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Business models in industrialized building of multi-storey houses

Author

Listed:
  • Staffan Brege
  • Lars Stehn
  • Tomas Nord

Abstract

The business model construct has been widely used during the last decade, partly because of its potential to provide a holistic view of how companies do business. A test of how prefabrication could form the basis of a construction firm's business model can lead to an understanding of the potential for the competitiveness and profitability of industrialized building. The aim is to adapt a general business model construct and use it to empirically identify the most frequently used and the most viable business model. The theoretical perspective is employed to examine how a company does business and which activities and resources are mobilized through the distinction between strategic and operational effectiveness. The multiple case studies include five major Swedish companies that produce prefabricated timber building systems and the analysis is grounded in pattern-finding. The business model construct includes: market position, offering, and operational platform. The result indicates five business model elements: prefabrication mode, role in the building process, end-user segments, system augmentation and complementary resources. Applying this construct to the five case companies revealed that one out of seven models was found to be viable in terms of both 'market share' and decision-makers' opinions. One important conclusion is to take the prefabrication mode as the starting point for business model design and then adapt the other elements to a good fit.

Suggested Citation

  • Staffan Brege & Lars Stehn & Tomas Nord, 2014. "Business models in industrialized building of multi-storey houses," Construction Management and Economics, Taylor & Francis Journals, vol. 32(1-2), pages 208-226, February.
  • Handle: RePEc:taf:conmgt:v:32:y:2014:i:1-2:p:208-226
    DOI: 10.1080/01446193.2013.840734
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    Citations

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    Cited by:

    1. Hurmekoski, Elias & Jonsson, Ragnar & Nord, Tomas, 2015. "Context, drivers, and future potential for wood-frame multi-story construction in Europe," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 181-196.
    2. Toivonen, Ritva & Lilja, Anna & Vihemäki, Heini & Toppinen, Anne, 2021. "Future export markets of industrial wood construction – A qualitative backcasting study," Forest Policy and Economics, Elsevier, vol. 128(C).
    3. Toppinen, Anne & Röhr, Axel & Pätäri, Satu & Lähtinen, Katja & Toivonen, Ritva, 2018. "The future of wooden multistory construction in the forest bioeconomy – A Delphi study from Finland and Sweden," Journal of Forest Economics, Elsevier, vol. 31(C), pages 3-10.
    4. Andersson Niclas & Lessing Jerker, 2020. "Industrialization of construction: Implications on standards, business models and project orientation," Organization, Technology and Management in Construction, Sciendo, vol. 12(1), pages 2109-2116, January.
    5. Ewa Leszczyszyn & Henrik Heräjärvi & Erkki Verkasalo & Javier Garcia-Jaca & Gerardo Araya-Letelier & Jean-Denis Lanvin & Gabriela Bidzińska & Dobrochna Augustyniak-Wysocka & Uwe Kies & Alex Calvillo &, 2022. "The Future of Wood Construction: Opportunities and Barriers Based on Surveys in Europe and Chile," Sustainability, MDPI, vol. 14(7), pages 1-29, April.
    6. Al-Hussein M. H. Al-Aidrous & Nasir Shafiq & Yasser Yahya Al-Ashmori & Al-Baraa Abdulrahman Al-Mekhlafi & Abdullah O. Baarimah, 2022. "Essential Factors Enhancing Industrialized Building Implementation in Malaysian Residential Projects," Sustainability, MDPI, vol. 14(18), pages 1-18, September.

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