Small-scale Forestry

, Volume 12, Issue 4, pp 559–578 | Cite as

Non-industrial Private Forestry Service Markets in a Flux: Results from a Qualitative Analysis on Finland

Research Paper

Abstract

Previous research on European forestry service markets is scarce and mainly focused on analysing external market environment and modelling of timber selling behaviour of non-industrial forest owners (NIPFs). In this study, we aim to create a broader understanding about business perspectives of forestry service markets covering the whole array of market and institutional based services offered to the NIPFs in case of Finland. The more specific empirical objective of the paper is to describe market drivers and underlying challenges in existing and potential service business models based on the concepts of service-dominant logic and dynamic capabilities. Using a qualitative approach and 22 thematic expert interviews in service organisations, we strive to analyse the drivers and opportunities for creating new services within the NIPF market and also build insight in possible barriers for new service value creation. According to our results, the ongoing structural changes offer new opportunities to change traditional mindsets and search for new types of offerings that support the renewal of this traditional forestry sector. As one of the major barriers for new innovations we identified the dominant role of established organisations securing their current positions, mainly driven by the forest industry timber procurement needs. From a managerial perspective, the changing institutional base of the current service organisations may facilitate new innovative business start-ups in addition to enhancing the strategic capabilities and competitiveness of the established firms in Finnish forestry sector.

Keywords

Forestry value-chain Service innovation Service marketing Service dominant logic 

Notes

Acknowledgments

Financial support from FP-SERVE project funded by the Finnish Innovation Agency (Tekes) during 2010–2012 is gratefully acknowledged. We also thank for reviewers of this journal, as well as participants of the IUFRO 5.10 Conference on Forest Products Marketing in Corvallis, Oregon, USA (June 2011) and Scandinavian Society of Forest Economists in Hyytiälä, Finland (May 2012), for their constructive comments. All remaining errors are our own.

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Copyright information

© Steve Harrison, John Herbohn 2013

Authors and Affiliations

  • O. Mattila
    • 1
  • A. Toppinen
    • 1
  • M. Tervo
    • 1
  • S. Berghäll
    • 1
  1. 1.Department of Forest SciencesUniversity of HelsinkiHelsinkiFinland

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