A cross-case study comparative analysis of key factors into the success and failure of residential prefabrication firms

Abstract

The purpose of this study was to gauge key factors into the success and failure of residential prefabrication firms and to uncover key risks and challenges that a firm looking to adopt this innovative approach may face in the New Zealand Construction Industry. A cross-case study comparative analysis was performed with 3 groups or clusters used for data collection and analysis. Unsuccessful prefabrication firms saw credit claims 13.34 times higher than unsuccessful non-prefabrication firms, however when adjusting for a potential skew, this trend remained but was 3.16 times higher. Other success factors included technology adoption, market timing, cash flow strategy and having sufficient profit margins. This study has highlighted the potential risks that an innovative construction methodology can bring. However, it has also identified common success factors including strategic market timing, technology adoption, investment in productive capacity, sufficient profit margins and usage of prefabrication finance products which assists with cash flow strategy.