Berg, J B; Thuesen, C; Ernstsen, S K and Jensen, P A (2021) Reconfiguring the construction value chain: Analysing key sources of friction in the business model archetypes of AEC companies in strategic partnerships. Construction Management and Economics, 39(6), pp. 533-548. ISSN 01446193
Abstract
Lack of innovation and productivity in the construction industry compared to other industries is often explained by the institutionalised roles and fragmented nature of the construction value chain. Closer connections and collaboration (such as strategic partnerships) among architecture, engineering and construction (AEC) companies and across the values chain is often prescribed as a strategy to improve the performance of the construction industry. However, the institutional roles of AEC companies and their archetypical business models serve as important reference points for the sector. How these business models interact, and the friction created when they come in close contact is not well researched and understood. This paper identifies business models archetypes for architect, engineer, contractor and materials supplier based on workshops and interviews with practitioners. Friction is identified in and between the business models of AEC companies engaging in strategic partnerships. The analysis shows that architect archetypes face friction with regard to their profit formula and could benefit from profit sharing. The engineering archetypes face friction in their processes since they have to coordinate with specialists from other companies. Contractor and supplier archetypes face friction in their profit formula since the open books force them to alter business practices.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | AEC; archetypes; architecture; business model; engineering and construction sector; friction; value chain |
| Index terms: | practitioner, collaboration, construction sector, interview, profit, face, strategy, archetype, business model, architect, construction industry, workshop, value chain, partnership, productivity, engineer |
| Subjects: | economic analysis, psychology, modelling and simulation, practitioner, profession, construction type, data collection methods, business, industry analysis, partnership management, value chain strategy, management |
| Topics: | Supply Chain Management, Organizational Design, Research Practice, Business Strategy, Construction Technology, Stakeholder Management, Roles and Professions |
| 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