The role of board interlocks in increasing the use of wood in Norwegian construction

Abstract

This paper studies the existence of board interlocks between wood-based firms in the Norwegian construction supply chain and firms in other industries, and their role in enabling increased use of wood in construction. Wood-based construction remains a niche market globally. The literature highlights two main barriers to wood-based construction: 1) lack of expertise with the material, and 2) lack of coordination and collaboration across the supply chain. As a form of interfirm governance structure, board interlocks may promote innovation in construction, such as applying new materials, products and processes, by fostering strategic collaborations. Drawing on resource dependence theory (RDT) and the theory of dynamic capabilities, we explore this through analysis of registry data, interviews and case studies. It was found that the majority of wood-based firms have board interlocks and that a majority of the firms they are interlocked with belong to industries within the construction supply chain. It was also found that the role of these board interlocks is primarily to secure access to immaterial resources, such as knowledge, expertise and skills, which enables the wood-based firms to engage in processes (sensing, seizing, and reconfiguration) that are important for their dynamic capabilities and therefore closely related to their ability to innovate.