Journal Home Online First Current Issue Archive For Authors Journal Information 中文版

Engineering >> 2022, Volume 19, Issue 12 doi: 10.1016/j.eng.2021.09.013

Servitization in Construction and its Transformation Pathway: A Value-Adding Perspective

a SILC Business School, Shanghai University, Shanghai 201899, China
b School of Management, Huazhong University of Science and Technology, Wuhan 430074, China
c School of Civil and Hydraulic Engineering, Huazhong University of Science and Technology, Wuhan 430074, China

Received: 2021-06-01 Revised: 2021-09-28 Accepted: 2021-09-29 Available online: 2021-12-07

Next Previous

Abstract

Against the current social and technological background dominated by services and technology, new opportunities are opening up for the industrial transformation and upgrading of the construction industry. Considering the successful transformation and upgrading of the manufacturing industry through servitization, scholars and practitioners have begun to explore the possibility of servitization in the construction industry. Current practices and theory show that different understandings of servitization in the construction sector exist; however, they are still in their infancy and lack a deep and systematic awareness, which does not benefit the transformation and upgrading of construction through servitization. Therefore, this paper systematically analyzes the motivation, definition, and implications of servitization in construction based on the value-adding nature of servitization and considers the problems confronting the construction industry. To facilitate this development, transformation pathways for servitization in construction are analyzed from multiple angles, including value co-creation, service innovation, and networked operation, which are in line with the new trends in digital construction. In addition, based on the supporting elements of construction, which include finance, human resources, technology, materials, and equipment, this paper examines the impact of servitization on the construction industry’s ecology. In short, we expect that this systematic analysis and exposition can provide a holistic view of servitization in construction from the inside out for scholars and practitioners and can help to promote servitization in construction.

Figures

Fig. 1

Fig. 2

Fig. 3

Fig. 4

Fig. 5

Fig. 6

Fig. 7

References

[ 1 ] Overholt WH. China and the evolution of the world economy. China Econ Rev 2016;40:267–71. link1

[ 2 ] Vandermerwe S, Rada J. Servitization of business: adding value by adding services. Eur Manage J 1988;6(4):314–24. link1

[ 3 ] Raddats C, Baines T, Burton J, Story VM, Zolkiewski J. Motivations for servitization: the impact of product complexity. Int J Oper Prod Manage 2016;36(5):572–91.

[ 4 ] Raddats C, Kowalkowski C, Benedettini O, Burton J, Gebauer H. Servitization: a contemporary thematic review of four major research streams. Ind Mark Manage 2019;83:207–23. link1

[ 5 ] Leiringer R, Bröchner J. Editorial: service-led construction projects. Construct Manage Econ 2010;28(11):1123–9. link1

[ 6 ] Brady T, Davies A, Gann D. Can integrated solutions business models work in construction? Build Res Inform 2005;33(6):571–9. link1

[ 7 ] Lind H, Borg L. Service-led construction: is it really the future? Construct Manage Econ 2010;28(11):1145–53. link1

[ 8 ] Alderman N, Ivory C. Service-led projects: understanding the meta-project context. Construct Manage Econ 2010;28(11):1131–43. link1

[ 9 ] Hartmann A, Davies A, Frederiksen L. Learning to deliver service-enhanced public infrastructure: balancing contractual and relational capabilities. Construct Manage Econ 2010;28(11):1165–75. link1

[10] Robinson W, Chan P, Lau T. Finding new ways of creating value: a case study of servitization in construction. Res Technol Manage 2016;59(3):37–49. link1

[11] van Oorschot JAWH, Halman JIM, Hofman E. The continued adoption of housing systems in the Netherlands: a multiple case study. J Constr Eng Manage Innov 2019;2(4):167–90. link1

[12] Hellström M, Wikström R, Gustafsson M, Luotola H. The value of project execution services: a problem and uncertainty perspective. Construct Manage Econ 2016;34(4–5):272–85. link1

