Supply Chain Integration in the Swedish Wooden House industry

• Main Authors: Odehammar, Max, Bui, Ahn Thai
• Format: Others
• Language: English
• Published: Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Företagsekonomi 2018
• Subjects: Supply Chain Integration; Supply Chain Management; Supply Chain; Wooden houses; Construction; Integration drivers; Integration barriers; Sweden; Business Administration; Företagsekonomi
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-40442

Supply Chain Integration (SCI) has been found by previous research to be correlated withincreased business performance. However, the rate of implementation of the concept isdependent on the industry, implying that this is determined by industry-specific factors. Thepurpose of this study was therefore to investigate how the Swedish wooden house industryapproaches SCI, and thereby identify industry-specific factors that influence integration. Toaccomplish this, an exploratory multiple case study was conducted, in which Swedish woodenhouse manufacturers and associated actors were interviewed. The study confirmed that thewooden house industry is affected by factors limiting SCI implementation, and that companiesin the industry are not integrated to any significant degree. Further, two industry-specificfactors were discovered to be inhibiting integration. First, the degree of product customizationgranted to customers by house manufacturers determines how much control over procurementdecisions is retained, and thereby potential for integration with suppliers. Customer orientationwas found to inhibit SCI in the wooden house industry due to its effect on productcustomization, in spite of previous literature classifying it as a driver. Secondly, thefragmentation of the contractor market was found to force house manufacturers to deal with amultitude of small actors to perform the on-site construction function, limiting investments inrelationships for any one given actor. The study also found that levels of internal integrationwas generally not at a level at which the benefits of SCI can be fully realized.