Journal of Forest Products Business Research Online

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Volume No. 5, 2008

A Multi-Criteria Timber Allocation Model Integrating Sawmilling Decisions by Marian V. Marinescu and Thomas C. Maness
This article discusses the development of a multi-criteria timber allocation model for use as a decision tool to analyze tradeoffs between five forest management criteria: profit, employment, wildlife, recreation, and visual quality. A sustainable forest management case was compared to a profit-based allocation case to demonstrate the viability of this tool in supporting sawmilling operations to utilize their manufacturing technologies more efficiently and better adapt to fluctuating market conditions.
Measuring Firm Innovativeness: Cross Validation by Pablo Crespell, Chris Knowles, and Eric Hansen
Recently, a new scale for measuring firm innovativeness in the U.S. forest products industry was developed. This research sought to test the validity of this scale using structural equation modeling analysis on two validation samples from the primary and secondary forest sectors. The results suggest that the new scale linking innovativeness and performance can be used across the entire U.S. forest industry, regardless of business type.
Networking, Innovation, and Performance in Norwegian Nature-Based Tourism by Erlend Nybakk, Birger Vennesland, Eric Hansen, and Anders Lunnan
This study combines an email survey with a qualitative case study to describe the potential for nature-based tourism in rural Norway. Specifically, this study sought to provide an understanding of the relationships between networking, innovativeness, and performance in Norway’s nature-based tourism industry, as well as the roles of different actors within these networks. Results suggest that there is indeed a positive relationship between networking and innovativeness and between innovativeness and performance in this increasingly important industry.
Measuring Firm Innovativeness: Development and Refinement of a New Scale by Chris Knowles, Eric Hansen, and Clay Dibrell
Using a two-stage survey methodology, this study sought to develop and refine a new scale measuring firm innovativeness in the forest products industry. Such a scale can be used to provide a systematic means of evaluating the relationship between firm performance and innovativeness, defined as the propensity of firms to create and/or adopt new products, processes, and business systems. Each stage of the scale development is presented in this study, culminating with an assessment of the validity and reliability of this new scale.
An Assessment of the Supply Chain for Marketing Medicinal Plants from the Rainforest Region of Nigeria by Gbadebo Jonathan Osemeobo
This study combines a questionnaire and field observations to examine the trade of medicinal plants (non-timber forest products) from the Nigerian rainforest region in local markets. An in-depth investigation of the efficiencies of these supply chains reveals that the trade of medicinal plants can contribute to livelihoods and well-being, but that traders face a number of issues related to markets and marketing. Perhaps the most critical issue revolves around the over-harvesting of medicinal plants, suggesting that measures need to be taken for ensuring the stability of habitats from which these goods are derived.
An Application of Textual Analysis in the U.S. Residential Siding Industry by Daniel F. McGraw, Paul M. Smith, Marybeth T. Smith, and Mark A. Gagnon
This article demonstrates the use of software-based textual analysis to identify U.S. residential siding product and service attributes promoted in advertisements in the top seven builder-focused magazines in the first quarter, 2005. This research methodology represents an alternative, less intrusive approach to conventional market research survey methods with the potential to mitigate survey limitations such as low response rates, high costs, and respondent and sample bias. A total of 90 advertisements were examined, classified, tagged, and compiled within five classes of siding material (solid wood, wood composite, vinyl, fiber cement, and brick/masonry). Findings from this exploratory research indicate that siding manufacturers use magazine advertising to convey unique attributes to builders such as design flexibility, curb appeal, company reputation, and warranty.
Achieving Sustained Competitive Advantage in the Forest Products Firm: The Importance of the Resource-Based View by Richard Bonsi, Devi R. Gnyawali, and A. L. Hammett
Prior research on forest products firms has examined external factors and largely neglected the role of internal firm resources and capabilities in creating and sustaining competitive advantage. Although a small and emerging body of research has examined competitiveness, competitive advantage (CA), and sustained competitive advantage (SCA), the literature is fragmented and provides few insights for managers. In this article, the resource-based view (RBV) of the firm is used to examine firm resources and capabilities and explain how they can be used in accordance with the attributes of the theory toward attaining SCA in the forest products firm. The systematic conceptual framework helps managers to better understand and use core ideas of the RBV to develop and leverage resources and capabilities in order to create and sustain CA and helps to stimulate future research in this important area.

