Abstract. Modular coordination (MC) is recognized as a tool towards rationalization and industrialization. The implementation of MC concept in the design stage may improve the constructability and construction time. However, the implementation of MC in Industrialized Building System (IBS) implementation is still low compare to other developed countries such as the United Kingdom, Sweden and Japan. This paper examined the interrelationship between motivational factors of stakeholders in adopting MC concept using Interpretative Structural Modeling (ISM). Questionnaire survey was engaged in this study to identify significant motivational factors. Then, semi-structure interviews were used to collect qualitative data. ISM was adopted to build relationship between factors and develop an initial model to promote the adoption of MC in IBS construction. Seven (7) significant motivational factors were identified in this research namely 1) 'stakeholder's commitment', 2) 'reduce site disruption', 3) 'increase productivity', 4) 'high skilled workers', 5) 'site sustainability (environment, economy and social benefits)' 6) 'standardization' and 7) 'enabling 'open building' concept'. The result using Matrice d'Impacts Croises Multiplication Applique an Clasment (MICMAC) shows that there are three factors can be categorized as Independent / Driving Factors namely 'stakeholder's commitment', 'standardization' and 'enabling "open building" concept'. These factors should be explored in details to enhance the adoption of IBS in Malaysia. The findings provide a very good platform for a further research in formulating an efficient solution to promote MC concept adoption among the stakeholders. This scenario will improve the deliverables of IBS construction and eliminate negative perception in its implementation.