Sustainable advantages and corporate strategies - The case of prefabrication in Hong Kong

The Hong Kong Government through its Housing Authority (HA) has typically provided more than half of the total new residential units per annum. Being a major client of housing construction, the HA has influential roles to play in driving innovations. Our earlier research has identified a few leading contractors who have been repeatedly gaining major market shares in the public housing construction sector. It suggests that some contractors have responded to the client's demand on prefabrication better than the others. This paper will examine how the leading contractors and the others in the public sector have responded to the mandatory requirement of prefabrication. In particular, we shall investigate (i) whether prefabrication by itself is a sustainable source of competitive advantage, and if not, what could be the sources? (ii) how the leading contractors have formulated and implemented their competitive strategies, and (iii) the constraints or difficulties that other "non-leading" contractors have had in securing works. The findings of this study will contribute to further understanding of the clients' roles in driving innovations in the construction industry, and the strategic management of contractors in search of their sustainable advantages.