Uusitalo, P; Peltokorpi, A; Seppänen, O and Alhava, O (2024) Towards systemic transformation in the construction industry: A complex adaptive systems perspective. Construction Innovation, 24(7), pp. 341-368. ISSN 1471-4175
Abstract
Purpose: This study aims to investigate the strategies that successful companies in the construction industry use to achieve systemic transformation within their value chains and broader ecosystems. This study focuses on understanding how these companies navigate the challenges of a mature and slow-changing industry through innovative approaches. Design/methodology/approach: A multiple case study design is used to analyze the systemic innovation dynamics across construction subsystems, through the lens of Complex Adaptive Systems theory. This research involves an empirical examination of nine case companies, selected based on their innovations in at least two construction subsystem areas and markers of success such as growth, profitability or invested capital. This methodology facilitates a detailed understanding of the company-level transformation. Findings: This study identifies four distinct development paths toward systemic transformation within the construction industry: product-driven, product platform-driven, process integration-driven and business model-driven. These paths are characterized by unique strategies integrating technology, optimizing processes and innovating business models, demonstrating how companies can effectively adapt to and evolve within the construction ecosystem. Originality/value: This research contributes original insights into company strategies and how they achieve systemic transformation. This study expands existing knowledge on systemic transformation in the construction industry by integrating empirical evidence with theoretical frameworks, offering a novel perspective on how successful companies innovate within a traditionally slow-changing sector.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | architecture engineering construction industry; business model; construction; strategy; systemic transformation |
| Index terms: | methodology, integration, evidence, product platform, strategy, complex adaptive system, dynamics, business model, marker, profitability, construction industry, systemic innovation, value chain, case study, transformation |
| Subjects: | industry analysis, systems engineering, organizational analysis, probability and distributions, value chain strategy, management, research methods, innovation and technology management, economic analysis, evaluation and assessment methods, data collection methods, business |
| Topics: | Business Strategy, Research Practice, Engineering Principles, Supply Chain Management, Organizational Design |
| 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