Stable relationality and dynamic innovation: two models of collaboration in SME-driven offsite manufacturing supply chains in housing construction

Purpose: The study analyses collaborative practice in offsite manufacturing (OSM) housing supply chains, focusing specifically on supply chains driven by small and medium enterprises (SMEs). The study’s analysis builds on previous work where we argued that collaboration in OSM housing construction comprises nine elements. In this study, the authors demonstrate empirically that SMEs enact these collaborative practice elements in distinct ways, foregrounding key elements over others. One core model and two sub-models of collaboration emerge from our two case studies. Design/methodology/approach: The study analyses two SME-driven supply chains using qualitative case study techniques. Data were gathered through 12 semi-structured interviews conducted in two housing construction supply chains: one in South Australia, Australia, and another in Tasmania, Australia. Findings: A comparative case study of SMEs shows that collaboration in OSM supply chains has a number of common elements, including a champion for innovation, investment in long-term relationships, resourceful use of limited assets and physical co-location. However, SMEs can also enact these elements through a range of diverging collaborative strategies that can be distilled into different models: stable relationality and dynamic innovation. Originality/value: Findings provide a compelling empirical basis for arguing that SMEs can successfully lead OSM supply chains if key collaborative practice elements are strategically mobilised in ways that are suited to their strengths and limitations. The study therefore interrogates the widely held and often limiting assumption that OSM can only be driven by large organisations with access to capital assets, capacity to invest and undisputed bargaining power.