Modeling Intra-Organization Fragmentation and Integration to Enhance Performance in Industrialized Timber Construction

Abstract

Industrialized construction faces persistent fragmentation challenges that negatively impact project performance. Although there is consensus on the importance of integration, its effective adoption in industrialized construction, particularly for modular timber building companies, remains underexplored. This study examines how intra-organization fragmentation and stakeholder integration influence project performance through a combined empirical case study and theoretical simulation analysis. This study adopted a computational modeling strategy based on the Virtual Design Team (VDT) approach to simulate the organizational structure and process in a real-world industrialized timber building company. The VDT’s baseline results reveal significant rework from inadequate early integration among specialties and functional departments, increasing the project schedule. A revised scenario introduces horizontal and vertical integration by co-locating design and manufacturing team members and reducing the decision-making level. These adjustments substantially reduced rework in design phases and shortened the project duration below the original plan. The critical role of early collaborative involvement of all disciplines emphasizes that integrated organizational structures and processes are essential for ensuring reliable project outcomes in industrialized timber building companies. This research provides empirically grounded insights highlighting the strategic importance of integration in industrialized construction and establishes a validated modeling basis to guide practical interventions and future research on integration-driven improvements. © 2025 by the authors.