From techno-optimism to value co-creation: a circular value system analysis on the modular transitional housing programme in Hong Kong

Modular integrated construction (MiC) is the volumetric prefabrication and on-site assembly approach to project delivery. The circular use of MiC modules in large scale projects is driving a change in the value system structure transition. One such case is the modular transitional housing (MTH) programme in Hong Kong. In this study, we conducted a holistic analysis on the actors and value activities in the MTH projects based on a circular value system framework. The analysis mapped out the network of key actors’ value activities. A bottleneck is identified in the conjunction between two sequential projects utilising the first and second lifecycle of the MiC modules. Learning-and-spillover is identified as the key cost driver, which leads to improvement in system capability and infrastructure, preparing systemic conditions for economic transition. We argue that the value of MiC is not created by the technology alone, but co-created with the combination of appropriate building type, geographical contexts, and user-specific social services. We suggest a platform development approach augmenting top-down design and bottom-up emergence, starting from connecting the internal platforms. We conceptualise circular integration as a procurement strategy to mitigate the bottleneck in the MiC circular value chain.