Main Features of the Timber Structure Building Industry Business Models

Abstract

The use of timber as structural building material is growing and a greater number of firms are looking to enter this raising market. Erecting a complex timber building usually involves combining the work of architects, structural engineers, builders, suppliers and/or supplier–builders, all of them having their own business models. The purpose of this research was to uncover the specific nature of business models in the timber structure building industry. First, a thorough mapping of these business models was undertaken. Second, underlying patterns were uncovered within these models. A triangulation method of secondary data, semi-structured interviews and participant observation was used to allow for an in-depth study of 23 stakeholder business models. The analysis shows that knowledge sharing appears as crucial and may be achieved through sustained collaboration. As a result, collaborative contract procurement modes seem to be the most appropriate for timber construction. Tight relationships with suppliers and supplier–builders also appear as prerequisites. Furthermore, stakeholder partnerships with universities appear common in the field, while prefabrication is increasing in popularity. These findings can be useful to grasp the prevailing business models in this industry given the sustained growth of the timber structure building market.

Wooden Extra Stories in Concrete Block of Flats in Finland as an Ecologically Sensitive Engineering Solution

“…Prefabricated timber frame offers lightweight and customizable solutions with multiple thermal insulation options to meet specific design needs [35,[60][61][62]. Prefabrication is highly efficient [63], high quality [64], and low cost [65], contributing to more than 50% minimization of construction waste and 70% wood formwork savings [66][67][68][69][70], compared to traditional construction methods.…”

Wooden Additional Floors in Old Apartment Buildings: Perspectives of Housing and Real Estate Companies from Finland

“…Prefabricated wooden frame solutions are lightweight, the degree of thermal insulation can be selected freely, and their dimensions can be altered-the adaptation of individual elements can also be designed and constructed to meet specific needs [25,[43][44][45]. As a part of the prefabrication process, facade components-windows, doors, and cladding-can be integrated into the units and interior cladding of prefabricated units can be made if desired [45,46].…”

“…Prefabricated wooden frame solutions are lightweight, the degree of thermal insulation can be selected freely, and their dimensions can be altered-the adaptation of individual elements can also be designed and constructed to meet specific needs [25,[43][44][45]. As a part of the prefabrication process, facade components-windows, doors, and cladding-can be integrated into the units and interior cladding of prefabricated units can be made if desired [45,46]. The use of prefabricated wooden elements in the construction of additional floors accelerates the construction phase, while at the same time increasing the carbon storage capacity of already-built residential areas and supporting the quest for a sustainable built environment by building from renewable and low-emission materials.…”

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“…In order to eliminate environmental constraints, construction companies adopt business model innovation to maintain a sustainable competitive advantage in a dynamic environment. The categories range from business models themed on industrial parks, cultural tourism real estate, recreation centers, and TOD models to circular economy business models ( Lee et al, 2016 , 2017 ; Heesbeen and Prieto, 2020 ; Das et al, 2021 ; Gosselin et al, 2021 ). This paper argues that in a dynamic environment, companies adopt different strategic orientations to form a sustainable competitive advantage for the company ( Spanjol et al, 2012 ; Cheng and Sheu, 2017 ; Han and Zhang, 2021 ).…”