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Silva Fennica 1926-1997
Acta Forestalia Fennica

Articles containing the keyword 'strategy'.

Category: Research article

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.
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 ORCID ID:E-mail: (email)
  • Crespell, FPInnovations (Forintek Division), Vancouver, BC, Canada ORCID ID:E-mail:
  • Hansen, Oregon State University, College of Forestry, OR, USA ORCID ID:E-mail:
article id 211, category Research article
Timo Pukkala. (2009). Population-based methods in the optimization of stand management. Silva Fennica vol. 43 no. 2 article id 211.
In Finland, the growth and yield models for tree stands are simulation programs that consist of several sub-models. These models are often non-smooth and non-differentiable. Direct search methods such as the Hooke-Jeeves algorithm (HJ) are suitable tools for optimizing stand management with this kind of complicated models. This study tested a new class of direct search methods, namely population-based methods, in the optimization of stand management. The tested methods were differential evolution, particle swarm optimization, evolution strategy, and the Nelder-Mead method. All these methods operate with a population of solution vectors, which are recombined and mutated to obtain new candidate solutions. The management schedule of 719 stands was optimized with all population-based methods and with the HJ method. The population-based methods were competitive with the HJ method, producing 0.57% to 1.74% higher mean objective function values than HJ. On the average, differential evolution was the best method, followed by particle swarm optimization, evolution strategy, and Nelder-Mead method. However, differences between the methods were small, and each method was the best in several stands. HJ was alone the best method in 7% of stands, and a population based method in 3% (Nelder-Mead) to 29% (differential evolution) of stands. All five methods found the same solution in 18% of stands.
  • Pukkala, University of Joensuu, Faculty of Forest Sciences, P.O. Box 111, FI-80101 Joensuu, Finland ORCID ID:E-mail: (email)
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.
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 ORCID ID:E-mail: (email)
  • Roos, Swedish University of Agricultural Sciences, Department of Forest Products, P.O. Box 7008, SE-750 07 Uppsala, Sweden ORCID ID:E-mail:
article id 589, category Research article
Pekka Mäkinen. (2001). Competitive strategies applied by Finnish timber carriers following deregulation. Silva Fennica vol. 35 no. 3 article id 589.
The present study examines the success of timber carriers and the factors involved in their success immediately following deregulation. In Finland in 1991 the timber trucking sector was deregulated. Means testing was changed to suitability testing, which meant that the Ministry of Transport and Communications, provincial authorities and the trucking association could no longer regulate the entry of new entrepreneurs to the sector. The present research material contains two successful enterprise groups. In the strategically more successful group, good results were obtained with a moderate labour input by the entrepreneurs. The strategic position of this group was considered to be successful because the operating hours of the trucks were fairly high but the work loads imposed on the entrepreneur remained reasonable. The profitability of these enterprises was so good that it was possible to use hired labour to drive the trucks. The work load of close to half of the unsuccessful entrepreneurs had been large or extremely large. In some cases, the obvious reason for failure was their inadequate transportation rates. Others had seemingly satisfactory haulage rates when compared to the average, but still their enterprises performed poorly. In these cases, the explanation lay in the inefficiency of operations or excessive debts, the latter caused, for example, by earlier operations. The results of this study do not support the view that a lot of hard work generally means success in entrepreneurship. The results support the view that both entrepreneurs’ work and management inputs have a significant impact on the success of the enterprise, and that high tariffs alone are not a guarantee of success.
  • Mäkinen, Finnish Forest Research Institute, Vantaa Research Centre, P.O. Box 18, FIN-01301 Vantaa ORCID ID:E-mail: (email)