[13] Wang H, Liu D, Xie Y, Zhou H. Research on the mode of Internet Plus construction platform. J Eng Manage 2017;31(5):91–5. Chinese. link1

[14] Wang H, Liu D. Is servitization of construction the inevitable choice of Internet Plus construction? Front Eng Manage 2017;4(2):229–30. link1

[15] Koskela L. Application of the new production philosophy to construction. California: Stanford University; 1992. link1

[16] Liu D, Wang H, Zhou H. Modeling of construction service. J Eng Manage 2017;31:158–64. link1

[17] Roy R, Baines TS, Lightfoot HW, Benedettini O, Kay JM. The servitization of manufacturing: a review of literature and reflection on future challenges. J Manuf Technol Manage 2009;20(5):547–67. link1

[18] Goedkoop MJ, van Halen CJG, te Riele HRM, Rommens PJM. Product service systems—ecological and economical basics [Internet]. Lisbon: Portal de Conhecimentos; [cited 2021 Mar 6]. Available from: http:// www.portaldeconhecimentos.org.br/index.php/por/Conteudo/Product-ServiceSystems-Ecological-and-Economical-Basics. link1

[19] Baines TS, Lightfoot HW, Evans S, Neely A, Greenough R, Peppard J, et al. State-of-the-art in product-service systems. Proc Inst Mech Eng B J Eng Manuf 2007;221(10):1543–52. link1

[20] Beuren FH, Gomes Ferreira MG, Cauchick Miguel PA. Product-service systems: a literature review on integrated products and services. J Clean Prod 2013;47:222–31. link1

[21] Sun L, Li G, Jiang Z, Zheng L, He Z. Service-embedded manufacturing: advanced manufacturing paradigm in 21st century. China Mech Eng 2007;18 (19):2307–12. Chinese. link1

[22] Sun L, Gao J, Zhu C, Li G, He Z. Service-oriented manufacturing: a new product mode and manufacturing paradigm. China Mech Eng 2008;19:2600–4. Chinese. link1

[23] Jiang ZZ, Feng G, Yi Z, Guo X. Service-oriented manufacturing: a literature review and future research directions. Front Eng Manag. In press.

[24] Lin W, Jiang H, Li N. A survey on the research of service-oriented manufacturing. Ind Eng Manage 2009;14:1–6. link1

[25] Jiang Z, Li N, Wang L, Miao R. Operations management of service-oriented manufacturing. Beijing: Science Press; 2016. link1

[26] Neely A. Exploring the financial consequences of the servitization of manufacturing. Oper Manage Res 2008;1(2):103–18. link1

[27] Maloney WF. Construction product/service and customer satisfaction. J Constr Eng Manage 2002;128(6):522–9. link1

[28] Alderman N, Ivory C, McLoughlin I, Vaughan R. Sense-making as a process within complex service-led projects. Int J Proj Manage 2005;23(5):380–5. link1

[29] Hoezen M, van Rutten J, Voordijk H, Dewulf G. Towards better customized service-led contracts through the competitive dialogue procedure. Construct Manage Econ 2010;28(11):1177–86. link1

[30] Razmdoost K, Mills G. Towards a service-led relationship in project-based firms. Construct Manage Econ 2016;34(4–5):317–34. link1

[31] Straub AD. Competences of maintenance service suppliers servicing endcustomers. Construct Manage Econ 2010;28(11):1187–95. link1

[32] Jacobsson M, Roth P. Towards a shift in mindset: partnering projects as engagement platforms. Construct Manage Econ 2014;32(5):419–32. link1

[33] Robinson W, Chan P. Servitization in construction: towards a focus on transitional routines. In: Raiden AB, Aboagye-Nimo E, editors. Proceedings of the 30th Annual ARCOM Conference; 2014 Sep 1–3; Portsmouth, UK. Reading: Association of Researchers in Construction Management; 2014. p. 905–14. link1

