Developing a framework for systemic transformation of the construction industry

In the era of customer-driven and digitalized businesses, the construction industry has still demonstrated inadequate performance development. This research aims to disentangle the industry’s current problems and present justified paths toward sustainable improvement. Following the design science research approach, the paper develops a conceptual framework about the path toward the systemic transformation of the construction industry. We first argue how current efforts to improve construction system are often limited to changes in sub-systems, namely in a) products, b) processes, c) organizing and people, d) information systems, or e) value creation models, therefore lacking a systemic approach needed for significant and sustainable improvements. We then propose a framework that underlines the need to simultaneously develop all the identified five sub-systems to achieve successful transformation. Three cases are presented as partial solutions to such systemic innovations. The paper provides new insights into how a systemic approach could be utilized when transforming the construction industry. More specifically, takt production is identified as one key driver for systemic change. The theoretical contribution lies in the identified five sub-systems and their parallel development as a source for sustainable transformation. However, the paper is conceptual and limited to three partial cases. More empirical research is needed to validate the framework and to specify the most effective transformation paths.