1

Fig. 1. Theoretical model of the study. The studied companies are part of a loose niche that operates beyond the forest-based regime. The success of the companies is the result of both niche–regime dynamics and the companies’ internal dynamic capabilities.

Table 1. Characteristics of the studied small and medium-sized companies (SMEs) utilizing wood-based side streams and interviewees’ positions within the companies. B2B: business-to-business; B2C: business-to-consumers; CEO: chief executive officer.
Firm Firm maturity B2B vs. B2C Interviewee position
1 5–10 years B2B CEO, founder
2 5 years B2B Development & quality manager
3 15–20 years B2C CEO
4 20–30 years B2B Chairman of the board
5 <5 years B2B CEO, founder
6 <5 years B2B CEO, founder
7 10–15 years B2C CEO
8 >50 years B2C Development manager
9 0–5 years B2C/B2B CEO
10 0–5 years B2B Chief technology officer, founder
Table 2. Frequencies of coding categories in the directed content analysis of the interviews with SMEs utilizing wood-based side streams. n = the number of interviewees mentioning the theme.
1. Organizational capabilities n
   Organization structure
      Decentralization 4
   Organizational culture
      Openness, trust, flexibility, agility 7
      ’Dare to disagree’ ethos 3
      Diversity of backgrounds 10
      Values 6
      Employee commitment and loyalty 5
      Leadership 5
   Organizational routines and practices
      Learning, access to information, expertise 6
      Integration of employees in decision-making 3
      Customer understanding 3
      Innovativeness 10
      Routines for innovations 8
      Incentives, human resource management 4
      Formality and hierarchy of processes 5
2. Niche-level activities
   Articulation of expectations and visions
      Core vision 10
      The role of the cascading principle 4
   Building broad and deep networks
      Partnerships, networks and cooperation to achieve the aims of the CBE 9
      Deep vs. broad partnerships 7
      Acquiring resources from networks 4
      Partnerships with end-users and customers 4
      Partnerships with regime actors 4
      Innovations resulting from partnerships 4
   Scaling-up
      Growth strategy 7
      Market creation 7
      From niche to regime substitution 4
3. Learning processes
   Technological factors
      Quality of raw material, maintaining stable quality 7
      Understanding the behavior of materials 3
   Government policy and regulatory framework
      Standardization, labelling 3
      Patents 7
      Categorization 4
      Monitoring in public procurements 2
      Legislation 6
      Extended producer responsibility 4
   Cultural and psychological factors
      Credibility 6
   Demand factors (customers/consumers)
      Customer acceptance 4
      Brand building and communication 5
      Customer willingness to pay premium 3
   Production factors
      Production technology renewal 3
      Production ecosystems 5
      Access to financial capital 5
      Availability of raw material 6
      Price of raw material 3
      Designing for circularity 3
   Social and environmental effects of new technologies
      Evidence of environmental performance 2