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Industrialization of construction: Implications on standards, business models and project orientation

Author

Listed:
  • Andersson Niclas

    (Faculty of Technology and Society, Malmö University, Nordenskiöldsgatan 1, S-211 19 Malmö, Sweden)

  • Lessing Jerker

    (Department of Civil & Environmental Engineering, Stanford University, Stanford, CA 94305, USA)

Abstract

Digitalization has the potential to radically change the way buildings are designed, produced, and operated. In this digital transformation, the establishment of information standards play an important role. However, despite substantial efforts in the development of both technology and standards, these are not yet fully adopted in construction. This study aims to review the adoption of standards and to examine whether suppliers of prefabricated concrete elements have transformed their business models. The purpose is to strengthen the understanding of the interplay between the adoption of standards and business model renewal. Driving forces for the adoption of standards are identified and coupled with suppliers’ arguments for business model protection and renewal, explained in terms of a market and a hierarchy approach. The market approach embraces the adoption of open standards for improved competition and information exchange along with the further adoption of industrialized construction. This study identifies that common standards for precast elements are lacking, which leads to waste in terms of structural re-design and liability uncertainties. On the other hand, a market situation with open standards is challenging for suppliers to utilize and benefit from their existing operational platforms. Suppliers of precast elements strive for a hierarchy approach, that is, the adoption of the whole value chain, to protect their market position and continue offering structural frameworks and services. This concurs with arguments for industrialized construction, which emphasize the benefits of continuous improvements. This study contributes to the understanding of drivers and impediments for the up-take of standards versus business model renewal in construction.

Suggested Citation

  • Andersson Niclas & Lessing Jerker, 2020. "Industrialization of construction: Implications on standards, business models and project orientation," Organization, Technology and Management in Construction, Sciendo, vol. 12(1), pages 2109-2116, January.
    • Handle: RePEc:vrs:otamic:v:12:y:2020:i:1:p:2109-2116:n:7
    DOI: 10.2478/otmcj-2020-0007
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    References listed on IDEAS

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