PurposePrefabricated construction is an innovative technique for decreasing carbon emissions in the construction industry. However, as the investors of housing projects, a majority of developers are unwilling to adopt prefabricated housing in practice. To promote prefabricated housing, this study aims to develop an integrated framework of fuzzy-decision making trial and evaluation laboratory (fuzzy-DEMATEL) and system dynamics (SD) to understand the underlying influencing mechanism of developers' willingness.Design/methodology/approachThrough literature review, a total of 17 influencing factors were identified. Then, the interrelationships among the factors were evaluated by 10 experienced professionals, and the impacts given and received by each factor were further analyzed through fuzzy-DEMATEL. Based on the technology acceptance model (TAM), a SD model was developed to explore the influencing mechanism.FindingsThe major cause factors were identified, including mandatory implementation policies, economic incentive policies, environmental protection policies, component standardization and developers' economic strength. This group of factors was expected to be given priority attention in the case of limited resources. On the other hand, the results indicated that economic incentive policies and mandatory implementation policies could affect the developers' willingness via perceived usefulness, while the others mainly influenced perceived ease of use.Originality/valueLittle research has focused on the interrelationships among the influencing factors of developers' willingness to adopt prefabricated housing. This study contributed to understanding the mechanism of developers' willingness from a systematic view and providing the priority of influencing factors. Several strategies were proposed to improve the practical implementation of prefabricated housing development.