This paper examines modular construction as a strategic opportunity for small and medium-sized enterprises (SMEs) in the German construction sector. Facing cost pressure, capacity shortages, and complexity challenges, SMEs often struggle to adopt industrialized offsite production despite its potential benefits. Through systematic literature analysis and synthesis of recent European empirical evidence, this study develops a consolidated framework linking modular construction principles with SME-relevant implementation strategies across product design, production organization, digital coordination, and governance. The paper identifies key value creation mechanisms including scalable product platforms, reduced rework, improved throughput, and predictable resource planning. It provides practical guidance for SME decision-makers on feasible adoption pathways, typical pitfalls, and success factors, arguing that modular construction—when approached as systematic organizational transformation—offers a viable route to competitive advantage in markets characterized by labor shortages and rising complexity.
M.Sc. Raoul Dennert (Fri,) studied this question.