Building Mass Customised Housing through Innovation in the Production System: Lessons from Japan

Abstract

In the paper we address the way Japanese housebuilders have developed innovative approaches to supplying highly customised housing. We draw on notions of path dependency to explore the evolution of Japan's large-scale industrialised housing suppliers, the way they have differentiated themselves from local suppliers, and their possible future evolution. We first outline how structural conditions influence the business strategies adopted by housebuilders in general. We then consider the evolution of the Japanese mass customised housebuilding industry, the innovations it has introduced across its production system, and how these have been shaped by the structural conditions within which the industry operates. Finally, we draw conclusions on the role of path dependency in shaping Japan's mass customised housing sector.