or not. The impact
must be considered as well if three of the risk is not succeeded.
G102 Risk
However, it seems a bit riskier if we compare them with internal
IO-08 PC133
innovation.
Alternatively, maybe, some are reluctant to do inbound open innovation
IO-11 PC180
because the risk is high.
Well, I think open innovation is hard to be done because of its risk. We do
not know whether it will profit or not only based on the research that has IO-12 PC196
been done
G. Open Innovation – Barriers (Continue)
Code from
Open Innovation
Code Coded Sentences/ Phrases Source Preliminary
- Barriers
Concept
However, I think why the construction company has not applied this
IO-05 PC97
although there are many benefits, because it needs cost, right?
For another company, innovation is like wasting money. We are a
G103 Cost constraint good company. We can waste money. However, other company, they IO-07 PC120
do not want to waste the money.
I think it is more about the cost. IO-11 PC181
We need to spend some cost. IO-12 PC197
Misconception of
For open innovation, I can think of the collaboration between
OI: Company is
university and industry, and it has already existed from a long time,
G104 reluctant to pay IO-09 PC158
but there are not many universities focus on it or industry that wants
University's
research to pay the research.
In Japan, all contractors have a research centre. Why? Because they
got an incentive, they got tax relief. In Indonesia, we do not have
that thing. The only incentive we got is only about CSR. The company
No incentive/
is asked to allocate the cost for CSR. Therefore, the company get tax
G105 government IO-09 PC154
relief. So, CSR is a community service. The company is asked to make
support
something for social. However, for open innovation, it is still not
existed yet. If the government make the regulation about this, more
company will do innovation for tax relief.
Because my company has no ability to apply this innovation. IO-11 PC182
No Oh! Also, knowledge. We have to gather our information about
G106
ability/knowledge those inbound open innovation first, about how to do that, the risk, IO-13 PC216
the benefit, the patent issue, and so on.
One of my friend’s innovation is making a seminar or short course,
which is hosted by his research and development team. They ask the IO-01 PC21
other friend to teach them.
Misconception of However, we often invite the speaker or look for experts who can
G107 OI: Seminar/ teach us. However, if we call the institution to innovate, I guess we IO-03 PC56
Inviting Expertise have not.
The lecturer is called, then giving a workshop about how to improve
one equipment until the patent, and then it is brought to the market IO-09 PC159
which has not existed yet.
Reluctant to learn I think it is quite hard since Indonesian is conventional people who
G108 IO-04 PC78
new things sometimes reluctant to learn new things.
G109 Promoting the OI it is hard for us to share that it is a need. IO-05 PC98
However, for the small-sized company, I do not think that they have
Lack of vision and
G110 vision and mission. I think it is more about management, whether IO-05 PC99
mission
the management wants to give benefit to the company or not.
Cost suddenly There was insulator in this full system so that it can heat the building
turns expensive underneath. We did it together, but only one house because the IO-07 PC121
G111
due to unprepared costs suddenly turn expensive, so we cannot produce.
condition However, we only did it once because the cost is very expensive. IO-08 PC134
Doing research takes much time. IO-02 PC35
It needs time, needs a discussion. IO-06 PC113
G112 Time Constraint
It is still hard to do, and again, we do not have R&D division, which
IO-09 PC156
then takes much time for doing it while we still got many projects.
Coordination between companies is hard. Coordination, different
Coordination and
interest. If we are talking about open innovation, both companies
G113 Matching interest IO-06 PC114
need to have the same interest. That is the hard part in coordinating
are hard
between two parties right.
Worker inhibit
because they are Many are inhibiting it from the worker because they are afraid that
G114 IO-08 PC135
afraid of losing they will lose the job.
their job
Firstly, people who are starting company has the main purpose of
Only focusing on
G115 doing business right either it is construction company or not. IO-08 PC136
profit and cost
Everyone wants profit.
G. Open Innovation – Barriers (Continue)
Code from
Open Innovation -
Code Coded Sentences/ Phrases Source Preliminary
Barriers
Concept
We have to be very settled and very prepared. IO-12 PC198
G116 Be a settled company Maybe we will do once our R&D has settled, but I think
for the beginning, we will do just internal innovation by IO-13 PC217
pushing our R&D until it gets more experience.

