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

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.