[34] Robinson WG, Chan PW, Lau T. Sensors and sensibility: examining the role of technological features in servitizing construction towards greater sustainability. Construct Manag Econ 2016;34(1):4–20. link1

[35] Smyth H, Razmdoost K, Mills GRW. Service innovation through linking design, construction and asset management. Built Env Proj Asset Manage 2019;9(1):80–6. link1

[36] Smyth H, Duryan M, Kusuma I. Service design for marketing in construction: tactical implementation in the ‘‘business development management”. Built Environ Proj Asset Manage 2019;9(1):87–99. link1

[37] Fuentes MEG. Co-creation and co-destruction of experiential value: a service perspective in projects. Built Environ Proj Asset Manage 2019;9(1):100–17. link1

[38] Lusch RF, Vargo SL, O’Brien M. Competing through service: insights from service-dominant logic. J Retail 2007;83(1):5–18. link1

[39] Gao X, Pishdad-Bozorgi P. BIM-enabled facilities operation and maintenance: a review. Adv Eng Inform 2019;39:227–47. link1

[40] Zhang W, Banerji S. Challenges of servitization: a systematic literature review. Ind Mark Manage 2017;65:217–27. link1

[41] Baines T, Ziaee Bigdeli A, Sousa R, Schroeder A. Framing the servitization transformation process: a model to understand and facilitate the servitization journey. Int J Prod Econ 2020;221:107463. link1

[42] Bowman C, Ambrosini V. Value creation versus value capture: towards a coherent definition of value in strategy. Br J Manage 2000;11(1):1–15. link1

[43] Vargo SL, Maglio PP, Akaka MA. On value and value co-creation: a service systems and service logic perspective. Eur Manage J 2008;26(3):145–52. link1

[44] Tao F, Qi Q. New IT driven service-oriented smart manufacturing: framework and characteristics. IEEE Trans Syst Man Cybern Syst 2019;49(1):81–91. link1

[45] Albert H, Arnold M, Li F. Illuminating the dark spaces of healthcare with ambient intelligence. Nature 2020;585(7824):193–202. link1

[46] Du M, Chen Q, Xiao J, Yang H, Ma X. Supply chain finance innovation using blockchain. IEEE Trans Eng Manage 2020;67(4):1045–58. link1

[47] Lipper L, Thornton P, Campbell BM, Baedeker T, Braimoh A, Bwalya M, et al. Climate-smart agriculture for food security. Nat Clim Chang 2014;4 (12):1068–72. link1

[48] Woodhead R, Stephenson P, Morrey D. Digital construction: from point solutions to IoT ecosystem. Autom Construct 2018;93:35–46. link1

[49] Ding Z, Liu S, Liao L, Zhang L. A digital construction framework integrating building information modeling and reverse engineering technologies for renovation projects. Autom Construct 2019;102:45–58. link1

[50] Klinc R, Turk Zˇ. Construction 4.0—digital transformation of one of the oldest industries. Econ Bus Rev 2019;21(3):393–410. link1

[51] Lerch C, Gotsch M. Digitalized product-service systems in manufacturing firms: a case study analysis. Res Technol Manage 2015;58(5):45–52. link1

[52] Grubic T. Remote monitoring technology and servitization: exploring the relationship. Comput Ind 2018;100:148–58. link1

[53] Belvedere V, Grando A. ICT-enabled time performance: an investigation of value creation mechanisms. Prod Plann Contr 2016;28(1):75–88. link1

[54] Coreynen W, Matthyssens P, Van Bockhaven W. Boosting servitization through digitization: pathways and dynamic resource configurations for manufacturers. Ind Mark Manage 2017;60:42–53. link1

[55] Vendrell-Herrero F, Bustinza OF, Parry G, Georgantzis N. Servitization, digitization and supply chain interdependency. Ind Mark Manage 2017;60:69–81. link1

[56] Paschou T, Rapaccini M, Adrodegari F, Saccani N. Digital servitization in manufacturing: a systematic literature review and research agenda. Ind Mark Manage 2020;89:278–92. link1

[57] Wang K, Jiang Z, Peng B, Jing H. Servitization of manufacturing in the new ICTs era: a survey on operations management. Front Eng Manage 2021;8 (2):223–35. link1

[58] Sawhney A, Riley M, Irizarry J. Construction 4.0: introduction and overview. In: Sawhney A, Riley M, Irizarry J. Construction 4.0. London: Routledge; 2020. p. 3–22.

