Perspectives and Success Factors for Small Firms of the Finnish Builders’ Carpentry Industry
The article presents the state of the art and perspectives of the Finnish builders’ carpentry Industry and the role of the small firms. It is identified that firms producing prefabricated components to BtoC markets do not supply their products to BtoB markets and vice versa. Domestic markets of single dwelling house construction have been growing during the recent years. There is a large demand potential opening up by the replacment of concrete by wood in the frame construction for multi storey dwelling buildings. The competitive structure of the industry as one determinant of business performance is evaluated with respect to suppliers (supply chain), entrants (entry barriers), buyers, rivals and substitutes. Despite of high cost, differentiation is used by firms in the industry as the major competitive strategy. Lack of knowledge and skills in strategic management, low innovativeness and low marketing competencies are common. Exports do not show any positive impact on business performance. Human capital rather than technology is a strategic but scarce resource. Subcontracting is common but partnerships in production and procurement are rare. There is large variation in the degree of process integration. Differentiation strategy, i.e. broadening competitive scope, implies flexible manufacturing systems with sufficient manufacturing capacity and a sufficient number of product variants. Small firms encounter restrictions with respect to the endowment of human and financial capital. At the end the article presents some factors of success for small firms in the Finnish builders’ carpentry industry. Differentiation strategy hardly does provide a competitive advantage for small firms without extended networking. Business networking can allow small firms to compensate scale disadvantages when focusing into narrow demand segments. The preconditions for small firms to enter a BtoB partnership with a construction company are process automation and exploitation of IT-technologies, integrated information management and the implementation of an open construction system.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): (2005)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: |
Phone: (+359 2) 810 40 18
Fax: (+359 2) 988 21 08
Web page: http://www.iki.bas.bg
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Caves, R E & Porter, M E, 1977. "From Entry Barriers to Mobility Barriers: Conjectural Decisions and Contrived Deterrence to New Competition," The Quarterly Journal of Economics, MIT Press, vol. 91(2), pages 241-61, May.
When requesting a correction, please mention this item's handle: RePEc:bas:econst:y:2005:i:1:p:37-54. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diana Dimitrova)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.