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Publication: Journal of Forest Products Business Research
Authors: 0
Reference ID: Volume 4, Article No. 7
Publish Year: 2007
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Title: Outsourcing of Wood-Based Component Manufacturing: Driving Forces Found in Scandinavian Companies
Description:
The purpose of this article is to describe and analyze the driving forces for outsourcing in the Scandinavian wood product manufacturing (WPM) sector. Companies in this sector are inexperienced in outsourcing of wood-based components. Historically, they have purchased raw material from a multitude of sawmills and handled component manufacturing in-house. Only recently have they
begun to consider outsourcing as part of their overall strategy.

The research design is a multiple case study approach and is based on six leading Scandinavian companies in the door, flooring, and window industries. Research has shown that these companies consider outsourcing based on the following driving forces:
1 . component cost reduction,
2. reallocation of resources to marketing and sales,
3. core competence focus,
4. operation/capacity constraints, and finally
5. financial driving forces.
Contrary to other studies, WPMfirms do not outsource to gain access to outside competence.

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