Building a new supply chain position: an exploratory study of companies in the timber housing industry

Abstract

Innovation is an important source of growth for many companies. It is also challenging, as it may require that the companies build a new position in the supply chain. The literature is devoid of analysis of different ways to build such positions in the construction industry. The purpose here is to explore the challenges involved in implementing innovations that require companies to establish new positions in a construction supply chain. Three in‐depth case studies in the Swedish timber housing industry illustrate different challenges that arise with the different modes of repositioning of organic growth, collaboration and acquisition, and with moving either backward or forward in the supply chain. Organic growth is a slow process that prevents companies from taking a first‐mover advantage. Acquisitions can involve difficulties with exploiting acquired competences. Collaboration brings the risks of diversity of interests and transient solutions. Furthermore, and as shown in the cases studied, challenges are associated with pre‐existing competencies and relationships, with technology‐oriented companies facing customer‐related difficulties and market‐oriented companies mainly facing ones involving technological solutions. The construction industry’s idiosyncrasies amplify these challenges, as its fragmentation makes it difficult to connect with external companies at new positions. Stronger ties with business partners are likely to enable construction companies to exploit more easily innovations that require repositioning in the supply chain.Innovation, supply chain management, case study, Sweden,

Internal and external factors of competitiveness shaping the future of wooden multistory construction in Finland and Sweden

“…In the construction sector, the uptake of new building solutions has been found to be challenging despite their perceived benefits (e.g., Carter 1967, Holt 2013. Traditions and patterns of behavior in the construction sector operations are also key factors likely to affect WMC market diffusion (Nordin et al 2010). In a recent study by Matinaro and Liu (2017), traditional organizational culture was found to be a key aspect hindering innovativeness and sustainability in the Finnish construction sector.…”

“…Increasing the share of WMC is hindered by the strong path dependencies of concrete building networks Gustavsson 2008, Hemström et al 2017). Furthermore, Nordin et al (2010) concluded that re-structuring WMC business networks could partly solve the issue of a narrow WMC niche. According to Nordin et al (2010), re-structuring comprises changing both internal (e.g.…”

“…Furthermore, Nordin et al (2010) concluded that re-structuring WMC business networks could partly solve the issue of a narrow WMC niche. According to Nordin et al (2010), re-structuring comprises changing both internal (e.g. more collaboration with suppliers, on-site contractors and engineered wood product manufacturers to develop off-site construction methods) and external factors (e.g.…”

Collaboration and shared logic for creating value-added in three Finnish wooden multi-storey building projects

“…According to Nordin et al (2010), re-structuring and intensifying of business cooperation is needed to break free from a niche level of WMC. This would essentially comprise changing both internal (e.g.…”

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“…In the general description of business models, one key aspect is the border between activities of the company and those of external parties. Research has here referred to how business models may be open or include border-spanning activities (Vanhaverbeke & Chesbrough, 2014), thus emphasizing the business model's connection to supply-chain decisions (Lambert et al, 1998;Nordin et al, 2010) in how the business model includes make-or-buy decisions related to core and strategic competences of the firm.…”