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

Abstract

Increasing societal interest towards sustainable and low-carbon materials contributes to demand for wood-based materials and modern solutions for urban construction. Wooden multi-storey construction (WMC), however, is a relatively new phenomenon in the construction business, and collaborative business models in projects that adopt such novel building techniques are yet to develop. Shared logic is a key concept shaping the development of well-functioning business ecosystems, even though actor priorities may vary between the WMC business ecosystem members. This study examines the applicability of business ecosystem concept based on actor perception involved in three Finnish WMC projects. The results suggest that elements from the business ecosystem thinking can be identified in all the cases. Moreover, network collaboration created benefits to the ecosystem, such as reference value and new insights from research and development. For some companies, engagement in the business ecosystem created financial and employment benefits, while some interviewees perceived these projects also to create immaterial value, such as awareness on sustainability issues in their business, marketing gains, or in the form of mutual learning effects.

Main Features of the Timber Structure Building Industry Business Models

“…This promotes a very strong collaborative environment within the timber construction value chain even among potential competitors. This was also noted by Toppinen et al [91]. Many interviewees mentioned their interest in working for the development of the industry and not only their own business.…”

Collaborative Interorganizational Relationships in a Project-Based Industry

“…An example is the so-called "contingent collaboration", which implies flexibility in helping other partners, information and knowledge sharing, assistance in dispute resolution, and averting issues [50]. This kind of collaboration was also noted in case studies conducted by Toppinen et al [51].…”

“…Such techniques could be used e.g., to assess the risk coming from cases where companies work together; • It was noticed that emerging branches of the construction industry, such as prefabricated wood construction, did not receive much recognition. According to Toppinen et al [51], assessing the role of the socio-political environment in promoting the use of wood in construction projects is needed. In that regard, collaborative IORs can help implement new concepts, i.e., novel wood structures in a sector as conservative as the construction industry [13]; • There is a lack of studies on performance measurement of construction joint ventures, especially the aspects of sustainability and evolutionary contexts.…”

“…Such barriers are: uncertainty seen as a risk not as an opportunity [48]; focusing on tasks while ignoring interactions between people [48]; lack of social bonding [31]; relationship prioritization not as expected [59]; and non-resilience to change [60]. The organizational category is next in the list and comprises: non-aligned objectives [51]; lack of customer participation [48]; multiple and contradictory interpretations of the problem [48]; and imbalance between contribution and dependency [56]. Industry-related barriers came in third place.…”

“…These comprise the following elements extracted from the literature: increased technical complexity [61]; bureaucratic public client organization [38]; standardized contracts [58]; and interdependencies [62]. The last category of barriers refers to the use of resources and consists of: financial security [38]; risky nature/risk liability (of the partnering process) [63]; availability of resources [38]; and partnering process as time consuming and resource intensive [51].…”