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Mechanisms of capability evolution in the Finnish forest industry cluster

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  • Peltoniemi, Mirva

Abstract

In recent years researchers have shown increasing interest in capabilities as the foundation of competitive advantage in the forest industry. However, we still do not know how these capabilities change in the firms and in their interactions. Therefore we ask: through what mechanisms do capabilities evolve in the forest industry context? The study was conducted by interviewing 30 forest industry experts and the data was analyzed qualitatively. We find that the main mechanisms of capability evolution include capability gaps, capability selection, capability development and capability outcomes. The study contributes through a rich description of capability evolution and by identifying theoretically meaningful mechanisms through which capability evolution takes place. Furthermore, several implications for practitioners are presented.

Suggested Citation

  • Peltoniemi, Mirva, 2013. "Mechanisms of capability evolution in the Finnish forest industry cluster," Journal of Forest Economics, Elsevier, vol. 19(2), pages 190-205.
    • Handle: RePEc:eee:foreco:v:19:y:2013:i:2:p:190-205
    DOI: 10.1016/j.jfe.2013.02.001
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    Cited by:

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    2. Makkonen, Marika & Sundqvist-Andberg, Henna, 2017. "Customer value creation in B2B relationships: Sawn timber value chain perspective," Journal of Forest Economics, Elsevier, vol. 29(PB), pages 94-106.
    3. Carlos M. Jardon & Xavier Martinez-Cobas, 2022. "Leadership and Marketing Capabilities in Small Businesses of Subsistence Marketplaces," SAGE Open, , vol. 12(2), pages 21582440221, April.
    4. Figueiredo, Paulo N., 2016. "Evolution of the short-fiber technological trajectory in Brazil's pulp and paper industry: The role of firm-level innovative capability-building and indigenous institutions," Forest Policy and Economics, Elsevier, vol. 64(C), pages 1-14.
    5. Carlos Fernandez-Jardon & Xavier Martinez-Cobas & Fabian Martinez-Ortiz, 2020. "Technology and Culture in Subsistence Small Businesses," Sustainability, MDPI, vol. 12(22), pages 1-13, November.
    6. Carlos M. Jardon & Xavier Martínez-Cobas, 2019. "Leadership and Organizational Culture in the Sustainability of Subsistence Small Businesses: An Intellectual Capital Based View," Sustainability, MDPI, vol. 11(12), pages 1-16, June.
    7. Jukka Luhas & Mirja Mikkilä & Ville Uusitalo & Lassi Linnanen, 2019. "Product Diversification in Sustainability Transition: The Forest-Based Bioeconomy in Finland," Sustainability, MDPI, vol. 11(12), pages 1-19, June.

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    More about this item

    Keywords

    Capability evolution; Forest industry; Mature industries;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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