Unveiling the key drivers of transaction costs in modular integrated construction : a meta-analysis

Abstract

Despite its recognized advantages in sustainability and efficiency, the widespread adoption of Modular Integrated Construction (MiC) is impeded by transaction costs (TCs). While previous studies have cataloged numerous barriers, a systematic, quantitative synthesis of their relative impact on TCs is lacking. This study bridges this gap by conducting a hybrid systematic review and meta-analysis of 37 empirical studies (2005–2025) to identify and rank the key drivers of TCs in MiC. Grounded in Transaction Cost Economics, 32 factors were categorized into transaction attributes, the transaction environment, and stakeholder-related aspects. The meta-analysis quantified the pooled effect sizes, revealing that operational and procedural hurdles—specifically “Poor Logistics,” “Design Change,” and “Insufficient Quality Inspection Standards and Regulations”—are the most critical determinants. A key finding is the divergence between the most frequently cited barriers and those with the highest impact, underscoring the value of meta-analytic synthesis over simple frequency counts. Subgroup analyses further indicated that the severity of institutional and regulatory drivers is more pronounced in developing economies. This research provides a novel, evidence-based framework for stakeholders to develop and prioritize mitigation strategies, advocating for investments in integrated digital tools, rigorous front-end planning, and context-sensitive policy development to reduce transactional inefficiencies and promote MiC adoption.