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Strategic change in the forest industry towards the biorefining business

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  • Näyhä, Annukka
  • Pesonen, Hanna-Leena

Abstract

The aim of the study was to explore the current forest industry's change features, necessary resources and management for the biorefining business in Scandinavia and North America. A total of 23 representatives from the forest, bioenergy and bioproducts sectors participated in themed interviews in the last round of a three-phase Delphi study. In both Scandinavian and North American forest industries, a conservative organizational culture and lack of financial resources create barriers to change. The role of the forest industry in the forest biorefinery consortium is largely seen to be that of a biomass provider. The scope of change depends on context-specific features, such as biorefinery location and raw material availability. Operating a commercial-scale biorefinery facility requires both new managerial and operational-level skills. Readiness for change needs to be embedded in the organizational culture — and the key to attaining this is open-minded organizational management. It is believed that there are innovative personnel in forest industry companies, yet the current culture does not encourage such people to submit their ideas. Success in the biorefinery business cannot be achieved without collaboration. However, sharing of profits among partners in the consortium will be challenging.

Suggested Citation

  • Näyhä, Annukka & Pesonen, Hanna-Leena, 2014. "Strategic change in the forest industry towards the biorefining business," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 259-271.
    • Handle: RePEc:eee:tefoso:v:81:y:2014:i:c:p:259-271
    DOI: 10.1016/j.techfore.2013.04.014
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    References listed on IDEAS

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    1. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    2. Naik, S.N. & Goud, Vaibhav V. & Rout, Prasant K. & Dalai, Ajay K., 2010. "Production of first and second generation biofuels: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(2), pages 578-597, February.
    3. Polli, Rolando & Cook, Victor, 1969. "Validity of the Product Life Cycle," The Journal of Business, University of Chicago Press, vol. 42(4), pages 385-400, October.
    4. Näyhä, Annukka & Pesonen, Hanna-Leena, 2012. "Diffusion of forest biorefineries in Scandinavia and North America," Technological Forecasting and Social Change, Elsevier, vol. 79(6), pages 1111-1120.
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