Elements of integration in a construction value chain

Construction industry value chains have been characterised by fragmentation between projects, phases, and trades within projects. This study examines how vertical integration can support developing industrialisation in the construction value chain. Industrialised construction has been seen as a way to advance the construction industry by reducing project-specific work, for example, by implementing prefabrication to reduce work at the site. This qualitative single case study examined the case value chain through eight semi-structured interviews with representatives from five companies. To analyse the case, systematic text condensation was utilised to examine the interview themes. Developing industrialisation in a vertically integrated value chain changes the roles of technical and commercial ownership, as new products need to be developed to match the production capabilities and the requirements of the markets. This development requires a systematic approach to reach scale benefits in all phases, from sales to maintenance. These changes also impact the structure and culture of the organisation. Vertical integration aids in gathering the needed capabilities together, providing ways to direct the needed investments into industrialisation, such as information systems and prefabrication facilities. It establishes transparency in the value chain and supports data flow throughout the value chain. With this study, we examine how vertical integration can aid industrialisation by guiding investments and providing visibility into the formation of costs.