Economic deals in the construction industry: Implications for socio-material interaction and monetary processes
2016 (English)In: The IMP Journal, ISSN 2059-1403, E-ISSN 0809-7259, Vol. 10, no 3, 364-389 p.Article in journal (Refereed) Published
Purpose - The purpose of this paper is to investigate the relationship between social-material interaction and the monetary aspects of business relationships in the construction industry. The authors term the formal financial agreements necessary for such activities "deals", and this paper seeks to open a research avenue to further investigate the multifaceted interaction processes among business actors. The construction industry is a suitable empirical setting for this purpose; its project-based character and societal position of linking business with the construction of essential community infrastructure imply that different types of money-handling activities need to be managed continuously with both short-term and long-term effects taken into account. Design/methodology/approach - To investigate the deals, i.e., the interface between socio-material interaction and the money-handling processes in the construction industry, as well as studying the potential interrelatedness of deals, the authors performed a case study involving three interrelated housing projects in Uppsala, Sweden. Findings - The study shows that deals do not only have an intricate relationship to the social-material interaction processes among construction actors, but they also become interrelated in specific ways to form "deal structures" as actors engage in different business relationships over time. This means, for instance, that a single deal can enable several other deals, and involved actors have different abilities in performing deals. Hence, most deals are part of a "broader" interaction pattern of social and material resources spanning the organizational borders of individual companies. Originality/value - Within the industrial marketing and purchasing, the socio-material interaction among actors has been well studied, but less attention has been paid to the monetary dimension and its relationship to the socio-material interaction processes. In particular, this study provides an understanding of monetary agreements in the construction industry.
Place, publisher, year, edition, pages
2016. Vol. 10, no 3, 364-389 p.
Planning, Infrastructure, Construction industry, Business relationships, Deals, Financial agreements
Economics and Business Engineering and Technology
IdentifiersURN: urn:nbn:se:uu:diva-311153DOI: 10.1108/IMP-08-2015-0047ISI: 000388976600002OAI: oai:DiVA.org:uu-311153DiVA: diva2:1058889