Katri Rusanen, Teppo Hujala, Jouni Pykäläinen. (2026). “We are already in the frontline” – Sustainable value creation and entrepreneurial orientation in forest-based small and medium-sized enterprises. Silva Fennica vol. 60 no. 1 article id 25001. https://doi.org/10.14214/sf.25001

Keywords: forest-based sector; sustainability transition; sustainable business model; sustainable entrepreneurship; value creation

Highlights: Sustainability transitions call for new types of businesses and value creation; Sustainability-oriented forest-based SMEs providing various services were studied; Operating environment and entrepreneurial orientation of companies shape how sustainable value is created with and for stakeholders; There is resistance from the operating environment towards sustainability-oriented businesses; System-level changes and sustainability-oriented entrepreneurship are interconnected and support each other.

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Sustainability challenges such as climate change and biodiversity loss have a great impact on the operating environment of companies. Business actors have increasingly sought answers to these challenges. A range of innovations, technologies and business models have been developed. Little is however known about those companies and entrepreneurs that strive for solving sustainability challenges. Sustainability-oriented entrepreneurship has interested researchers for a while. Nevertheless, studies have not thoroughly focused on forest-based services and related business models and value creation. This multiple case study investigates how the operating environment and entrepreneurial orientation are entailed in sustainability-pursuant value creation. We interviewed nine sustainability-oriented small and medium-sized enterprises providing forest-based services. The results indicate that the companies feature several entrepreneurial capabilities that enable them creating sustainable value. They are positively oriented towards future and consider their business as a solution to focal sustainability challenges. The companies’ operating environment can support the emergence and long-term development of sustainability-oriented businesses and innovations, and hence collaboration with stakeholders is essential for sustainable value creation. However, the established forest-based sector and existing support system have created tensions for the development of the sustainability-oriented businesses. The companies strive actively for making an impact on their operating environment to create sustainable value with and for their stakeholders. This study advances empirical research on sustainable value creation and entrepreneurship. Overall, this paper suggests that sustainability-oriented entrepreneurs need more collaboration and support for scaling up the solving of sustainability challenges.

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
Pykäläinen, 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/0000-0003-3427-9954 E-mail: jouni.pykalainen@uef.fi

article id 23080, category Research article

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

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