Citation: FELLOWS, R. and LIU, A.M.M., 2012. Managing organizational interfaces in engineering construction projects: addressing fragmentation and boundary issues across multiple interfaces. Construction Management and Economics, 30 (8)
Introduction: Background and ContextFragmentation is a 'dirty word' in the construction sectors. It has been employed extensively in reports as a causal explanation of many of the ills of the industry, most of which relate to, alleged, poor performance (Latham, 1994;Egan, 1998; Construction Industry Review Committee, 2001). Fragmentation is defined as "A breaking or separation into fragments' where a fragment is 'a (comparatively) small detached portion of anything; A detached, isolated, or incomplete part; a (comparatively) small portion of anything" (OED, 2010). Such use of 'fragmentation' intentionally carries negative connotations; however, that is not necessarily the reality. By changing the word but maintaining the extant industrial structure, terms such as 'differentiated' or 'specialist' could be employed, each specialism constituting an important fragment; indeed, Adam Smith (Smith, 1789/1970) was an arch proponent of fragmentation in advocating division of labour to enhance productivity, as pursued in 'scientific management' (Taylor, 1911), -a path which construction, and most other sectors (including automotive and aerospace), have adopted with great enthusiasm.Perhaps the nub of the issues lies in the business relationship changes which stem from the industrial revolution -the transition from craft guilds' masters and journeymen trading with relatively few, known others to multitudes of transactions amongst persons largely unknown to each other. A direct result is the increase in the use and importance of contracts to govern relationships and enforcement of the terms of agreements.Structurally-based concerns regarding fragmentation are addressed by Lawrence and Lorsch (1967) in their treatise on differentiation and integration. Given that technologies are increasingly complicated and that effectiveness and efficiency considerations prompt commensurate differentiation / division of labour / specialisation, then the organisational / managerial imperative shifts to integration for the supply of goods and services to ultimate consumers. Hence, acknowledging and respecting the differentiation and the consequent independence of 'component' suppliers lie at the core of integrating those suppliers' contributions and securing their commitment to deliver the final output. Thus, the fragmentation criticism is not one relating to industrial structure primarily, but concerns how integration operates in the market-social context to provide goods and services to customersorganisational and individual behaviour being the core focus; as manifested in both neoclassical (e.g., Friedman, 1970) and new institutional/transaction cost economics (e.g., Coase, 1937;Williamson, 1985).Specialisation has caused differentiation and led to increasingly complex project organisational structures ...
