Paper info: Intermediation in the Construction Industry
Title
Intermediation in the Construction Industry
Authors
Kajsa Hulthén
Chalmers University of Technology
Sweden
Lars-Erik Gadde
Chalmers University of Technology
Sweden
Viktoria Sundquist
Chalmers University of Technology
Sweden
Place of Publication
The paper was published at the 27th IMP-conference in Glasgow, Scotland in 2011.
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Abstract
Abstract
This paper deals with features of alternative forms of intermediation, illustrated by a case from the construction industry. Three intermediation principles are identified. Firstly, market exchange with conditions of exchange of standardized products, short-term focus and independent businesses. Secondly, cooperation with suppliers, thus moving from arm‟s length relationships to closer collaborations. The third form, industrialization captures opportunities to reduce massive adjustments at the construction site and move these activities into a more industrialised environment. The analysis shows that the forms of intermediation applied have significant consequences for the performance of industrial operations. Each type of intermediation provides its particular impact, depending on the way activities, resources and actors are connected. However, none of the intermediation approaches is superior to the other. What is perceived as the „best‟ alternative depends on the particular situation of the company. This analysis must take the whole network into consideration and identify how other actors, resources and activities are impacted in the three situations. Furthermore, most companies are likely to use a combination of the three intermediation principles.
Keywords: intermediation, construction, market exchange, cooperation, industrialization
This paper deals with features of alternative forms of intermediation, illustrated by a case from the construction industry. Three intermediation principles are identified. Firstly, market exchange with conditions of exchange of standardized products, short-term focus and independent businesses. Secondly, cooperation with suppliers, thus moving from arm‟s length relationships to closer collaborations. The third form, industrialization captures opportunities to reduce massive adjustments at the construction site and move these activities into a more industrialised environment. The analysis shows that the forms of intermediation applied have significant consequences for the performance of industrial operations. Each type of intermediation provides its particular impact, depending on the way activities, resources and actors are connected. However, none of the intermediation approaches is superior to the other. What is perceived as the „best‟ alternative depends on the particular situation of the company. This analysis must take the whole network into consideration and identify how other actors, resources and activities are impacted in the three situations. Furthermore, most companies are likely to use a combination of the three intermediation principles.
Keywords: intermediation, construction, market exchange, cooperation, industrialization