| Summary: | The purpose of this paper assesses the determinant of firms' innovativeness in construction sector, which has been neglected by researchers despite its immense importance to the technological advancement of construction.A total forty four variables are developed and tested in this paper. These variables are established within the context of heavy construction sector characteristics that are consistently suggested to be significant determinants of firms' innovativeness.These characteristics are categorised to four major domains which include (I) market structure characteristics, (2) organization and task characteristic, (3) Adopter Industry
Competitive Environment, and (4) External Cooperation Linkage.The variables were tested utilizing survey data collect from Malaysia Construction Industry Development Board, CIDB Grade 7 construction firms throughout the Malaysia A new model is established using Principal
Component Analysis followed by Multiple Regression Analysis.The new model on innovation suggests reflexing the complexity and the iterative nature of the process where feedbacks and external factors are being considered.This paper closely reflects the essence of the determinants of
firms' innovativeness in heavy construction sector.The nature of innovation adoption in the Malaysia construction industry and the situation of construction technologies are more completely explored with the new model.
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