Irene Kuhmonen, Annukka Näyhä, Miisa Solaranta, Janne Keränen. (2024). Can small and medium-sized companies increase the value added from wood-based side streams? Silva Fennica vol. 58 no. 5 article id 23080. https://doi.org/10.14214/sf.23080

Keywords: circular bioeconomy; dynamic capabilities; forest-based sector; strategic niche management; sustainability transition; wood-based SMEs

Highlights: Upgrading the use of wood-based side streams is necessary for circular bioeconomy; Small and medium-sized companies offer innovative solutions for using wood-based side streams; Companies utilizing the side streams host a variety of dynamic capabilities; Strong technological orientation reduces horizontal networking among innovative small and medium-sized companies; The forest-based regime resists the spread of innovations aiming for higher value added.

Abstract | Full text in HTML | Full text in PDF | Author Info

One of the central goals of circular bioeconomy in the Finnish forest-based sector is upgrading the use of wood-based materials, especially wood-based side streams, to higher value-added products. However, despite these ambitions, most wood-based side streams are used in energy production. Within the forest-based sector, innovative solutions for higher value-added production of wood-based side streams are being developed within small and medium-sized companies (SMEs). Therefore, to promote the process of upscaling these solutions, understanding the success of these companies is pivotal. For this end, we conducted a qualitative study with 10 forest-based SMEs utilizing wood-based side streams to understand both the internal and external factors affecting their ability to scale up their business models. By applying the dynamic capabilities approach from management research and the strategic niche management approach from sociotechnical transition studies, we found that even though the companies are internally well positioned to succeed in their growth aspirations, they face barriers from the dominant forest-based regime. The studied SMEs are facing a mismatch between their own business models and the rules and operating principles of the forest-based sector based on linear economy. Overcoming these barriers and challenging the dominant structures within the Finnish forest-based regime would require joint efforts from the companies. However, the companies have a strong technological orientation, which makes them hesitant with regard to horizontal networking. They also operate in diverse markets, making it difficult for them to find common ground. As a result, the pressure for systemic transformation within the forest-based sector remains nominal.

Kuhmonen, University of Jyväskylä, School of Business and Economics, P.O. Box 35, FI-40014 University of Jyväskylä, Finland https://orcid.org/0000-0002-1407-8349 E-mail: irene.a.kuhmonen@jyu.fi
Näyhä, University of Jyväskylä, School of Business and Economics, P.O. Box 35, FI-40014 University of Jyväskylä, Finland E-mail: annukka.nayha@jyu.fi
Solaranta, University of Jyväskylä, School of Business and Economics, P.O. Box 35, FI-40014 University of Jyväskylä, Finland E-mail: miisa.solaranta@gmail.com
Keränen, VTT Technical Research Centre of Finland Ltd, P.O. Box 1603, FI-40101 Jyväskylä, Finland https://orcid.org/0000-0002-5626-2929 E-mail: janne.keranen@vtt.fi

article id 23024, category Research article

Anu Laakkonen, Katri Rusanen, Teppo Hujala, Mika Gabrielsson, Jouni Pykäläinen. (2023). Implications of the sustainability transition on the industry value creation logic – case of Finnish pulp and paper industry. Silva Fennica vol. 57 no. 3 article id 23024. https://doi.org/10.14214/sf.23024

Keywords: forest industry; business transformation; circular bioeconomy; sustainable business

Highlights: Global change drivers are inducing a sustainability transition to a circular bioeconomy; Established industries need to reconfigure their value creation logic; A document analysis investigated pulp and paper industry’s communicated value creation logic; An interdisciplinary approach helps to understand a changing business environment; Recognition of a socio-economic-technological-environmental system is needed.

Abstract | Full text in HTML | Full text in PDF | Author Info

Global economic, social and environmental change drivers have tremendous effects on the dynamic and nested business environment calling for a sustainability transition to a circular bioeconomy. The transition will pressurise established industries to alter their value creation logic to consider sustainability holistically. The study follows a case study research strategy and investigates how an established Finnish pulp and paper industry reconfigures its communicated value creation logic. The findings of a qualitative document analysis suggest that the pulp and paper industry has started to explore new sustainable path-breaking innovations and create a common development agenda, which has resulted in incremental adaptations in the value creation logic. However, the industry’s narrative of already being sustainable has hampered the reconfiguration and stabilisation of the adapted value creation logic. From a theoretical perspective, adopting an interdisciplinary and systemic perspective is necessary to understand the changing business environment. From a managerial perspective, cross-sectoral collaboration and including perspectives of different actors can help in creating a holistically sustainable value creation logic.

Laakkonen, School of Forest Sciences, Faculty of Science, Forestry and Technology, University of Eastern Finland, P.O. Box 111, FI-80101 Joensuu, Finland; Department of Forest Sciences, Faculty of Agriculture and Forestry, University of Helsinki, P.O. Box 27, 00014 University of Helsinki, Finland https://orcid.org/0000-0002-6384-7773 E-mail: anu.laakkonen@uef.fi
Rusanen, School of Forest Sciences, Faculty of Science, Forestry and Technology, University of Eastern Finland, P.O. Box 111, FI-80101 Joensuu, Finland https://orcid.org/0000-0003-1705-5561 E-mail: katri.rusanen@uef.fi
Hujala, School of Forest Sciences, Faculty of Science, Forestry and Technology, University of Eastern Finland, P.O. Box 111, FI-80101 Joensuu, Finland https://orcid.org/0000-0002-7905-7602 E-mail: teppo.hujala@uef.fi
Gabrielsson, Department of Marketing, Hanken School of Economics, P.O. Box 479, FI-00101, Helsinki, Finland; UEF Business School, Faculty of Social Sciences and Business Studies, University of Eastern Finland, P.O. Box 1627, FI-70211 Kuopio, Finland https://orcid.org/0000-0002-0633-6918 E-mail: mika.gabrielsson@uef.fi
Pykäläinen, School of Forest Sciences, Faculty of Science, Forestry and Technology, University of Eastern Finland, P.O. Box 111, FI-80101 Joensuu, Finland E-mail: jouni.pykalainen@uef.fi

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