Abstract
M.Tech. (Construction Management)
The construction industry in South Africa and beyond has gained a reputation for delivering products to its clientele. As such, the industry has remained fixated on the attainment of the parameters associated with the iron triangle time, cost and quality; and more recently sustainability. This has prioritized project management success above project success. Accordingly, industry clients have been provided with buildings and infrastructure which do not achieve the initial objectives which led to their commissioning in the first instance, hence the prevalence in dissatisfied customers. The emergence of servitization and servitized business models stems from a need to curb this trend. Servitization is considered as a move from just selling products to offering a coordinated blend of products and services that deliver value in use. Yet, whereas other economic sectors have deployed this business model to enhance user/client satisfaction, the construction industry seems to be lagging. This study explored the factors influencing the adoption of servitization in the South African construction industry, relying on examples from other sectors. A systematic literature review was adopted as the research design for this study. Literature identified was selected based on a set of keywords, over a specified period and the database consulted. The selected articles were analysed using qualitative content analysis (QCA) based on pre-selected themes. The results show that the expanding attention for increasing profit margins, service component, competitive advantages and mostly “sustainability” are probable factors influencing the adoption of servitization in the construction industry. Furthermore, the study identified the critical success factors as well as failure factors which will affect the adoption of servitized business models in the South African construction industry. Finally, leveraging on the identified factors mentioned previously and the business model canvas (BMC), the study proposed a conceptual framework for the adoption of servitized business models in the South African construction industry. This study contributes to body of knowledge on product-service systems, especially as it pertains to servitization in the construction industry. Expectedly, the findings from the study will provide a platform for sustained discourse around the applicability and utility of these models in the South African construction industry in bringing about increased value-in-use for clients across the lifecycle of projects.