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Purpose – The aim of this paper is to present part of continuing research on the challenges of entrepreneurial business ventures to commercialize innovative construction products in the residential construction industry. Design/methodology/approach – The authors use workshop and survey data on the role of the developer/builder to further develop the domain‐specific commercialization model for residential construction products. The authors propose a cross‐functional system to better facilitate innovation. Findings – Successful concurrent commercialization requires risk sharing among all members of a product's supply chain. The authors advocate concurrent management in commercialization, which requires information sharing and knowledge transfer among supply‐chain members early in a commercialization project and a special form of concurrent engineering for construction products, which is called concurrent commercialization (CC). Practical implications – The research indicates that addressing the developer/builder risk along the entire supply chain is one key determinant to a successful commercialization project. It also indicates that commercialization involves more than just technical product design; commercialization cuts across all functional areas. Originality/value – The research data, along with the review of the literature on product innovation and commercialization, lead one to advocate concurrent engineering for construction products termed concurrent commercialization (CC). Since the research clearly indicates that the developer/builder is the most reluctant customer in the supply chain, CC applied to construction products emphasizes the influence of mitigating developer/builder risks in the design of a commercialization project.
European Journal of Innovation Management – Emerald Publishing
Published: Jan 23, 2009
Keywords: Product innovation; Building services; Construction industry; Supply chain management
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