Construction contractors integrating into facilities management

Purpose - The purpose of this paper is to analyse why certain construction contractors engage as facilities management (FM) service providers. Design/methodology/approach - Against a background of theories of vertical integration, information asymmetries and service innovation, a questionnaire survey of the 50 largest construction contractors in Sweden has been conducted. Findings - Of 44 respondents, eight were engaged in FM, and these differed by being more diversified both into a broader range of services and also upstream from traditional construction. Those engaged in FM were more innovative in general, and they tended to have employees with a high level of formal education. Research limitations/implications - The Swedish situation may differ from that in other countries. Competence-based views of service innovation are supported by patterns identified in the survey data. Practical implications - Construction contractors entering the FM supply market need to develop a competence strategy that transforms a project view into a broader understanding of support services, continuously delivered. Originality/value - This is the first study of any national market for the purpose of determining characteristics of construction contractors who integrate into FM.