H. Open Innovation – Others

Code from
Code Closed Innovation Phrases Source Preliminary
Concept
Trust from R&D by the
G117 It is impossible too if the R&D is just trusted to the staff. IO-01 PC22
other worker
However, if we are discussing things with people which
has a construction company but approximately has the
same age as me, we will make some conversation about IO-01 PC23
Small Conversation ‘what is your innovation?’, ‘what work are you doing
G118
about innovation right now?’, or other jobs conversations.
However, if I meet my friend, we are sometimes
discussing innovation such as ‘have you used this method IO-02 PC36
before?’
I do not have R&D division, which I think is crucial to
meet the succeed in open innovation. […] I need to have IO-02 PC37
divisions, I need to have the R&D.
G119 R&D is needed R&D is needed. IO-09 PC160
Unless it is a large contractor like public contractors who
are very large and have their research and development IO-12 PC199
team, it might be different.
(We should keep innovating and learning from every
Learning from the past project, its deficiency and its advantages, what I can get,
G120 IO-02 PC38
experience and in the next project, I have to be better. Every project
has to be evaluated for the next project too.
Discussing the profit
Before collaborating, we have to discuss how to share the
G121 share and make a IO-04 PC79
profit. We have to make a contract for it.
contract
Firstly, what a PM must understand is knowledge
Understand knowledge
G122 management. How that person can bring the IO-05 PC100
management
phenomenon or issue to innovation.
if there is stakeholder involved, we can open our mind
IO-03 PC57
and see from the other point of view too.
Should be supported by
G123 stakeholder and It has to be supported by the stakeholder too, not only
contractor the contractor. The knowledge sharing or knowledge
IO-05 PC101
management is not only happening in the contractor, but
it also happens in the stakeholder too.
Coordination between companies is hard. Coordination,
Matching the goal and different interest. If we are talking about open
G124 coordination with the innovation, both companies need to have the same IO-06 PC115
other company interest. That is the hard part in coordinating between
two parties right. It needs time, needs a discussion.
The most important is that I have to be able to prioritise
those three aspects. I think from the side of an engineer,
Be able to prioritise
not from the point of view of a businessman, which the
G125 iron triangle: Quality, IO-08 PC137
most important of those three aspects of R&D is
cost and time
supposedly quality. That is the most important. It is, then,
followed by time and cost.
H. Open Innovation – Others (Continue)

Code from
Code Closed Innovation Phrases Source Preliminary
Concept
Making sure
I have to ensure that all of the members of R&D
everyone in the
division are believing that we are going to innovate,
G126 division belief that IO-08 PC138
and we are going to be succeeded, including the
they are going to
justification of why we are doing that.
innovate
Socialised to people
in the company prior It has to be socialised to all people in the company to
G127 IO-08 PC139
applying it to avoid avoid confusion.
confusion
Placed the worker
CEO must understand the condition on the site. There
based on their
G128 are many CEO who placed their people randomly IO-09 PC161
expertise and site
because they do not know the site condition.
condition
Be ready for culture I think more or less; open innovation will change the
G129 IO-10 PC172
change due to OI culture of the company, so everyone must be ready.
PM is the one who communicates directly to the
worker and the client. Therefore, I think the capability
Innovation should be
of PM is; first, I have to make sure that the innovation
G130 acceptable to the IO-10 PC173
that we have discussed is acceptable to our
client
consumer, where this innovation has to give benefit
for the consumer and us.
I think I might recommend them if they have an idea
to make an innovation which makes them have to
Do not look too much
collaborate to pursue the objective of that innovation.
to the risk. Instead,
Do not look too much to the risk; just look at the
G131 look at the result, IO-11 PC183
result. If it is failed, OK, this is the risk, but if it is a
impact to the
success, the impact of its success must be seen as
company
well. Sometimes, we are too afraid to do something
new because we are just too afraid of trying.
Before, we have to learn how to do it, how to make a
Learning how to do
G132 patent for that and so on since the innovation is IO-13 PC218
the OI
owned by a multi-company.