[59] Deng T, Zhang K, Shen ZJ. A systematic review of a digital twin city: a new pattern of urban governance toward smart cities. J Manage Sci Eng 2021;6 (2):125–34. link1

[60] Payne AF, Storbacka K, Frow P. Managing the co-creation of value. J Acad Mark Sci 2008;36(1):83–96. link1

[61] Sjödin D, Parida V, Kohtamäki M, Wincent J. An agile co-creation process for digital servitization: a micro-service innovation approach. J Bus Res 2020;112:478–91. link1

[62] Lenka S, Parida V, Wincent J. Digitalization capabilities as enablers of value co-creation in servitizing firms. Psychol Mark 2017;34(1): 92–100. link1

[63] Azhar S. Building information modeling (BIM): trends, benefits, risks, and challenges for the AEC industry. Leadership Manage Eng 2011;11(3): 241–52. link1

[64] Roupé M, Johansson M, Maftei L, Lundstedt R, Viklund-Tallgren M. Virtual collaborative design environment: supporting seamless integration of multitouch table and immersive VR. J Constr Eng Manage 2020;146 (12):04020132. link1

[65] Lin YC, Chen YP, Yien HW, Huang CY, Su YC. Integrated BIM, game engine and VR technologies for healthcare design: a case study in cancer hospital. Adv Eng Inform 2018;36:130–45. link1

[66] Motamedi A, Wang Z, Yabuki N, Fukuda T, Michikawa T. Signage visibility analysis and optimization system using BIM-enabled virtual reality (VR) environments. Adv Eng Inform 2017;32:248–62. link1

[67] Xu J, Lu W, Xue F, Chen K. ‘Cognitive facility management’: definition, system architecture, and example scenario. Autom Construct 2019;107: 102922. link1

[68] Tushar W, Wijerathne N, Li WT, Yuen C, Poor HV, Saha TK, et al. Internet of things for green building management: disruptive innovations through lowcost sensor technology and artificial intelligence. IEEE Signal Process Mag 2018;35(5):100–10. link1

[69] Balvedi BF, Ghisi E, Lamberts R. A review of occupant behaviour in residential buildings. Energy Build 2018;174:495–505. link1

[70] Barthelmes VM, Li R, Andersen RK, Bahnfleth W, Corgnati SP, Rode C. Profiling occupant behaviour in Danish dwellings using time use survey data. Energy Build 2018;177:329–40. link1

[71] Furszyfer Del Rio DD, Sovacool BK, Bergman N, Makuch KE. Critically reviewing smart home technology applications and business models in Europe. Energy Policy 2020;144:111631. link1

[72] Rachinger M, Rauter R, Müller C, Vorraber W, Schirgi E. Digitalization and its influence on business model innovation. J Manuf Tech Manage 2019;30 (8):1143–60. link1

[73] Kohtamäki M, Parida V, Oghazi P, Gebauer H, Baines T. Digital servitization business models in ecosystems: a theory of the firm. J Bus Res 2019;104:380–92. link1

[74] Zhang S, Pan F, Wang C, Sun Y, Wang H. BIM-based collaboration platform for the management of EPC projects in hydropower engineering. J Constr Eng Manage 2017;143(12):04017087. link1

[75] Yan H, Yang N, Peng Y, Ren Y. Data mining in the construction industry: present status, opportunities, and future trends. Autom Construct 2020;119:103331. link1

[76] Pan Y, Zhang L. Roles of artificial intelligence in construction engineering and management: a critical review and future trends. Autom Construct 2021;122:103517. link1

