Public demand is emphasized as a major driving force for environmental innovation addressing societal transitions. In 2007, the European Commission adopted the ‘lead market initiative’ to tackle grand societal challenges across several industrial sectors, of which construction has the greatest sustainability impact. To study how public clients can create lead markets for environmental innovation in construction, we build on recent advancements emphasizing market-shaping strategies as critical for societal transitions. The paper investigates how public construction clients proactively use and combine market-shaping strategies to create lead markets for environmental innovations. Our empirical findings, from a multiple-case study of three public construction clients in Sweden, illustrate how the clients use and combine a broad range of market-shaping strategies related to seven groups of lead market advantages. We contribute to theory by cross-fertilizing market-shaping and lead market literatures and showing how market-shaping strategies interplay in achieving combinatory effects, which incentivize creation of lead markets for environmental innovation towards sustainability transitions.

Purpose: This paper aims to examine how different contextual contingency factors and organizational goals influence construction clients’ decision-making when procuring contractors in the housing sector. More specifically, it investigates how clients’ choice of procurement strategies and organizational control systems is contingent upon various contextual factors and organizational goals.

Design/methodology/approach: It is based on an explorative interview study of clients and contractors in the Swedish housing sector underpinned by a review of organizational control literature.

Findings: The client's knowledge and resources, as well as project complexity and uncertainty, are the most important contextual contingency factors, while property management and sustainable development are the most important organizational goals that housing clients consider when designing procurement strategies.

Research limitations/implications: The paper contributes to the understanding of how construction clients choose procurement strategies, by providing new insights into effects of the mentioned contextual contingency factors and organizational goals on clients’ choice of control systems through their procurement strategies.

Practical implications: Property owners who continuously procure housing projects with sustainability requirements and high degrees of complexity and uncertainty should develop knowledge and resources related to their client role, to enable the design and implementation of appropriate procurement strategies.

Originality/value: Novel aspects of the paper are the demonstration of the value of a holistic approach, considering both contextual contingency factors and organizational goals, when selecting control systems and explicit discussion of how the client's knowledge and resources influence possibilities to implement different control systems.

Purpose

This purpose of this study is to explore how the public client, the engineering consultant and the sub-consultant perceive and address innovation outcomes and processes in the planning and design phase of infrastructure projects.

Design/methodology/approach

An explorative single-case study of a public infrastructure project was carried out. A multi-dimensional innovation framework, including innovation outcomes and processes, was applied.

Findings

Innovation outcomes in terms of products and processes from the engineering consultant’s work in the planning and design phase hold untapped potential for enhancing innovation in construction projects. Additionally, findings indicate that sub-consultants from outside the construction industry (i.e. external knowledge resources) play a crucial role in introducing more radical innovations based on adaptation.

Originality/value

The findings provide an empirical illustration of a further developed innovation framework that can be used by both scholars and practitioners to analyze and discuss the multi-dimensional concept of innovation in the construction context. Additionally, the findings highlight the importance of capturing perceptions of various actors regarding innovation outcomes and processes to facilitate innovation in an inter-organizational context.

Collaborative contracting models are increasingly being adopted for complex construction projects but achieving consistent improvement and broader alignment of such practices remains challenging. Based on a longitudinal study of collaborative contracting in Swedish infrastructure construction, this article argues that legitimacy concerns among major public sector clients contribute to this difficulty. Top management often responds to external criticism by quickly adopting new models, thus delegitimizing earlier practices and disrupting continuity at the operational level. Consequently, learning is cut short, and performance gains are unrealized—leading to repeated cycles of short-lived collaborative initiatives without sustained improvement.

Inter-organizational collaboration within the construction industry consists of both engineered and emerged aspects. Engineered formal practices and emerged informal practices interplay in their influence on the overall success of client-contractor collaboration. This interplay has been recognized but is still understudied and requires further research to increase the understanding of how the interplay functions. To enable the study of the emerged aspects of collaboration we applied a practice-based approach in a longitudinal multiple case study, including four projects for operation and maintenance of road infrastructure. This paper contributes to the literature on collaboration in construction by providing detailed examples of how the interplay between engineered and emerged collaboration may unfold, showing how formal and informal practices contribute to the development of vicious and virtuous cycles of collaboration. Furthermore, our findings indicate that a virtuous cycle of only informal practices can become a weakness if unexpected problems occur. Project managers should therefore be encouraged to implement formal collaboration, even if the project team is already in a virtuous cycle of informal collaboration. 

