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Towards systemic transformation in the construction industry: a complex adaptive systems perspective

P. Uusitalo,A. Peltokorpi,O. Seppänen,O. Alhava

Published 2024 in Construction Innovation

ABSTRACT

Purpose This study aims to investigate the strategies that successful companies in the construction industry use to achieve systemic transformation within their value chains and broader ecosystems. This study focuses on understanding how these companies navigate the challenges of a mature and slow-changing industry through innovative approaches. Design/methodology/approach A multiple case study design is used to analyze the systemic innovation dynamics across construction subsystems, through the lens of Complex Adaptive Systems theory. This research involves an empirical examination of nine case companies, selected based on their innovations in at least two construction subsystem areas and markers of success such as growth, profitability or invested capital. This methodology facilitates a detailed understanding of the company-level transformation. Findings This study identifies four distinct development paths toward systemic transformation within the construction industry: product-driven, product platform-driven, process integration-driven and business model-driven. These paths are characterized by unique strategies integrating technology, optimizing processes and innovating business models, demonstrating how companies can effectively adapt to and evolve within the construction ecosystem. Originality/value This research contributes original insights into company strategies and how they achieve systemic transformation. This study expands existing knowledge on systemic transformation in the construction industry by integrating empirical evidence with theoretical frameworks, offering a novel perspective on how successful companies innovate within a traditionally slow-changing sector.

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