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.