Modeling relational performance of the supply chains for prefabricated housebuilding in New Zealand

Abstract

PurposePrefabricated construction has proven to be superior in terms of affordability and sustainability over the years. As a result of sustainable production, prefabricated housebuilding has evolved into a distinct industry reliant on supplier companies acting as supply chains (SCs) for housing projects. These companies' performance is critical to the successful implementation of prefabricated housebuilding technologies. However, in comparison to those choosing manufacturing as a strategy in other industries, the life span of these companies, providing innovative housing solutions, is relatively short. This is due to critical factors influencing the performance, but the inter-relationship of the performance dimensions is more significant. This study establishes the inter-relationship of the companies involved in house building with steel prefabricated housebuilding technologies.Design/methodology/approachThe most recent factors were extracted from the literature. The relationships were developed using the interpretive structural modeling (ISM) method with the input from industry experts, and the driving factors were determined using the Matrice d'Impacts Croisés Multiplication Appliqués à un Classement (MICMAC) technique.FindingsCritical performance factors were classified according to performance dimensions, ranked and classified based on driving and dependence power. The inter-relationships among the performance dimensions of time, quality, cost, delivery, features and innovation were determined. Key performance strategies were proposed for prefabricated housebuilding companies involved in manufacturing and/or assembly of steel products.Originality/valueThis study established the interrelationship of performance dimensions for prefabricated house building (PHB) companies to develop strategies against critical challenges to remain competitive in the housing market. Previous research had not looked into interrelationship among the performance dimensions. The proposed performance strategies are applicable to supplier organizations using steel prefabricated technologies in similar markets around the world.