Industrialized house building of multi-storey residential buildings is not only gaining practical importance in Sweden but is also emphasized as a way for companies to address the demands for lower and more predictable production costs, shorter delivery times and higher product quality. However, to be competitive on the market, IHB companies need to protect and capitalize their specific investments into platforms and organizations. The engagement inplatforms and industrialized way of working, it is not just about the complexity of integration but it is also about having a capability over time to handle this market variation (i.e. dynamic capabilities). Industrialized house building has mainly been investigated from an operational view, leaving a gap in the characterization from a strategical (dynamic) view.

Purpose of this research is to increase understanding about industrialized house building, from a dynamic capability view, described the characteristics of industrialized house building through exploring and describing the evolution and development of and industrialized house building company. An in-depth, longitudinal case study approach was adopted to get and deeper understanding of the development of dynamic capabilities in an industrialized house building company. The unit of analysis was the long-term interaction between house-market development, the case company’s business development, and external collaboration activities between the years 1993 and 2018. The findings from the case study were then analyzed against a theoretical framework based on dynamic capabilities.

Industrialized house building can be characterized by a set of dynamic capabilities constructs that are evolved and developed in order to cope with the changing conditions derived from both internal and external factors, entailed in entrepreneurship and long-term thinking. The findings indicate that the organization's focus may vary between different kinds of dynamic capabilities over-time. In addition, findings indicate that development of dynamic capabilities supporting collaboration and building trust to the market was of importance at the beginning of their journey. These dynamic capabilities evolved in close relations with external partners, due to external market pressure. This study also indicates that path dependency affects the development of dynamic capability, through collaboration, trust, and learning – which influence how the company behaves and through their investments in a platform constraining future actions.