The construction industry as a loosely coupled system: implications for productivity and innovation

Abstract

Previous research suggests that the construction industry is characterized by (1) particular complexity factors owing to industry specific uncertainties and interdependences, and (2) inefficiency of operations. The aim of this study was to analyse the operations and behaviour of firms as a means of dealing with complexity. The observations made indicate that the industry as a whole is featured as a loosely coupled system. Taking this as a starting point, the couplings among activities, resources and actors were analysed in different dimensions. The pattern of couplings builds on two interdependent layers: tight couplings in individual projects and loose couplings based on collective adaptations in the permanent network. It is concluded that the pattern of couplings seems to favour short term productivity while hampering innovation and learning.Construction, Loosely Coupled System, Productivity, Innovation,

Principles for the design and operation of engineer-to-order supply chains in the construction sector

“…Furthermore, most of these reports have largely highlighted the same persistent weaknesses around structural fragmentation and an apparent inability to innovate. This lack of progress is also noted in a more recent supply chain management handbook for the sector (O'Brian et al 2009) This reflects the view that construction operations are the epitome of a 'loosely coupled' system (Dubois and Gadde 2002a), whereby interactions are optimised around productivity concerns at the expense of innovation and learning opportunities. Given the lack of 'regularity' in the project environment, some authors question the extent to which full supply chain integration through partnering can be achieved in such supply chains (Ireland 2004).…”

“…As previously mentioned, the 'loose coupling' of ETO systems often favour short term productivity while hampering education and learning (Dubois and Gadde 2002a). By getting the couplings right, it may be possible to form a situation whereby the right kinds of knowledge transfer and flows can be brought about to support the enactment of the principles.…”

Are Innovations Being Created or Adopted in the Construction Industry? Exploring Innovation in the Construction Industry

“…Organizational features also have an impact; the project organization is arguably both an innovation hindrance and driver (Slaughter, 2000;Winch, 1998). Also, the lack of long-term relationships (Dubois & Gadde, 2000, 2002 and integration in the supply chain (Akintoye, McIntosh, & Fitzgerald, 2000) are pointed to as inhibiting innovations. The complexity of the construction process itself is yet another complicating factor (Gidado, 1996;Miozzo & Dewick, 2004).…”

A systems approach to strategic infrastructure delivery

“…Historically, delivery practices within the construction industry were concerned with singular transactions between buyers and sellers to suit the needs of specific projects (Arbulu and Tommelein, 2002). This led to the forming of boundary definitions between firms through specialisation (Dubois and Gadde, 2002); in turn 6 leading to the wider fragmentation of the construction industry and its supply chains as a whole (Cox and Goodman, 1956;Blayse and Manley, 2004;Mazet and Portier, 2010). Previously, construction organisations sought to organise through the definition of internal boundaries based on functional specialism; this began to change as construction and engineering firms sought to integrate both internally and externally to economise and streamline processes and access to first tier suppliers.…”