Towards adopting off-site construction in housing sectors as a potential source of competitive advantage for builders

Sutrisna, M; Ramnauth, V and Zaman, A (2022) Towards adopting off-site construction in housing sectors as a potential source of competitive advantage for builders. Architectural Engineering and Design Management, 18(3), pp. 165-183. ISSN 1745-2007

Abstract

One of significant advancement of techniques in the construction industry is off-site construction (OSC) technique that has existed for long but only recently gaining leverage from the advances in manufacturing. OSC carries much potential and even termed as the modern method of construction. OSC has been identified as an effective solution to address speed expectations and quality issues facing the global construction industry. Particular to the housing sectors such as in Western Australia (WA), implementing OSC holds significant potentials but has also been considered risky by local builders, hence its lower uptake in WA. However, risks are often double-edged and rewards may be waiting for builders willing to take on the risks and become the main OSC providers. This paper presents the findings from a research project aiming to explore OSC adoption as a potential source of competitive advantage through the first mover advantage (FMA). The data collection was designed to capture potentials of gaining competitive advantage based on the existing characteristics of the sector. While confirming the potential of OSC adoption as a source of competitiveness, findings also revealed the barriers and enablers in adopting OSC in WA followed by identifying the critical success factors of OSC adoption in WA to gain competitive advantage. Findings from the data analysis were then aggregated to form a holistic framework showing the interconnectedness between differentiation/focus, cost leadership and FMA. This novel framework is considered the main contribution of the research that can be used to support house builders in gaining competitive advantage by implementing OSC.

Item Type: Article
Uncontrolled Keywords: competitive advantage; construction industry; off-site construction; residential housing; western Australia
Index terms: quality issue, competitiveness, global construction, housing, differentiation, construction industry, off-site construction, critical success factor, data analysis, competitive advantage, builder, residential housing, Australia
Subjects: data analysis and analytics, practitioner, control systems, strategic management, construction type, organization, industry analysis, quality assurance, market analysis, building construction, Geography
Topics: Organizational Design, Quality Management, International Construction, Construction Technology, Roles and Professions, Geographical Context, Project Management, Research Practice
Descriptive scope: 4 PCTA

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