[77] Al Qady M, Kandil A. Concept relation extraction from construction documents using natural language processing. J Constr Eng Manage 2010;136(3):294–302. link1

[78] Ur-Rahman N, Harding JA. Textual data mining for industrial knowledge management and text classification: a business oriented approach. Expert Syst Appl 2012;39(5):4729–39. link1

[79] Chen HM, Chang KC, Lin TH. A cloud-based system framework for performing online viewing, storage, and analysis on big data of massive BIMs. Autom Construct 2016;71:34–48. link1

[80] Zheng J, Sundhararajan M, Gao XZ, Vahdat Nejad H. Analysis of collaborative design and construction collaborative mechanism of cloud BIM platform construction project based on green computing technology. J Intell Fuzzy Syst 2018;34(2):819–29. link1

[81] Bello SA, Oyedele LO, Akinade OO, Bilal M, Davila Delgado JM, Akanbi LA, et al. Cloud computing in construction industry: use cases, benefits and challenges. Autom Construct 2021;122:103441. link1

[82] Du J, Shi Y, Zou Z, Zhao D. CoVR: cloud-based multiuser virtual reality headset system for project communication of remote users. J Constr Eng Manage 2018;144(2):04017109. link1

[83] Allen BJ, Chandrasekaran D, Basuroy S. Design crowdsourcing: the impact on new product performance of sourcing design solutions from the ‘‘crowd”. J Mark 2018;82(2):106–23. link1

[84] Shergadwala M, Forbes H, Schaefer D, Panchal JH. Challenges and research directions in crowdsourcing for engineering design: an interview study with industry professionals. IEEE Trans Eng Manage 2020:1–13. link1

[85] El-Diraby T, Krijnen T, Papagelis M. BIM-based collaborative design and socio-technical analytics of green buildings. Autom Construct 2017;82: 59–74. link1

[86] Paolini A, Kollmannsberger S, Rank E. Additive manufacturing in construction: a review on processes, applications, and digital planning methods. Addit Manuf 2019;30:100894. link1

[87] Delgado Camacho D, Clayton P, O’Brien WJ, Seepersad C, Juenger M, Ferron R, et al. Applications of additive manufacturing in the construction industry—a forward-looking review. Autom Construct 2018;89:110–9. link1

[88] Lim S, Buswell RA, Le TT, Austin SA, Gibb AGF, Thorpe T. Developments in construction-scale additive manufacturing processes. Autom Construct 2012;21:262–8. link1

[89] Davila Delgado JM, Oyedele L, Ajayi A, Akanbi L, Akinade O, Bilal M, et al. Robotics and automated systems in construction: understanding industryspecific challenges for adoption. J Build Eng 2019;26:100868. link1

[90] Li H, Luo X, Skitmore M. Intelligent hoisting with car-like mobile robots. J Constr Eng Manage 2020;146(12):04020136. link1

[91] Melenbrink N, Werfel J, Menges A. On-site autonomous construction robots: towards unsupervised building. Autom Construct 2020;119:103312. link1

[92] Niu Y, Lu W, Chen K, Huang GG, Anumba C. Smart construction objects. J Comput Civ Eng 2016;30(4):04015070. link1

[93] Kochovski P, Stankovski V. Supporting smart construction with dependable edge computing infrastructures and applications. Autom Construct 2018;85:182–92. link1

[94] Tam VWY, Tam CM, Zeng SX, Ng WCY. Towards adoption of prefabrication in construction. Build Environ 2007;42(10):3642–54. link1

[95] www.mckinsey.com [Internet]. Chicago: McKinsey & Company; 2019 [cited 2021 Sep 30]. Available from: https://www.mckinsey.com/businessfunctions/operations/our-insights/modular-construction-from-projects-toproducts. link1

[96] Cheng JCP, Chen W, Chen K, Wang Q. Data-driven predictive maintenance planning framework for MEP components based on BIM and IoT using machine learning algorithms. Autom Construct 2020;112:103087. link1

