Preconditions and dynamics of logistics networks in the Dutch building industry

Argues that logistics networks in the building industry will develop in relation to transaction‐specific investments in new information technologies such as EDI and PDI. This is particularly the case where strategic considerations play a subordinate role and efficiency arguments are stressed. The limitations of the transaction cost approach are also discussed. In the building industry, logistics networks are not only directed towards a minimisation of transaction costs, but are also striving for joint value maximisation. Co‐operation between designing and constructing parties makes it possible to present a “total product” to the market. Opportunistic behaviour is replaced by mutual trust. Instead of bounded rationality, know‐how is transferred between firms for product development. This change will fundamentally alter the nature of competition in the building industry in the near future.