AbstractConstruction industrialization (CI) has dramatically altered how architecture, engineering, and construction (AEC) companies design, manufacture, build, operate, and manage. Despite its growing relevance in both academia and companies in the last decades, the CI field has, however, been considered unclear, fragmented, and with a high level of misunderstandings. To address this knowledge gap through a systematic literature review, this paper provides a holistic and comprehensive conceptualization of the phenomenon and its theoretical basis for the global engineering and construction management community. In total, 102 articles from the last 11 years (2010–2021) from the Scopus and Web of Science databases were collected and analyzed. So, one primary contribution of this paper is the establishment of a definition for the CI concept. Another important contribution is the definition of a conceptual framework that introduces industrialization as a new way of operating the business, where five major dimensions, namely strategy, organization, business processes, supply chain planning, and resources, need to be aligned and managed simultaneously for competitive advantage. Furthermore, 10 design principles, five influencing factors, and 19 initiatives are presented to provide an integrated and holistic view of the concept. This article gives businesses a better knowledge of what industrialization in the construction industry actually means, enabling them to move forward with this transformation. Finally, the research provides a basis for improving future contributions in CI and adjacent management disciplines.Practical ApplicationsCI has emerged as a dramatic change in the way construction companies operate. However, there is still much of uncertainty about what this transformation really means and what it encompasses. These are the main questions that, through a systematic literature review, this paper seeks to answer. As a first contribution, this paper presents a definition of CI. Furthermore, the paper also reinforces that industrialization is a new way of managing and producing where five major dimensions have to be handled simultaneously to achieve competitive advantage: strategy, organization, business processes, supply chain planning, and resources. Along with this contextualization, 10 design principles, five influencing factors, and 19 initiatives are also presented in a framework that assists in defining and representing the phenomenon. This article enables companies to take a step forward in this transformation by providing a greater understanding of what industrialization actually means in the construction sector. The contributions of this research are also targeted to managers and researchers with expertise in the fields of industrial engineering and management who want to contribute to bridge the gap between construction and management. Finally, this article also provides new guidelines for further contributions in the field of CI research.