Purpose: This study aims to investigate the strategies that successful companies in the construction industry use to achieve systemic transformation within their value chains and broader ecosystems. This study focuses on understanding how these companies navigate the challenges of a mature and slow-changing industry through innovative approaches. Design/methodology/approach: A multiple case study design is used to analyze the systemic innovation dynamics across construction subsystems, through the lens of Complex Adaptive Systems theory. This research involves an empirical examination of nine case companies, selected based on their innovations in at least two construction subsystem areas and markers of success such as growth, profitability or invested capital. This methodology facilitates a detailed understanding of the company-level transformation. Findings: This study identifies four distinct development paths toward systemic transformation within the construction industry: product-driven, product platform-driven, process integration-driven and business model-driven. These paths are characterized by unique strategies integrating technology, optimizing processes and innovating business models, demonstrating how companies can effectively adapt to and evolve within the construction ecosystem. Originality/value: This research contributes original insights into company strategies and how they achieve systemic transformation. This study expands existing knowledge on systemic transformation in the construction industry by integrating empirical evidence with theoretical frameworks, offering a novel perspective on how successful companies innovate within a traditionally slow-changing sector.
1 August 2020 in The Journal of Technology Transfer
The demand for affordable, high-quality homes and premises has increased as society has evolved. Construction companies have shown that an industrialised housebuilding (IHB) platform strategy is an effective way of meeting exacting customer requirements. We decided to apply a managerial perspective and consider the IHB platform as a technological solution when investigating technology transfer (TT) in a construction context. Drawing on a meta-analysis of the literature and a qualitative case study at an IHB company, this work examines how two construction companies participate in TT. The results show that the IHB platform strategy can help a company overcome uncertainties associated with the TT process. Furthermore, the platform strategy supports the transferability of IHB to different markets, which, in turn, provides unique opportunities for companies from other contexts to enter the construction market. Our findings also revealed that CEOs from three construction companies were not only interested in TT due to potential profit improvements, but also considered how the process could benefit their employees and the community. This may be a result that is specific to Nordic culture or insight into a unique characteristic of the broad construction industry. This study contributes knowledge to the scarce research field of TT in a construction context. It provides evidence for how further cases of TT may disrupt the construction industry in terms of new business models or companies from the diverse field entering the market.
Purpose: To further the understanding of industrialised house building (IHB) from a temporal, emergent corporate-ability perspective, this study aims to trace the build-up of corporate assets in an IHB company over time. The research draws on dynamic capabilities, acknowledging not only what assets the company have developed and currently are exploiting, but also how these assets were develop and managed (i.e. enhanced, combined, protected and potentially reconfigured) to sustain long-term competitiveness.Design/methodology/approach: A case study design was used to form a narrative that covers the evolution of an IHB company over a 25-year period. Corporate archival material, analysis of original data from a large number of research studies during 1993-2013 and retrospective reflections of owners and managers, including crosschecking interpretations of archival material, developed and triangulated the narrative.Findings: The study presents rich empirical findings on the build-up of corporate assets. Starting from a successive process of exploration and exploitation formation of dynamic capabilities eventually played out into an exponential dynamic capability build-up. The IHB case company displays the ability to not only continuously exploit and renew resources and competences, but also to sense, seize and reconfigure cumulative assets over time. The exponential development of dynamic capabilities resonates to literature on higher-order dynamic capabilities implying that: the accumulated and higher-order dynamic capabilities are difficult to imitate and a (any) company must possess higher-order dynamic capabilities to be able to exploit and/or take up IHB.Originality/value: The study is complementing and potentially challenging frequent framings of the IHB concept. Previous research has addressed and characterised IHB mainly by encapsulating a moment in time and, thus, characteristics are momentary and represent static views on IHB. However, IHB has seen a strong development over the past 25 years, and the study reflects on this development from the perspective of one of the IHB-forerunner companies in Sweden. By exploring from a company perspective the developments, reconfiguration and capacity to develop/reconfigure over time in a changing environment, the study introduces an alternative understanding of IHB as dynamic capabilities.
Although it is well-established that industrialised construction can improve construction companies’ productivity, the uptake of industrialised ways of working has been slow and traditional construction companies remain unwilling to move towards industrialisation. One key reason is that there is little understanding of how construction companies can overcome path dependency (PD). Drawing on a longitudinal case study looking at an industrialised house-building (IHB) company, this work investigates how entrepreneurial orientation (EO) has influenced the development of a construction company that was able to transform from a traditional construction company to an IHB company over 25 years and to overcome PD in the process. The study found that by focusing on a niche market segment, developing a platform in collaboration with external actors, and an entrepreneurial mindset supported the company in overcoming its PD. However, being the “first-mover” in the industry created new path dependencies that may hinder other companies from entering this specific niche market area and the development of the industry as a whole. This study contributes to the theoretical buildup of EO, PD and strategic orientations of IHB companies, and contributes to practitioners’ understanding of IHB companies from a strategic management contingency perspective.
It is generally acknowledged that good-quality design is a prerequisite for good quality and productive construction work. One proposed measure to improve the quality of construction has been contractors’ involvement in the design phase, and this phenomenon has been studied by several researchers. However, such approaches have not adequately addressed how this involvement affects the quality of the design. In this study, the aim was to study the effects of the early involvement of contactors on design quality based on evaluating the design quality factors. A case study was used to collect data and content analysis to analyze structural drawings and design meeting minutes of a large-scale infrastructure project. Particularly, the focus was on gathering information on the quality of the design and how it was addressed in the design coordination. We combined this quantitative data with qualitative open-ended thematic interviews, including respondents who led and coordinated the design on both the client and contractor sides. Our findings suggest that despite the vast amount of design changes, contractors’ involvement and development work in the detailed design phase improved design quality and constructability. Our findings also suggest that the contractor’s involvement during the schematic design phase had a design-enhancing effect in the detailed design phase. This study contributes to our understanding of contractors’ valuable role in design quality.
Currently, digital situational awareness systems are popular in complex infrastructure construction projects. These systems monitor and assess environmental events, progress, resource availability, risks, and other project decision-making variables to support decision-making. However, little is known about how infrastructure construction (IC) professionals who utilize situational awareness systems perceive how they support or hinder situational management. The purpose of this exploratory research is to study, in depth, the relevance, challenges, and adoption of situational management in IC projects using digital systems. The data were collected via semistructured interviews with 21 IC managers and situational awareness management experts from 11 companies involved in railway projects. The main findings indicate that problem-solving improved with situational management in general, especially with digital situational awareness systems. Seizing the possibilities for transparency that accompany digital situational awareness systems helped in discussing emerging problems and making project choices. Expectations about the realism of such expectations were easier to align with historical event data. On the other hand, the informants reported difficulty in motivating contractors to collect situational data in digital form, possibly because of a lack of understanding about the purpose of data collection, the manual nature of data collection, the perceived excessiveness of data collection, or the manual transfer of collected data into digital form. For these reasons, the informants reported limited faith in these systems. A perceived drawback of situational management, whether supported by digital situational awareness systems or not, was its lack of applicability to the realities of a construction site. Systems were designed for project management needs but not tailored to the needs of construction projects. The interviewees’ statements indicate that maintaining situational awareness requires active interaction and constant checking of the provided information, even requiring pressure on the contractors providing the information. This study highlights the need for practical human approaches to effectively use digital situational awareness technologies and situational management in IC.