Managing the high capital cost of prefabricated construction through stakeholder collaboration: A two-mode network analysis

Zhang, Y; Liu, Y; Yu, R; Zuo, J and Dong, N (2025) Managing the high capital cost of prefabricated construction through stakeholder collaboration: A two-mode network analysis. Engineering, Construction and Architectural Management, 32(1), pp. 556-577. ISSN 0969-9988

Abstract

Purpose: Prefabricated construction (PC) can benefit construction industry due to its high efficiency, energy saving, consumption reduction and safety. However, the high capital cost is a critical challenge hindering its development in China. The collaboration of PC stakeholders is conducive to improving cost management efficiency and optimizing resource allocation which has been ignored in previous studies. Therefore, this study aims to explore the collaboration paths of stakeholders in the process of solving critical cost influencing factors (CIFs) of PC to reduce costs. Design/methodology/approach: Firstly, 25 CIFs and five main stakeholders that affect PC capital cost were identified through literature research and expert interviews. Then, questionnaires were used to investigate the relationship between stakeholders and CIFs from the perspectives of three stakeholder attributes of proximity, attitude and power, respectively. Finally, based on the survey data, three stakeholder-CIF networks from three attributes perspective and a comprehensive network were constructed and used for subsequent social network analysis. Findings: (1) Stakeholders mainly show willingness and potential to collaborate on organization and management factors; (2) More stakeholders pay attention to incentive policies and the setting of prefabrication rates and assembly rates, while all stakeholders have the right to facilitate information and resource sharing in the PC supply chain; (3) The comprehensive network shows a core-periphery structure. As core stakeholders, contractor, designer and manufacturer are more likely to actively manage the 14 core CIFs. Originality/value: This paper innovatively combined stakeholder and cost management in PC, and used two-mode network based on three stakeholder perspectives to reveal the collaboration potential and motivation of stakeholders in PC cost management. The findings not only provide guidance for stakeholders to find potential partners and optimize resource allocation in solving specific cost issues, but also facilitate stakeholders' sustainable collaboration to achieve PC's cost performance.

Item Type: Article
Uncontrolled Keywords: collaboration; cost influencing factors; prefabricated construction; stakeholder attributes; two-mode network; questionnaire survey
Index terms: prefabrication, construction industry, energy-saving, cost management, designer, influencing factor, network analysis, resource allocation, efficiency, consumption, China, cost performance, collaboration, methodology, questionnaire, social network analysis, motivation, survey, interview, manufacturer, capital cost
Subjects: research methods, accounting and finance, Geography, building construction, consumer economics, practitioner, psychology, management, economics, performance management, industry analysis, data collection methods, risk assessment, profession, energy systems, data analysis and analytics, resource management
Topics: Quality Management, Geographical Context, Risk Management, Sustainability, Human Resources, Organizational Design, Site Management, Cost Management, Business Strategy, Research Practice, Roles and Professions, Stakeholder Management, Construction Technology
Descriptive scope: 5 PCTEA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here