Overcoming Path Dependency in an Industrialised House-Building Company through Entrepreneurial Orientation

Document identifier: oai:DiVA.org:ltu-78027
Access full text here:10.3390/buildings10030045
Keyword: Engineering and Technology, Civil Engineering, Construction Management, Teknik och teknologier, Samhällsbyggnadsteknik, Byggproduktion, Industrialised house building, Construction, Path dependency, Entrepreneurial orientation, Longitudinal case study, Byggproduktion och teknik, Construction Management and Building Technology
Publication year: 2020
Relevant Sustainable Development Goals (SDGs):
SDG 9 Industry, innovation and infrastructure
The SDG label(s) above have been assigned by OSDG.ai


Although it is well-established that industrialised construction can improve construction companies’ productivity, the uptake of industrialised ways of working has been slow and traditional construction companies remain unwilling to move towards industrialisation. One key reason is that there is little understanding of how construction companies can overcome path dependency (PD). Drawing on a longitudinal case study looking at an industrialised house-building (IHB) company, this work investigates how entrepreneurial orientation (EO) has influenced the development of a construction company that was able to transform from a traditional construction company to an IHB company over 25 years and to overcome PD in the process. The study found that by focusing on a niche market segment, developing a platform in collaboration with external actors, and an entrepreneurial mindset supported the company in overcoming its PD. However, being the “first-mover” in the industry created new path dependencies that may hinder other companies from entering this specific niche market area and the development of the industry as a whole. This study contributes to the theoretical buildup of EO, PD and strategic orientations of IHB companies, and contributes to practitioners’ understanding of IHB companies from a strategic management contingency perspective.


Petri Uusitalo

Luleå tekniska universitet; Industriellt och hållbart byggande
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Rita Lavikka

Smart Energy and Built Environment, VTT Technical Research Centre of Finland
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