Eriksson, P E (2025) How clients choose procurement strategies and organizational control systems in the Swedish housing sector. Journal of Financial Management of Property and Construction, 30(1), pp. 22-41. ISSN 1366-4387
Abstract
Purpose: This paper aims to examine how different contextual contingency factors and organizational goals influence construction clients' decision-making when procuring contractors in the housing sector. More specifically, it investigates how clients' choice of procurement strategies and organizational control systems is contingent upon various contextual factors and organizational goals. Design/methodology/approach: It is based on an explorative interview study of clients and contractors in the Swedish housing sector underpinned by a review of organizational control literature. Findings: The client's knowledge and resources, as well as project complexity and uncertainty, are the most important contextual contingency factors, while property management and sustainable development are the most important organizational goals that housing clients consider when designing procurement strategies. Research limitations/implications: The paper contributes to the understanding of how construction clients choose procurement strategies, by providing new insights into effects of the mentioned contextual contingency factors and organizational goals on clients' choice of control systems through their procurement strategies. Practical implications: Property owners who continuously procure housing projects with sustainability requirements and high degrees of complexity and uncertainty should develop knowledge and resources related to their client role, to enable the design and implementation of appropriate procurement strategies. Originality/value: Novel aspects of the paper are the demonstration of the value of a holistic approach, considering both contextual contingency factors and organizational goals, when selecting control systems and explicit discussion of how the client's knowledge and resources influence possibilities to implement different control systems.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | client; construction procurement; housing sector; organizational control |
| Index terms: | control system, property owner, decision-making, methodology, complexity, housing, project complexity, interview, housing project, organizational control, sustainable development, construction procurement, holistic approach, implementation, property management, procurement strategy, construction client |
| Subjects: | housing and residential development, health safety and environment, organizational theory, research methods, contractual arrangements, practitioner, construction type, systems engineering, sociology, decision analysis, monitoring and control, real estate economics, data collection methods, business |
| Topics: | Organizational Design, Urban Studies, Roles and Professions, Stakeholder Management, Construction Technology, Business Strategy, Research Practice, Risk Management, Procurement, Health and Safety, Engineering Principles, Project Management |
| Descriptive scope: | 4 PCTE |
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