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Policies, Programs and People that Shape Innovation in Housing by Andrew R. Sanderford, Andrew P. McCoy

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CHAPTER 5

A REVIEW OF THE RESIDENTIAL CONSTRUCTION SUPPLY CHAIN AND ITS CHARACTERISTICS

Andrew McCoy

Compared to other industries, residential construction does not follow a traditional model of innovation. Utterback (1994) discussed three distinct phases of traditional industry innovation models through time: (1) early fluid—product enhancement is critical, (2) transitional—dominant product designs emerge, and (3) specific—competition happens between a few large firms through performance improvements. However, complexity in the homebuilding industry presents challenges to traditional innovation models that resist the use of innovative products, processes, and services. Residential construction is considered a complex product and system (CoPS) ...

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