The impacts of industrialization on construction subcontractors: a resource based view

Abstract

Industrialization of the construction process is increasing around the world due to its potential to improve safety, sustainability, effectiveness, productivity and efficiency. While there has been research into the impacts of various forms of industrialized construction on the construction sector, surprisingly there has been little research into the impacts on subcontractors. The lack of subcontractor’s voice in the industrialization debate is important to address since they operate at the coalface of the industry where the impacts of such changes will have a significant impact. The resource based view of the firm (RBV) is used as a theoretical lens to study these potential impacts through interviews with senior executives and managers of six major subcontracting firms which have worked with off-site bathroom pod technologies in Australia. It is found that the key subcontractor resources affected by this off-site technology are human, financial, intellectual and social and that subcontractors will need to pursue strategies which develop new skills, knowledge, networks and deeper supply chain collaborations if they are to turn the potential risks associated with off-site into potential opportunities to achieve competitive advantage.