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Managing tension between exploitation and exploration in industrialized house-building
Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Structural and Construction Engineering. Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Industrilized and sustainable construction.ORCID iD: 0000-0002-3067-9451
Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Industrilized and sustainable construction.
Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Structural and Construction Engineering. Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Industrilized and sustainable construction.
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Propose - Aim of this paper is to understand what constitutes exploitation, exploration and how the tension between exploitation and exploration is managed over-time. Dynamic capabilities provide means for companies to successfully survive in the long-run. However, these capabilities are poorly understood and less studied in house-building. Industrialized house-building often involves long-term investments and therefore provide a contemporary setting for studying dynamic capabilities empirically.

Design/method/approach - A longitudinal case study was conducted to understand how an industrialized house-building company exploits and explores, reconfigures resources over time and deals with tensions between exploitative and explorative actions.

Findings - The findings show several managerial activities to manage short-term variation and exploitation and long-term variation and exploration. The study also reveals how activities are employed to handle the tension between exploration and exploitation.

Originality/value - The results challenge the assumption that trade-offs need to be made between innovation and efficiency. In contrast to previous findings, the study shows that the case company is not constrained in terms of a combined exploitative and explorative strategy to house-building.

Keywords [en]
Industrialized house-building, Case study, Dynamic capability
National Category
Construction Management
Identifiers
URN: urn:nbn:se:ltu:diva-71477OAI: oai:DiVA.org:ltu-71477DiVA, id: diva2:1261319
Available from: 2018-11-07 Created: 2018-11-07 Last updated: 2018-11-07
In thesis
1. Understanding development of dynamic capabilities in industrialized house building: A case study
Open this publication in new window or tab >>Understanding development of dynamic capabilities in industrialized house building: A case study
2018 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

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.

Place, publisher, year, edition, pages
Luleå: Luleå University of Technology, 2018
Series
Licentiate thesis / Luleå University of Technology, ISSN 1402-1757
Keywords
Industrialized house building, Dynamic capability, Case study
National Category
Construction Management
Research subject
Construction Management and Building Technology
Identifiers
urn:nbn:se:ltu:diva-71478 (URN)978-91-7790-260-7 (ISBN)978-91-7790-261-4 (ISBN)
Presentation
2019-02-06, F231, Luleå tekniska universitet, Luleå, 09:00 (English)
Opponent
Supervisors
Available from: 2018-11-07 Created: 2018-11-07 Last updated: 2019-07-12Bibliographically approved

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Stehn, LarsEngström, Susanne

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