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Exploratory study on the Innovation, Freedom and Flexibility of Subcontractors in the Construction Industry

Vellaisamy Saravanan, Akash Swamy LU and Färdow, Vincent LU (2025) MTTM02 20251
Production Management
Engineering Logistics
Abstract
The construction industry is a very traditional sector. The construction supply chain is very complex and fragmented since every project is site-based and unique. The distinctive nature of the construction industry is its heavy reliance on subcontracting. A common practice in the industry is to organize projects with a tier of subcontractors working for a main contractor. Since it is a knowledge-intensive sector, most innovation occurs through lessons learned and is often tacit in nature. This so-called sticky knowledge possessed by the subcontractors is a significant driver of innovation.

The purpose of this thesis is to investigate how project management attributes like leadership influence innovation among subcontractors. It aims to... (More)
The construction industry is a very traditional sector. The construction supply chain is very complex and fragmented since every project is site-based and unique. The distinctive nature of the construction industry is its heavy reliance on subcontracting. A common practice in the industry is to organize projects with a tier of subcontractors working for a main contractor. Since it is a knowledge-intensive sector, most innovation occurs through lessons learned and is often tacit in nature. This so-called sticky knowledge possessed by the subcontractors is a significant driver of innovation.

The purpose of this thesis is to investigate how project management attributes like leadership influence innovation among subcontractors. It aims to explore how subcontractors’ sticky knowledge can be leveraged to impact project outcomes and how this knowledge is shared within project environments. Additionally, the study examines the dynamics of the contractor–subcontractor relationship affecting subcontractors’ autonomy and ability to innovate.

The study follows an exploratory study approach. A case study is the chosen research methodology. Data is collected through semi-structured interviews with contractors, site managers, and subcontractors of various firms from India and Sweden. Potential gaps in research are identified through pattern matching and a cross-case synthesis.

Project management aspects like leadership and work description have a significant impact on the ability of subcontractors to innovate. Further late involvement of the subcontractors in the project has its drawbacks. Enhancing early collaboration, consistent leadership, and flexible work specifications can help in creating an environment that promotes innovation. (Less)
Popular Abstract
The construction industry is known for being traditional and slow to change. Most building projects rely heavily on subcontractors who are skilled workers like electricians and plumbers. They do a large part of the actual work. These subcontractors often have valuable on-the-ground experience and insights, which is called as sticky knowledge. This knowledge when used effectively can bring about new innovative ideas and changes to complex working processes. This study looks at how leadership and project management affect the ability of subcontractors to share their knowledge and suggest improvements. By talking to contractors and subcontractors in both India and Sweden, the research highlights that subcontractors are usually brought in too... (More)
The construction industry is known for being traditional and slow to change. Most building projects rely heavily on subcontractors who are skilled workers like electricians and plumbers. They do a large part of the actual work. These subcontractors often have valuable on-the-ground experience and insights, which is called as sticky knowledge. This knowledge when used effectively can bring about new innovative ideas and changes to complex working processes. This study looks at how leadership and project management affect the ability of subcontractors to share their knowledge and suggest improvements. By talking to contractors and subcontractors in both India and Sweden, the research highlights that subcontractors are usually brought in too late to influence big decisions. As a result, their practical ideas for better, more efficient building often go unused. The findings show that involving subcontractors earlier, giving them more freedom, and encouraging open communication can lead to more innovation on construction sites. If contractors create a more collaborative environment, the whole industry can benefit from smarter, faster, and more effective ways of working. (Less)
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author
Vellaisamy Saravanan, Akash Swamy LU and Färdow, Vincent LU
supervisor
organization
course
MTTM02 20251
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Innovation, contractors, subcontractors, leadership, construction supply chain management, sticky knowledge.
other publication id
6038
language
English
id
9193264
date added to LUP
2025-06-17 17:07:25
date last changed
2025-06-17 17:07:25
@misc{9193264,
  abstract     = {{The construction industry is a very traditional sector. The construction supply chain is very complex and fragmented since every project is site-based and unique. The distinctive nature of the construction industry is its heavy reliance on subcontracting. A common practice in the industry is to organize projects with a tier of subcontractors working for a main contractor. Since it is a knowledge-intensive sector, most innovation occurs through lessons learned and is often tacit in nature. This so-called sticky knowledge possessed by the subcontractors is a significant driver of innovation.

The purpose of this thesis is to investigate how project management attributes like leadership influence innovation among subcontractors. It aims to explore how subcontractors’ sticky knowledge can be leveraged to impact project outcomes and how this knowledge is shared within project environments. Additionally, the study examines the dynamics of the contractor–subcontractor relationship affecting subcontractors’ autonomy and ability to innovate.

The study follows an exploratory study approach. A case study is the chosen research methodology. Data is collected through semi-structured interviews with contractors, site managers, and subcontractors of various firms from India and Sweden. Potential gaps in research are identified through pattern matching and a cross-case synthesis. 

Project management aspects like leadership and work description have a significant impact on the ability of subcontractors to innovate. Further late involvement of the subcontractors in the project has its drawbacks. Enhancing early collaboration, consistent leadership, and flexible work specifications can help in creating an environment that promotes innovation.}},
  author       = {{Vellaisamy Saravanan, Akash Swamy and Färdow, Vincent}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Exploratory study on the Innovation, Freedom and Flexibility of Subcontractors in the Construction Industry}},
  year         = {{2025}},
}