Integrating contractor and property developer for product system innovations
Artikel i vetenskaplig tidskrift, 2017

Purpose: The aim of this paper is to explain why construction groups facing opportunities for product system innovations, such as green buildings, may choose to integrate construction and property development, taking on facilities management (FM) for a limited period. Design/methodology/approach: Conceptual analysis based on prior literature and illustrated by a single case of integration. Findings: For product system innovations, an in-house developer should be more able to reduce uncertainty than independent developers, due to unobservable long-term technological quality for customers, because the property becomes associated with lower risk after having been owned and operated. Alternatives such as building certification systems support incremental innovations, warranties suffer from double moral hazard in the long run and risk allocation in public–private partnership projects often fails to encourage system innovations. Integration allows the contractor to work continuously with innovative projects, developing new capabilities, which allow the firm to signal proficiency to the market, employees and the investment community. Research limitations/implications: The phenomenon is new, and further empirical surveys are needed to confirm the hypothetical conclusions drawn here. Practical implications: The value of close collaboration between those who develop innovative green building technologies and facilities managers is outlined. Originality/value: The relation between the scope of corporate activities in construction groups, technological innovations and FM has not been studied before.

corporate strategy

clients

business development

technological innovation

green issues

facilities management

Författare

Magnus Holmén

Högskolan i Halmstad

Jan Bröchner

Chalmers, Teknikens ekonomi och organisation, Service Management and Logistics

Shahin Mokhlesian

Chalmers, Teknikens ekonomi och organisation, Service Management and Logistics

Facilities

0263-2772 (ISSN)

Vol. 35 9/10 511-524

Styrkeområden

Building Futures

Ämneskategorier

Samhällsbyggnadsteknik

Företagsekonomi

Husbyggnad

Drivkrafter

Innovation och entreprenörskap

DOI

10.1108/F-10-2016-0094

Mer information

Senast uppdaterat

2018-09-06