Category: Review article

article id 312, category Review article
Katja Lähtinen. (2007). Linking resource-based view with business economics of woodworking industry: earlier findings and future insights. Silva Fennica vol. 41 no. 1 article id 312.
The business environment and sources of competitiveness in the woodworking industry have changed notably since the 1990s. Wood products are traded globally, and with the increase of trade, abundant forest resources are no longer the main source of sustainable competitiveness. Competition within the woodworking industry is increasing both between European and non-European enterprises, as well as within the EU. Capability to create value-added, making rational strategic choices, and creative usage of intangible and tangible resources have been emphasized as crucial for sustaining woodworking industry competitiveness in higher cost-level countries. Resource-based view (RBV) defines the availability of intangible assets, capabilities and tangible resources, and their heterogeneous combination to form the basis for company success. The objective of this review is to examine the possibilities to employ the RBV to the study of the woodworking industry by combining existing empirical results of the factors of companies’ competitiveness with assessment of the RBV. In the existing literature, strategies implemented in woodworking companies have been approached rather widely, while the role of intangible and tangible resources in building firm-level success has received less focus. In addition, a significant gap exists in linking firms’ financial accounting information with empirical data on their resource-usage and business strategies. In future studies, more information of the effects of these strategic elements on the actual business success of the firms would be needed.
  • Lähtinen, Finnish Forest Research Institute, Joensuu Research Unit, P.O. Box 68, FI-80101 Joensuu, Finland ORCID ID:E-mail: (email)

Category: Article

article id 5562, category Article
Janne Uuttera, Matti Maltamo. (1995). Impact of regeneration method on stand structure prior to first thinning. Comparative study North Karelia, Finland vs. Republic of Karelia, Russian Federation. Silva Fennica vol. 29 no. 4 article id 5562.

Comparisons were made between artificially and naturally regenerated stands in the south-eastern part of North Karelia, Finland, and naturally regenerated stands in the western parts of the Republic of Karelia, Russian Federation. The effect of soil fertility and silvicultural operations on the stand structure was also investigated.

The results of the study show clearly that when forests are artificially regenerated the stand structure includes less variation when compared with the stands naturally regenerated. Differences between the regeneration methods are clearer the more fertile the forest site is. Within the regeneration method there is also a clear trend in stand structure, with the variation decreasing the poorer the site. The effect of silvicultural operations, i.e. the cleaning of the sapling stand, has disappeared by the time of first thinning, although it appears to have a permanent effect on the dynamics of the tree species within a stand.

The variation of the stand structure can be regarded as an essential factor for the potential biodiversity of the stand also at its young vegetation succession stage. This capacity for maintaining the forest biodiversity, developed at the young vegetation succession stage, becomes increasingly important in subsequent vegetation succession stages. Natural regeneration provides improved possibilities for the operations preserving forest biodiversity, as it generates more dense stands with a wider variation in stand structure, compared to artificial regeneration.

  • Uuttera, ORCID ID:E-mail:
  • Maltamo, ORCID ID:E-mail:
article id 5499, category Article
Niels Elers Koch. (1993). Outlines of environmental policy concerning forests in the European Community. Silva Fennica vol. 27 no. 1 article id 5499.

The paper, presented at the seminar ”Forestry in Europe: Implications of European Integration for National Forestry”, discusses the effects of first Forestry Action Programme in the European Community, UNCED 1992, the European Community’s new Forestry Strategy and the second Forestry Action Programme directives of conservation of habitats on forestry within the EC.

  • Koch, ORCID ID:E-mail:
article id 5162, category Article
Jarmo Eronen. (1982). Soviet pulp and paper industry: Factors affecting its areal expansion. Silva Fennica vol. 16 no. 3 article id 5162.

Planners of the Soviet pulp and paper industry are constantly faced with the problem: which investment policy guarantees the best location structure? Should one invest in existing localities or expand to new areas, especially in heavily forested parts of Siberia? A location theory for the pulp and paper industry, based on three factors (markets, wood raw materials, relative costs) has been suggested by the Soviet authors Antonov and Trusova. In the present study the theory is – for the first time – given empirical contents and the feasible areas for future growth of the industry are tentatively determined. One of the main findings of the study is the detecting of considerable unutilized wood reserves in the European USSR. This supports those Soviet views advocating a European-oriented location in investment strategy for the industry, as market and cost factors are unfavourable to Siberian location.

