https://doi.org/10.24928/2021/0154

Developing a Framework for Systemic Transformation of the Construction Industry

Antti Peltokorpi¹, Olli Seppänen², Joonas Lehtovaara³, Ergo Pikas⁴ & Otto Alhava⁵

¹Assistant Professor, Department of Civil Engineering, Aalto University, Finland, [email protected], orcid.org/0000-0002-7939-6612
²Associate Professor, Department of Civil Engineering, Aalto University, Finland, [email protected], orcid.org/0000-0002-2008-5924
³Doctoral Candidate, Department of Civil Engineering, Aalto University, Finland, [email protected], orcid.org/0000-0002-4761-3811
⁴Assistant Professor, Department of Civil Engineering and Architecture, Tallinn University of Technology, Estonia, [email protected], orcid.org/0000-0001-5691-685X
⁵CTO, Fira Group Oy, Vantaa, Finland, [email protected], orcid.org/0000-0001-5691-685X

Abstract

In the era of customer-driven and digitalized businesses, the construction industry has still demonstrated inadequate performance development. This research aims to disentangle the industry’s current problems and present justified paths toward sustainable improvement. Following the design science research approach, the paper develops a conceptual framework about the path toward the systemic transformation of the construction industry. We first argue how current efforts to improve construction system are often limited to changes in sub-systems, namely in a) products, b) processes, c) organizing and people, d) information systems, or e) value creation models, therefore lacking a systemic approach needed for significant and sustainable improvements. We then propose a framework that underlines the need to simultaneously develop all the identified five sub-systems to achieve successful transformation. Three cases are presented as partial solutions to such systemic innovations. The paper provides new insights into how a systemic approach could be utilized when transforming the construction industry. More specifically, takt production is identified as one key driver for systemic change. The theoretical contribution lies in the identified five sub-systems and their parallel development as a source for sustainable transformation. However, the paper is conceptual and limited to three partial cases. More empirical research is needed to validate the framework and to specify the most effective transformation paths.

Keywords

Systemic innovation, transformation, construction industry, design science approach.

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Reference

Peltokorpi, A. , Seppänen, O. , Lehtovaara, J. , Pikas, E. & Alhava, O. 2021. Developing a Framework for Systemic Transformation of the Construction Industry, Proc. 29th Annual Conference of the International Group for Lean Construction (IGLC) , 454-463. doi.org/10.24928/2021/0154

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