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

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