The PDF includes a summary in Finnish.

  • Eronen, ORCID ID:E-mail:
article id 7509, category Article
Mauno Pesonen. (1995). Non-industrial private forest landowners’ choices of timber management strategies and potential allowable cut. Acta Forestalia Fennica no. 247 article id 7509.

In the study, the potential allowable cut in the district of North-Savo, Eastern Finland was clarified  based on the non-industrial private forest landowners’ (NIPF) choices of timber management strategies. Alternative timber management strategies were generated, and the choices and factors affecting the choices of timber management strategies by NIPF landowners were studied. The choices of timber management strategies were solved by maximizing the utility functions of the NIPF landowners. The parameters of the utility functions were estimated using the Analytic Hierarchy Process (AHP).

The level of the potential allowable cut was compared to the cutting budgets based on the 7th and 8th National Forest Inventories (NFI7, NFI8) in Finland, to the combining of private forestry plans, and to the realized drain from non-industrial private forests. The potential allowable cut was calculated using the MELA system that has been used in calculating the national cutting budget.

The data consisted of the NIPF holdings that had been inventoried compartmentwise and had forestry plans made in 1984–92. The NIPF landowners’ choices of timber management strategies were clarified by a mail inquiry.

The most preferred strategy obtained was ”sustainability” (chosen by 62% of landowners). The second was ”finance” (17%) and the third ”savings” (11%). ”No cuttings”, and ”maximum cuttings” were the least preferred (9% and 1%, resp.). The factors promoting the choices of strategies with intensive cuttings were: a) ”farmer as forest owner” and ”owing fields”, b) ”increase in the size of the forest holding”, c) agriculture and forestry orientation in production, d) ”decreasing short-term stumpage earnings expectations”, e) ”increasing intensity of future cuttings”, and f) ”choice of forest taxation system based on site productivity”.

The potential allowable cut defined in the study was 20% higher than the average of the realized drain in 1988–93, which was at the same level as the cutting budget based on the combining of forestry plans in Eastern Finland. The potential allowable cut defined in the study was 12% lower than the NFI8-based greatest sustained allowable cut for the 1990. Using the method, timber management strategies can be clarified for private forest owners.

  • Pesonen, ORCID ID:E-mail:
article id 7684, category Article
Pekka Mäkinen. (1993). Puutavaran kuljetusyritysten menestymisen strategiat. Acta Forestalia Fennica no. 238 article id 7684.
English title: Strategies used by timber truck companies to ensure business success.

The aim of the study was to determine how timber truck transport business succeeds in the competition within its sector, and the effect it has on profitability structure of the sector. Furthermore, strategic groups were looked at in depth, as well as the competitive strategies of the most successful companies and groups of companies. The theoretical competitive strategy was operationalized.

A total of 53 timber truck transport entrepreneurs were interviewed. The average age of the entrepreneurs was 51 years. Of the businesses, 35% were partnership companies, 6% open companies, and 59% self-employed. The business owned an average 1.5 trucks, and at the time of interviewing their average age was four years. Nearly nine out of ten entrepreneurs had no schooling for the line of business, and four out of five had no short-term training. The attitude of the timber truckers toward their activities was more like that of self-employed persons than that of entrepreneurs. A total of 61.5% of them reporter that they carried on entrepreneurship simply to assure themselves a job.

The operational profitability of the sector has been good in the years 1984 to 1990, and the business profitability fairly good. The median equity ratio in the sector has remained at about 20% and the ratio of debts to turnover about 40%. The sector has been more profitable than forest machine contracting primarily due to the barriers to entry into the sector.

Cluster analysis, using Ward’s method, was used for seeking out strategic groups. The lengths of the customer relationships proved a significant barrier to mobility. The most successful business used the competitive strategy of cost weighted focussing. This was done through optimization of the capacity utilization rate and through choice of correct customers. The strategic position for successful business was judged to be good in the future. Success in the future will require above all activeness and innovation ability.

The PDF includes a summary in English.

  • Mäkinen, ORCID ID:E-mail:

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