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.

Abstract (Swedish)

Popular Abstract in English

This thesis is about industrialised house-building, put in a strategic perspective. Industrialised house-building is in the thesis described as a process- and product-oriented concept that can serve as an alternative to traditional project-oriented house-building methods and principles. It is seen as an integrated, multi-disciplinary concept that requires an established production system, continuously used by a company or a network of closely collaborating companies. The development of industrialised house-building is connected to how companies are structured and managed, and therefore this thesis is focused on the strategic perspective on companies’ implementation and development of the concept.

The research is based on case studies, executed with qualitative methods including interviews, company visits, document studies and interaction with staff in the studied organizations. The case studies were done at companies applying industrialised house-building in Sweden and North America, and contributed with valuable knowledge. A theoretical foundation is achieved by thorough literature studies, which complement the case studies with theories, models and tools that are used for describing, explaining and analyzing the studied phenomena.

A conceptual framework is presented to describe industrialised house-building. This includes a set of inter-related constructs required for successful up-take of the concept. It is stated that industrialisation is an issue of strategic importance for companies and hence cannot be managed on a building project level, but needs to be addressed on a strategic level in companies. Business models are found to be tools suitable for describing industrialised house-building companies, including not only operational issues but also issues concerning market position and the companies’ offerings. Two main strategic perspectives, Inside-Out and Outside-In, are used for describing the business models’ starting points. Further, by structuring technical solutions into product platforms, industrialised house-building companies establish a backbone for continuously managing information, methods and processes. The choice of platform build-up, defining the company’s level of product predefinition (product strategy), affects the company’s business model. Moreover, the company’s strategic perspective determines the starting point for business model creation. By introducing a diagramme showing the strategic perspectives together with market cover (product strategy), knowledge about industrialised house-building companies’ business models is brought further. It is concluded that the difference in strategic perspectives and product strategies determines the roles and offerings of the companies. However, as a result of business model evolution, companies from different strategic perspectives tend to approach each other, as a result of business model fine tuning and improving balance and fit between the business model’s components.



The thesis is a covering, synthesizing thesis also including three appended research articles. The aim is that the thesis put the research in a broader context than presented in the individual research articles, and brings the understanding further by processing the material as a whole.

• author: Lessing, Jerker
• supervisor: ANDERS EKHOLM
• opponent: Professor Goulding, Jack Steven, University of Central Lancashire, UK
• organization: Division of Structural Engineering
• publishing date: 2015
• type: Thesis
• publication status: published
• subject: Civil Engineering
• keywords: orientation, platform, product, business model, strategic, Industrialised, house-building
• in: TVBK
• volume: 1050
• pages: 190 pages
• defense location: Stora Hörsalen, Ingvar Kamprad Designcentre, Sölvegatan 26, Lund University, Faculty of Engineering LTH, Lund
• defense date: 2015-11-27 09:15:00
• ISSN: 0349-4969
• language: English
• LU publication?: yes
• id: 7da1889d-bb03-49a4-94c6-1c22461a7a1a (old id 8145659)
• date added to LUP: 2016-04-01 14:15:27
• date last changed: 2019-05-23 17:29:43