Transitioning to Offsite Construction: Capability-Resilience-Alignment or Abject Failure?

Abstract

Architecture, Engineering, and Construction (AEC) is increasingly turning to offsite construction (OSC) as a strategic response to address performance and productivity challenges. This has (in the main) been very successful, especially where transition and migration plans have been established beforehand. However, more recently, there have been a number of high-profile business failures [ergo new entrants to OSC] which has raised significant concerns on the ‘true level of understanding and awareness’ of OSC – especially on “demands and needs”. This is seen as a major challenge and a critical gap in organisational resilience. In order to start to address this, this paper highlights the need to secure a much deeper and richer understanding of OSC transitional arrangements – particularly those which support resilience capabilities. Organisational resilience is proffered as a dynamic, multi-layered construct of Business Systems, where capability-based constructs directly/indirectly affect operationalisation. In this respect, studies have shown that organisational awareness (especially across stratified management levels) can often have an impact on transitional arrangements to such sectors as OSC. 

In order to understand these issues and impact on AEC organisations, this research followed an interpretivist approach using multiple case study actors. Three case study organisations (with international experience in OSC) were selected from Türkiye. From these organisations, 24 semi-structured interviews were conducted across three different management levels (to assess differences in thinking). Qualitative insights from these interviews were examined using the Relative Existence Index (REI) and the Relative Perception Gap Index (RPGI). This approach enabled cross-level examination across these three companies and respective organisational layers.

Findings revealed uneven perceptions across these companies, and through organisational management strata. This reinforced the notion of ‘misalignment’; which inter alia, acted as a conditioning constraint and barrier, thereby limiting capability mobilisation and subsequent transformation. These findings align to traits evidenced in Dynamic Capabilities (DC) theory. Thus, in order to move this challenge forward, this paper presents a multi-layered conceptual framework for discussion. This conceptualises resilience operationalisation as a six-layered solution, highlighting cross-level alignment as a critical element which can influence successful organisational transformation.