Atte Koskivaara, Katja Lähtinen, Anne Toppinen. (2025). Longitudinal analysis of financial performance of sawmills and wood construction element producers in Finland. Silva Fennica vol. 59 no. 2 article id 24033. https://doi.org/10.14214/sf.24033

Keywords: wood construction; competitiveness; profitability; business; financial analysis; innovation; value-added

Highlights: Wood element producers show more variation in profitability measures during 2012–2021 than sawmills; Element producers’ financial stability shows a decreasing trend in comparison to slight growth in the case of sawmills; Value-added has a positive effect on both sectors competitiveness whereas cost items have negative effects; Investments have a positive effect on element producers’ solvency and negative on sawmills.

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The global outlook for wood construction is positive, driven by bio- and circular economy programs promoting wood use in construction. The industrialization of building processes is also seen as essential for improving construction efficiency and competitiveness. However, despite this positive outlook, wood construction in Finland remains a niche that has yet to reach its full potential. To reduce the dependency between the concrete and construction sectors, the wood element value chain needs competitive businesses to foster innovations and capture a larger market share in this highly competitive industry. However, the performance of two important stages of the value chain, sawmilling and wood element manufacturing, has not been measured in the scientific literature. The competitiveness of Finnish sawmills and wood element producers were analyzed by studying the industry’s financial performance using firm-level panel data and a regression approach over the 2012–2021 period. The results suggest higher variation across element producers’ profitability, while sawmills are more homogenous. Both value chain stages show signs of typical manufacturing industries, as materials and salaries proved to have a relatively high negative impact on competitiveness. However, differences were also found especially regarding short-term solvency and liquidity trends and average levels of costs and value-added. To understand competitiveness in the wood construction sector, an insight into intra- and inter-industry dynamics and value chain positioning is therefore required. Financially viable sawmilling and wood element firms are essential not only for business survival but for transforming the construction industry’s logic.

Koskivaara, Natural Resources Institute Finland (Luke), Bioeconomy and environment, Latokartanonkaari 9, 00790 Helsinki, Finland https://orcid.org/0000-0001-7454-0470 E-mail: atte.koskivaara@luke.fi
Lähtinen, Natural Resources Institute Finland (Luke), Bioeconomy and environment, Latokartanonkaari 9, 00790 Helsinki, Finland https://orcid.org/0000-0001-6260-5062 E-mail: katja.lahtinen@luke.fi
Toppinen, University of Helsinki, Faculty of Agriculture and Forestry, Latokartanonkaari 7, 00014 Helsingin yliopisto, Finland https://orcid.org/0000-0003-0910-1505 E-mail: anne.toppinen@helsinki.fi

article id 110, category Research article

Erlend Nybakk, Pablo Crespell, Eric Hansen. (2011). Climate for innovation and innovation strategy as drivers for success in the wood industry: moderation effects of firm size, industry sector, and country of operation. Silva Fennica vol. 45 no. 3 article id 110. https://doi.org/10.14214/sf.110

Keywords: comparative management; innovations; organisational culture; strategy; wood industry; working climate

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This study examines the relationships between firm financial performance and a) the climate for innovation and b) innovation strategy in the wood products industry. The focus is on the moderator effects of firm size, country of operation, and industry sector. Using a sample of 460 responses from chief executive officers and top managers of Norwegian and US firms, we conducted a regression analysis to probe for interaction effects. The sample included primary and secondary manufacturers of various sizes. Consistent with previous studies, we found a positive impact for both a climate for innovation and an innovation strategy on firm performance. In terms of moderation, only one interaction was found to be significant, representing a moderator effect of industry size on the climate-performance relationship. Further testing showed that secondary, large manufacturers exhibited a weaker, yet still positive, relationship between climate for innovation and performance. This low level of significant interactions suggests stability of the relationship among the main factors depicted in the model, with important implications for managers and future research. These findings indicate that a positive climate for innovation and a management committed to innovation through an innovation strategy have a positive effect on the bottom line of wood products firms. This effect holds true regardless of industry, size, or country, so most firms can benefit from the implementation of these pro-innovation practices.

Nybakk, Norwegian Forest and Landscape Institute, P.O. Box 115, N-1431 Ås, Norway E-mail: nye@skogoglandskap.no
Crespell, FPInnovations (Forintek Division), Vancouver, BC, Canada E-mail: pc@nn.fi
Hansen, Oregon State University, College of Forestry, OR, USA E-mail: eh@nn.us

article id 239, category Research article

Matti Stendahl, Anders Roos. (2008). Antecedents and barriers to product innovation – a comparison between innovating and non-innovating strategic business units in the wood industry. Silva Fennica vol. 42 no. 4 article id 239. https://doi.org/10.14214/sf.239

Keywords: product development; obstacles for innovation; innovation strategy; organization

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Increased competitive pressure from low-cost economies and substituting materials has raised the need for new strategies focusing on product differentiation in the Nordic wood industry. With the aim to identify factors that can facilitate increased product innovation activity, this study compared organizational characteristics and perceived barriers to product development among innovating and non-innovating strategic business units (SBUs) in the Swedish and Finnish wood industry. Multivariate analysis of data from a cross-sectional sample of 110 SBUs suggested that organizational size and educational level among white-collar workers are significant antecedents of product innovation activity. Furthermore, the difficulty of giving practical priority to development work in the everyday stress was identified as the most important perceived barrier to product development among managers in both innovating and non-innovating SBUs. A low competence level among the personnel and a low need to innovate was perceived to be the second most important barriers to product development among managers in, respectively, innovating and non-innovating SBUs. Practitioners who wish to increase product innovation activity in the wood industry are advised to promote an increased educational level in wood industry companies. They are further encouraged to seek ways to reduce the perceived barriers to product innovation identified in this study.

Stendahl, Swedish University of Agricultural Sciences, Department of Forest Products, P.O. Box 7008, SE-750 07 Uppsala, Sweden E-mail: matti.stendahl@sprod.slu.se
Roos, Swedish University of Agricultural Sciences, Department of Forest Products, P.O. Box 7008, SE-750 07 Uppsala, Sweden E-mail: ar@nn.se

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