Despite its declared importance for governing complexity in projects, few empirical studies have studied how different types of supply chain integration (SCI) activities (e.g., coordinative and collaborative integration) interplay and affect performance. To address this gap, the purpose of this paper is to study how complexity can be governed through coordinative and collaborative SCI, and how their interplay affects performance in project-based buyer-supplier relationships. We apply structural equation modeling, using dyadic empirical data from 102 infrastructure projects. The overall results verify our developed model and illuminate how the interplay between contractual and relational governance, in terms of coordinative and collaborative SCI, mediates the effect of technical and organizational complexity on project performance. This study contributes to theory and practice by distinguishing between contractual governance based on formal coordinative SCI and relational governance based on emerged collaborative SCI, as well as showing how their interplay affects performance in project-based supply chains.

Many studies have emphasized the importance of engineering services and their adaptability to reduce carbon emissions in the construction sector. As public clients procure these services, selecting efficient (procurement-related) control modes is critical. However, studies of control modes and their effect on adaptability are scarce. The purpose of this study is to investigate how, through the choice of control modes, a public client may create incentives for service providers to deliver carbon reduction solutions in the construction phase. In this study, a procurement model and a classification model are developed, and a single case study of an engineering service contract aiming for carbon reduction is used to illustrate the models. The empirical data include 16 interviews with respondents from the 2 contract parties, i.e., the client and service provider. The findings show that it is important to create incentives for adaptability when procuring engineering services with the aim of reducing carbon emissions in the construction phase. The findings also highlight the importance of these incentives being created both in relation to the selection of service providers and to the responsibility between the contract parties. The models developed in the study may serve as important tools for both practitioners and researchers. 

As a part of supply chain management (SCM) initiatives to improve performance and productivity in construction projects, the use of construction logistics setups (CLSs) operated by third-party logistics (TPL) providers have increased. CLSs are often used in complex multi-project contexts, such as urban development districts, where extensive coordination of actors, resources, and activities is needed. The purpose of this paper is twofold: to investigate how main contractors engage in horizontal relationships with each other when coordinating activities and resources within and across projects in a multi-project context, and to investigate what role a TPL provider assumes when engaging in relationships with main contractors in a multi-project context. The findings are based on a case study of an urban development district with a mandatory TPL-operated CLS, and we apply the industrial network approach. In this multi-project context, the main contractors engage in coopetitive relationships, coordinating activities and resources within and across projects. The TPL provider coordinates actors, resources, and activities, facilitating smoother production by managing logistics and mediating coopetitive relationships. This can be understood as a multi-project coordination role and extends the role SCM can play in construction. In that role, a TPL provider can minimise tensions between coopetitive actors across a multitude of horizontal relationships and projects.

Using a proper control system is vital to ensure that project delivery is satisfactory for the client. Prior research has identified relationship history as a potentially vital contingency factor in organizational control, but there is a lack of research on how relationship history affects how different control systems function in project-based contexts. In the Swedish infrastructure market, increased demand has resulted in a need for increased supply capacity. This has spurred new entrants that have no relationship history with the major client, the Swedish Transport Administration. The purpose is therefore to compare how the client’s control systems function in construction projects with familiar (known to the client) and unfamiliar (new to the client) contractors. The case study involves 32 interviews conducted in six infrastructure projects, three with unfamiliar contractors. Findings show that relationship history heavily influences how the control systems function, especially bureaucratic and clan control. The new contractors are unaccustomed with the client’s extensive use of bureaucratic control and perceive it as less suitable in design-build contracts. Furthermore, the lack of relationship history reduces the opportunity to use clan control from the beginning of a project, due to unfamiliarity with both the client and the control system.

Purpose - This paper aims to identify how a public client’s use of control systems (process, output and social control) affect innovation possibilities in construction projects.

Design/methodology/approach - Semi-structured interviews about six infrastructure projects were conducted to identify respondents’ views on innovation possibilities. These possibilities were then analyzed from an organizational control perspective within principal–agent relationships between the Swedish Transport Administration (STA) and their contractors.

Findings - How the client uses control systems affects innovation possibilities. Relying on process control could negatively affect innovation opportunities, whereas output control could have a positive influence. In addition, social control seems to have a weak effect, as the STA appears not to use social control to facilitate joint innovation. Public clients must comply with the Public Procurement Act and, therefore, retain the requirements specified in the tendering documents. Much of the steering of the execution is connected to the ex ante phase (before signing the contract), which affects innovation possibilities in the design and execution phases for the contractor.

Research limitations/implications

This study was conducted with only one client, thus limiting its generalizability. However, the findings provide an important stepping stone to further investigation into balancing control systems and creating innovation possibilities in a principal–agent relationship.

Originality/value - Although public procurement has increasingly been emphasized as a major potential source of innovation, studying how a public client’s use of organizational control systems affects innovation possibilities in the construction sector has received scant attention.