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.