Abstract
Traditional organizational studies emphasize department groupings and the management style of different organizations that are often based on common tasks, products, geography and processes. They also mainly emphasize the connection between construction supply chain and procurement methods but have not analysed of how external factors shape the organization structure and consequently the supply chain. Three things are analysed: the impact of competitive pressure, required competence and degree of flexibility on various modes of construction organization used for producing multi‐family residential housing in Sweden from a transaction cost theory perspective. Organization structures depend on the level of project engagement, competence demanded by the preferred organization mode as well as the economic environment, and the level of construction activities.
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