Innovativeness and its influence on growth and market extension in construction firms in the Andalusian region

Innovation is playing an increasingly prominent role in competitive advantage. To explore innovation in the construction industry, we have studied a sample of 113 Andalusian firms in this sector, tackling two key issues. Firstly, we address how firms innovate. A multiple linear regression model allows us to observe that internal factors contribute to product innovation, whereas external knowledge sources are predominant in process innovation. Secondly, statistical hypothesis testing validates the positive impact of product innovation on internationalization, and of process innovation on firm growth. Hence, innovation helps to boost competitiveness in construction firms, making it beneficial during periods of crisis.