Integrated production of semi-finished components in sawmills,part I: External interactions

Abstract

In a changing business landscape, where globalization and new customer requirements create new business opportunities, some Swedish sawmills have taken over the production of components from their industrial customers. In light of the emerging network-centric perspective on business, sawmill managers' perceptions about component customers' operational requirements, customer interaction processes, and their sawmills' offerings are researched and discussed in this article. A multiple case study design, based on face-to-face interviews with Swedish sawmill managers and on various forms of secondary data, produced comprehensive information about sawmills' interaction processes with component purchasing customers. Thematic data coding facilitated the assessment of the research information in relation to the conceptual and empirical findings of previous research. The findings of the study indicate that more process orientation in housing-, joinery-, and furniture-manufacturing implies an opportunity for sawmills to make service-based offerings including not only physical goods, but also administrative services, logistics, and expert advice. The results of the study confirm the network-centric perspective on business where value is created through the interaction between firms. However, noteworthy barriers in the form of process-, culture-, as well as socially related factors at customer firms must be considered.