This exploratory study outlines the business strategy that are being applied by small and medium-size enterprises (SME) construction companies in adopting Industrialised Building System (IBS) in Malaysia. Case study was employed as the research method in order to achieve the research objective as it can be used to explore and give further understanding of the research issues. Cross-case synthesis and pattern matching technique were applied for the analysis of the case study. Through the study, it was found that the SME construction companies could participate in the IBS business. The companies need to have capital and knowledge in IBS, position themselves as a total IBS solution provider to clients, target projects with large volumes of building components, employ a small number of fulltime employees as well as to have in-house capability and to outsource some facilities in the business operation. In conclusion, the involvement of SME construction companies in the IBS market is important to avoid the monopoly of IBS components supplies among the large companies and to potentially reduce the price of IBS so that it becomes more affordable to be used in the construction projects.
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