1 Institute of Business and Technology, Faculty of Social Sciences, Aarhus University, Aarhus University2 Department of Business Development and Technology, Aarhus BSS, Aarhus University3 Department of Business Development and Technology, Aarhus BSS, Aarhus University
Supply networks in complex B2B- construction deliver knowledge, materials, components, subsystems, competences, workforce and management. The delivery network and its governance forms are partly permanent, partly project specific. Integration upstream varies by project, constituting a range of delivery types; parts, components and subsystems. The project configuration and orchestrated governance forms are not always successful, and failures emerge. The paper aims at studying governance forms in delivery networks using operational failures as litmus. Operation management approaches is used as theoretical frame. The case study is a Danish architectural, engineering and construction supply network for one building project. The governance forms found were; internal integration and hierarchy, SCM-efforts, subsystem deliveries, and contracting per project. There was a very uneven upstream integration; Three engineering design areas were integrated with production and even the client. The architectural design is the most 'clear-cut' singular, whereas the supplies of pre-cast concrete core, elevator and kitchen were integrated knowledge, material, workforce and management subsystem deliveries. 160 failures occurred during three month observation. The costs were 8 pct. of the production budget. None of the mobilised governance forms fully prevented failures, especially subsystem delivery and internal integration was underperforming.
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