Growing Modern Methods of Construction into an Industry

Abstract

Affordable housing is a key element of the European welfare state. Modern methods of construction (MMC) have re-emerged as a contemporary response, based on the expectation that industrial production can ensure low costs and adequate quality of housing. Yet several attempts to establish such production have failed. And this time around the demand for sustainability is added. This study therefore asks which complementary factors are required for these methods to deliver affordable housing in Europe scrutinizing the Swedish experiences. The argument is that beyond technology, processes, and products, additional elements such as raw materials, customers, finance, competencies, and a supportive production culture are essential. Institutional theory provides a framework, emphasizing that not only industries defined by firms, products, technologies and markets are needed, but broader industry exchange fields. The analysis shows that the Swedish modular housing sector exhibits key features of such a field: a focal population of firms and partners, a shared purpose, semi-permeable boundaries, and a relational structure with core and peripheral actors, multiple logics, and a partial collective identity. These features support some isomorphism and diffusion among participants and to new participants. Moreover, so far, the industry has been able to deliver acceptable levels of sustainability. Such institutional arrangements are difficult to replicate. While technologies can be transferred, establishing a functioning field requires wider interventions, including financial support and public regulation. The Swedish case further demonstrates that intervening in and changing market conditions demands strong and long-term efforts, including sustained demand from public, semi-public, and private actors.