Facilitating platform-based business model innovation in construction start-ups: A dynamic capability perspective

In the Industry 4.0 era, emerging technologies and processes present both challenges and opportunities for architecture, engineering, and construction (AEC) companies. Construction start-ups are increasingly adopting platform-based business models to redefine value creation and enhance collaboration across the value chain. However, limited research explores how to systematically transition to platform-based business models in this context. This study addresses this gap by investigating how construction start-ups develop platform-based business models through the lens of dynamic capabilities. Employing an explanatory multiple case study approach, the paper identifies three distinct platform-based business models: product platform, transaction platform, and product-as-a-service platform. We analyze how each platform creates and captures value through scalability, connectivity, and generativity. The findings highlight four dynamic capabilities underpinning platformization—resonance capability, ideation capability, integration capability, and reconfiguration capability. Additionally, this research emphasizes the reinforcing relationship between product platforms and dynamic capabilities, illustrating how platformization enhances construction start-ups' capacity to respond swiftly to rapidly evolving market conditions and customer demands. Practically, this paper articulates critical decision-making points and trade-offs associated with the four dynamic capabilities, offering actionable guidance for construction start-ups pursuing a platform-based business model.