[97] Liu S, Schiavon S, Das HP, Jin M, Spanos CJ. Personal thermal comfort models with wearable sensors. Build Environ 2019;162:106281. link1

[98] Li D, Menassa CC, Kamat VR. Non-intrusive interpretation of human thermal comfort through analysis of facial infrared thermography. Energy Build 2018;176:246–61. link1

[99] Jung W, Jazizadeh F. Human-in-the-loop HVAC operations: a quantitative review on occupancy, comfort, and energy-efficiency dimensions. Appl Energy 2019;239:1471–508. link1

[100] Kim J, Zhou Y, Schiavon S, Raftery P, Brager G. Personal comfort models: predicting individuals’ thermal preference using occupant heating and cooling behavior and machine learning. Build Environ 2018;129:96–106. link1

[101] Xu G, Li M, Chen CH, Wei Y. Cloud asset-enabled integrated IoT platform for lean prefabricated construction. Autom Construct 2018;93:123–34. link1

[102] Grilo A, Jardim-Goncalves R. Cloud-Marketplaces: distributed e-procurement for the AEC sector. Adv Eng Informatics 2013;27(2):160–72. link1

[103] Jardim-Goncalves R, Grilo A. SOA4BIM: putting the building and construction industry in the Single European Information Space. Autom Constr 2010;19:388–97. link1

[104] Fan Y, Huang C, Wang Y, Zhang L. Architecture and operational mechanisms of networked manufacturing integrated platform. Int J Prod Res 2005;43 (12):2615–29. link1

[105] Boje C, Guerriero A, Kubicki S, Rezgui Y. Towards a semantic construction digital twin: directions for future research. Autom Construct 2020;114:103179. link1

[106] Tao F, Qi Q. Make more digital twins. Nature 2019;573(7775):490–1. link1

[107] Ma Z, Cai S, Mao N, Yang Q, Feng J, Wang P. Construction quality management based on a collaborative system using BIM and indoor positioning. Autom Construct 2018;92:35–45. link1

[108] Xu Q, Chong HY, Liao PC. Collaborative information integration for construction safety monitoring. Autom Construct 2019;102:120–34. link1

[109] Guofeng M, Jianyao J, Shan J, Zhijiang W. Incentives and contract design for knowledge sharing in construction joint ventures. Autom Construct 2020;119:103343. link1

[110] Liu Z, Wang H, Li H. Model of equipment sharing between contractors on construction projects. J Constr Eng Manage 2018;144(6):04018039. link1

[111] McNeil P. Secure IoT deployment in the cement industry. In: Akhtar SS, Kline C, Kline J, Keiser A, Poulsen K, Fonta P, editors. 2017 IEEE-IAS/PCA Cement Industry Technical Conference; 2017 May 21–25; Calgary, Canada. New York City: Curran Associates; 2017. link1

[112] Rasmussen NV, Beliatis MJ. IoT based digitalization and servitization of construction equipment in concrete industry. In: Baldini G, Presser M, Skarmeta AF, Tropea G, Detti A, Nakazato H, editors. 2019 Global IoT Summit (GIoTS); 2019 Jun 17–21; Aarhus, Denmark. New York City: Curran Associates; 2019. link1

[113] Bilal M, Oyedele LO, Qadir J, Munir K, Ajayi SO, Akinade OO, et al. Big data in the construction industry: a review of present status, opportunities, and future trends. Adv Eng Inform 2016;30(3):500–21. link1

[114] Fang W, Ding L, Love PED, Luo H, Li H, Peña-Mora F, et al. Computer vision applications in construction safety assurance. Autom Construct 2020;110:103013. link1

[115] Buckman AH, Mayfield M, Beck SBM. What is a smart building? Smart Sustain Built Environ 2014;3(2):92–109. link1

[116] Dong B, Prakash V, Feng F, O’Neill Z. A review of smart building sensing system for better indoor environment control. Energy Build 2019;199:29–46. link1

Related Research