Abstract:
Organizational innovation is a critical concept as construction companiesincreasingly being challenged
in adapting to successful innovation. Its primary purpose is to meet client needs and increase business
competitiveness. Ultimately, it leads to improved performance and conveys the impression that the company is
not merely surviving but thriving. The construction industry in Sri Lanka is experiencing high rate of inflation
and market fluctuations due to its project-based nature activities, requiring collaboration among multiple parties.
A controversial phenomenon is that each management entity focuses on minimizing project cost components to
maximize and achieve high profits while maintaining traditional practices and paying less attention to the
innovation aspect. Ultimately, it causes an innovation gap between desired level & current level of the entity.
Hence, this study further discusses the strategic concept of innovative behavior and its practical assimilation in
the construction industry field with a special reference to C2 Construction Companies. The study adopts a
qualitative research approach, utilizing semi-structured interviews. Content analysis was conducted to analyze the
interviews, while pattern matching techniques were applied for analysis cross case analysis. The findings highlight
the current situation of innovation practice mechanism and results emphasize the significance of digital
transformation, strategic talent development, a culture of psychological safety, and leadership support in fostering
innovative behavior. Finally, the study findings provide practical suggestions for HRM professionals,
emphasizing the necessity of cultivating a progressive, innovative driven workforce in the Sri Lankan construction
industry field