Industrialised House-Building - Conceptual orientation and strategic perspectives

Abstract: Industrialised house-building has received increasing attention within both the construction industry and the scientific community during the last 15 years. However, industrialisation of house-building is not a new phenomenon, it has been applied to various extents throughout modern history, although the understanding and descriptions of it have developed over time. Scientifically, industrialised house-building has mainly been investigated through partial studies, and a holistic description of the field has been lacking. The purpose of this research is to holistically describe the characteristics of industrialised house-building and explore associated strategic perspectives and business models, in order to improve understanding of the phenomenon. The research is based on qualitative case study methodology together with literature studies. The findings were used for theory refinement and jointly contributed to the composition of a conceptual framework and elaboration of strategic orientations and business model analyses for industrialised house-building. Industrialised house-building is found to be characterized by a set of 12 inter-related constructs that require systematic integration, in order to establish production systems, structured for continuous production of buildings, aimed at certain market segments and product ranges. Industrialised house-building companies generally derive from either a market-based Outside-In perspective or a resource-based Inside-Out perspective. These perspectives reflect the companies’ starting points and are indicative of three main strategic orientations when combined with their product pre-definition levels and potential market cover (which ranges from niche to broad). A characteristic feature of industrialised house-building companies’ business models is the establishment of a tight fit between market segment requirements and offerings, based on product platforms enabling customization within defined limits. The structure and utilization of operational platforms is characterised by high control of both product configuration and production processes.