The model draws from theories of industrial economics and supply chain literature, and is an attempt to advance the construction supply chain field through the development of an industrial organisational methodology to describe construction supply chains. Empirical studies have examined the industrial organisation of other industries, typically forming descriptions based upon vertical integration and horizontal market concentration. A review of the trends in the supply chain literature indicate there is a need to develop a model to describe the industrial organisation of the construction industry through supply chain structure. The merging of the supply chain concept with the industrial organisation model as a methodology for understanding the structural characteristics is an important contribution to construction economic theory. The paper begins to develop a language for describing the structure and behaviour of supply chains specific to the construction industry and is so doing suggests a neo-industrial organisation approach.
industrial organisation, supply chain management, subcontracting