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Articles containing the keyword 'sustainability transition'

Category : Research article

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 ORCID https://orcid.org/0000-0002-1407-8349 E-mail: irene.a.kuhmonen@jyu.fi (email)
  • 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 ORCID https://orcid.org/0000-0002-5626-2929 E-mail: janne.keranen@vtt.fi

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