Purpose: The recent promotion of prefabricated housing (PH) in China has resulted in a prosperous period for its implementation. However, transaction costs (TCs) cause low economic efficiency to stakeholders and hinder the further promotion of PH. No relevant study has yet been made to investigate the TCs and their causes in the PH field. This paper identifies critical TCs and explores the influencing factors from the developers' perspective. Design/methodology/approach: Semi-structured interviews and a questionnaire survey were used to collect data about TCs and influencing factors. The most influential factors are identified with their impacts on particular TCs, yielded from correlation analysis and logistic regression. Findings: From the developers' perspective in China's PH market, this study identified that the most concerning sources of TCs are: hidden costs arising from disputes, extra workloads from design changes, learning costs, intensive communication and coordination in assembly and unexpected information costs in decision-making. The use of an ordered logistic regression approach indicates that the four most influential factors are: qualification of the general contractor, mandatory local policies, owner type and competitiveness of the developer. Practical implications: To reduce the TCs, experiencing learning and ensuring the design scheme's complicity are recommended to save information searching and exchanging costs. The implications for the PH developers are for them to: (1) professionalize their own organization and (2) procure high-qualified general contractors. For the policymakers, this means they should improve the clarity of the mandatory local policies for PH step-by-step. Originality/value: By applying the TCs economic theory, this study explores factors that influence TCs in the PH industry. It sheds light on the influencing mechanism behind the TCs in the context of prefabricated housing.@en

Recently, the implementation of prefabricated housing (PH) has become prevalent in China to achieve sustainability while ensuring green construction, innovative products, and higher quality. However, numerous challenges arise, such as the overrun costs, inexperienced workers, and the inefficient management process. High transaction costs (TCs) occur in the PH project supply chain since additional efforts are consumed for overcoming these challenges. This study aims to seek insights into TCs of PH and investigate strategies for minimizing the TCs thus smooth the development process of PH projects. Three key elements have been addressed throughout the thesis: supply chain, stakeholders, and transaction costs. Four-step research is employed to uncover the TCs in the PH supply chain, collect the stakeholders’ perceptions, investigates the causes of TCs, and explore decisions for reducing TCs. This thesis identifies three types of TCs in Chinese PH projects by their nature: due diligence costs, negotiation costs, monitoring and enforcement costs. Private stakeholders in China’s PH industry put more of their attention on TCs related to the specificity of prefabrication. The simple and joint strategies are provided for reducing their benefits lost from the unexpected TCs. Additionally, the value of the governmental TCs has been revealed for reducing the TCs of PH, which inspires and supports the policymakers to develop a healthy policy environment.@en

Sustainable development has been the focus of all major industries in the world, especially in the construction industry. As one of the sustainable construction modes, housing industrialization (HI) is now absorbing a growing number of attentions that lead the industry to go green. However, the implementation of HI in China is far from satisfactory due to its low economic efficiency. This paper attempts to improve the HI supply chain from a new perspective-transaction costs (TCs). First, it provides an objective understanding of status quo of HI in particular in China. Then, the study outlines the basis of TCs theories and supply chain management theory, compiling literature review of the application of TCs and supply chain management in other fields to states the feasibility of their application in HI area. A theoretical framework is developed to explain the relationships and overlaps among these three areas. Analysis of the state of research in application of TCs in HI supply chain management is expected to help optimized the governance structure of HI supply chain.@en

Prefabrication has the potential to improve the efficiency and sustainability of housing production. However, there are various challenges in the realization of prefabricated housing (PH) from the stakeholder's perspective. Transaction costs (TCs) theory provides a particular angle that explains the invisible costs within transactions. This study aims to explore how perceptions of TCs vary for stakeholder groups and show the potential to reduce TCs in China. The distribution of TCs related to stages and stakeholders was investigated by a literature study and validated by expert interviews. Further, an existing framework of TCs was adopted to conduct a questionnaire survey for collecting perceptions of TCs from six stakeholder groups. The findings show that assembly, detailed design, and design change are the most highlighted TCs of PH. In particular, the component supplierscomplained of TCs from the points of detailed design and hiring skilled labor. The local governmentemphasized TCs on monitoring and enforcement in assembly, architectural design, and component transportation. This research contributes to the construction management community by acknowledging stakeholders in understanding their TCs, which also inspires the policy makers to reduce significant TCs to smooth transactions for the future of China's PH market.@en

The growing environmental problems, the rapid urbanization, and the disappearance of the demographic dividend in China has brought unprecedented opportunities to the development of prefabricated housing (PH). However, many barriers are hindering the promotion of PH, for instance, cost, lack of regulations, and the shortage of knowledge, among which cost is identified as one of the most critical barriers. Unlike previous studies focused only on production costs, this research aims to investigate transaction costs (TCs), e.g., searching costs, negotiation costs, and enforcement costs. First, this paper develops a theoretical TCs framework of the PH supply chain, based on an extensive literature review. Secondly, an empirical study was conducted on two cases in Chongqing to validate the TCs framework. Key stakeholders are identified by Social Network Analysis (SNA). Subsequently, 25 semi-structured interviews were conducted with key stakeholders, both to verify the new TCs framework and to explore stakeholder concerns about TCs. The centrality metrics by SNA identified six key stakeholders who have a significant influence on TCs. It is found from the interviews that both the conceptual phase and the construction phase are stages where the majority of TCs occur. Both the developer and the general contractor are paying for more TCs compared to the other stakeholders. This study contributes to theory by initially introducing the concepts of TCs to the PH field, and the findings bring implications on the governance of PH supply chain to both private stakeholders and the government.@en

Cost is identified as one of the critical barriers that prohibit the implementation of Prefabricated housing (PH). Unlike the previous studies mainly focused on the physical costs, this research aims to investigate a new dimension of costs-transaction costs (TCs), e.g. searching costs, negotiation costs, contract costs, etc., and explore how TCs occur through the whole supply chain of PH in order to reduce the frictions to PH. Firstly, the supply chain of PH in China is built by explanation in terms of stakeholders, stages and tasks. Secondly, based on the TCs theory, the TCs along the supply chain are subsequently identified in each phase of the PH supply chain to build a generic framework of TCs. Results generated from this study will be the theoretical foundation for empirical study to improve the economic efficiency of the PH supply chain.@en