Unlocking the Growth of Prefabricated Construction in China: Policy–Market Synergy as a Strategic Lever

Yongjun Weng; Kenneth Paul  Charman; Reaksmey Vann

doi:10.63029/xjq49j12

Authors

Yongjun Weng PSB Paris Business School Author
Kenneth Paul Charman CamEd Business School Author
Reaksmey Vann CamEd Business School Author

DOI:

https://doi.org/10.63029/xjq49j12

Keywords:

Prefabricated construction, Policy–market synergy, Institutional theory, Modular construction, innovation adoption, Green building, Institutional complementarity

Abstract

This study investigates the interplay between policy instruments and market dynamics in shaping the development and perceived effectiveness of prefabricated construction (PC) in China. While extensive top-down policy support exists, adoption remains fragmented due to cost barriers, technological challenges, and uneven market demand. The study aims to conceptualize and empirically test how policy-market synergy, the alignment between formal government support and informal market responsiveness, acts as a strategic lever for industry development. A mixed methods approach was employed comprising a qualitative case study and a structural equation modelling (SEM) based on a survey of 246 PC firms in China. The results confirm that both policy support and market awareness have significant direct effects on firms' expectations.

Author Biographies

Yongjun Weng, PSB Paris Business School

Yongjun Weng is a DBA candidate at PSB Paris School of Business and is Chairman of Guangzhou Zhuyi Space Decoration Design Engineering Co., Ltd. His firm holds Grade A qualification in architec‐ tural decoration design and Grade B in curtain wall design, as well as first‐class contracting for building decoration and fit‐out. Additional qualifications include second‐class contracting for fire facilities, curtain wall engineering, general construction, municipal public works, ancient architecture, mechanical electrical installation, steel structure, and urban landscaping. The company is certified to ISO 9001 (quality), ISO 14001 (environment), and OHSAS 18001 (occupational health safety).
Kenneth Paul Charman, CamEd Business School

Kenneth Paul Charman is a professor of strategy at CamEd Business School in Phnom Penh, Cambodia, where he has been based since 2018. Prior to this he taught for over a decade in Kazakhstan, where he was instrumental in establishing Central Asia’s first international business school. He has managed several development projects. for the multinational donor organizations, including many projects for the EU EuropeAid. He has an MBA and a doctorate in international business from London Business School, and he was appointed as a Visiting Research Fellow at the Royal Institution of Great Britain and Northern Ireland in 2012. His current research interests focus on creating shared value, ESG, joint ventures, and public enterprises, and now focuses on developing case studies for teaching and research.
Reaksmey Vann, CamEd Business School

Vann Reaksmey is a member of Institute of Public Accountant in Australia and Affiliate member of Kampuchea Institute of CPAs and Auditors. He graduated in Master of Finance from National University of Management, he also received Certificate of Tax Agent Customs from National Tax School. He was appointed as Senior Course Advisor at CamEd Business School. He also tutoring Tax course. He has over 10 years of experience in teaching accounting and tax, business training needs assessment, design of business training curriculum and training program on business management and business consultation in Cambodia.

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