Volume No. 4, 2007

Process Transformation Mandates for Manufacturing Customized Furniture by Emmanuel T Kodzi Jr., Torsten Lihra, and Rado Gazo
This study combines a case study with an in-depth survey to examine mass customization in the furniture manufacturing sector. Specifically, the roles of process transformations, supply-chain characteristics, design platforms, and customer interfaces in customizing businesses are evaluated. The study makes a case for comprehensive, rather than piecemeal, manufacturing system improvements and provides a framework for furniture manufacturing businesses to better evaluate their readiness with respect to implementing mass customization strategies.
The Effect of Forest Context on Consumer Preferences for Environmentally Certified Forest Products in New Zealand and Australia by H.R. Bigsby and L.K. Ozanne
This survey of New Zealand and Australian consumers used conjoint analysis to compare the effect of forest context on the relative importance of forest certification. Several product attributes were studied and the results show that forest certification was ranked as being the second and third most important product attribute for Australian and New Zealand consumers, respectively. In Australia, forest type, with plantation sources being preferred to native forest sources, was the most important product attribute, while in New Zealand, region was the most important attribute with preference given to New Zealand sources over imports.
Economic and Environmental Impact Assessment of Proposed Bark-Free Requirements for Wood Pallets in International Trade by Charles D. Ray, John J. Janowiak, Judd H. Michael, and Hrabrin Bachev
Policy changes in foreign markets threaten to require wood packaging materials to be free of bark. Since approximately one in five North American wood pallets contains bark, such a policy could have dramatic wood use and economic implications. This paper outlines these implications estimating total costs to U.S. exporters of over $2.5 billion over ten years.
Outsourcing of Wood-Based Component Manufacturing: Driving Forces Found in Scandinavian Companies by Dan Andersson, Staffan Brege, Daniel Nordigården, and Jakob Rehme
Using a multiple case study approach, this research investigates driving forces for outsourcing in the Scandinavian wood products sector. Outsourcing is a relatively new activity for most companies in this sector. The research identifies the following driving forces: 1) component cost reduction, 2) reallocation of resources to marketing and sales, 3) core competence focus, 4) operation/capacity constraints, and 5) finances.
Product Development in the Swedish and Finnish Sawmilling Industry – A Qualitative Study of Managerial Perceptions by Matti Stendahl, Anders Roos, and Mårten Hugosson
This study uses a qualitative approach to investigate new product development practices in the Swedish and Finnish sawmilling industries. Companies commonly started product development projects to increase competitiveness of the product portfolio but these efforts also had a significant effect on the renewal of company resources and capabilities. The new product development process practiced by responding companies was found to be informal and flexible. Promotion of entrepreneurship and market orientation and set up of rapid and informal, yet complete and well-defined development projects led by a strong leader were found to be keys to new product development success.
Using Quality Function Deployment to Assess If a Strategy is Market-Oriented by Ernesto R. Wagner, Eric Hansen, and Gerardo Ungson
This article outlines the use of Quality Function Deployment as a means for forest products companies to assess and improve their market orientations by providing objective measures related to how Competitive Advantages are consistent with what customers want. Results using this methodology among architects in the United States and Chile suggest that innovation, product differentiation, and export orientation are the most relevant Competitive Advantages for meeting their needs.
Perceived Environmental Quality of Wood Products: The UK Market by Ritva Toivonen
This article explores whether wood product customer perceptions of environmental product attributes are structured as one or several dimensions. Data from 40 UK-based companies show that in addition to sustainable forest management, health impacts are important to their customers. Environmental quality is found to be two-dimensional and related to information. DIY companies consider their customers more environmentally sensitive than other companies.
Distributional Properties of Financial Ratios and Performance of the Furniture Industry: A Comparison Based on Critical Financial Factors by Henry Quesada-Pineda and Rado Gazo
This study benchmarks the performance of companies producing kitchen cabinets, household furniture, and office and institutional furniture in North America, Europe, and Asia. Findings suggest that companies from America and Europe have a better performance in terms of Capital Turnover than companies from Asia but there is no difference in performance when comparing Liquidity and Operating Efficiency. The kitchen cabinet and household furniture sectors were found to have better Liquidity performance than office and institutional furniture. While Asia is still lagging in performance, it is catching up with America and Europe.
Letter from the Editor

Volume No. 3, 2006

A Method to Assess and Prioritize Customer Needs Among Substitute Materials by Ragnar Jonsson
This article outlines the use of customer satisfaction modeling for assessing end-consumer needs in the context of floor coverings. Increasing the competitiveness of wood as a building material requires knowledge of quality improvements and/or product development needed to best satisfy customers. As such, information is needed regarding the impact on customer satisfaction of the fulfillment of different customer needs or requirements, especially relative to substitutes.
A Capability-Based View on Organizational Renewal: Maintaining Long- and Short-Term Potential for Growth in Large, Established Companies by Silja Korhonen
This article synthesizes the literature on corporate and strategic entrepreneurship, organizational learning, innovation, and marketing. Its purpose is to contribute to the understanding of sustainable growth and organizational renewal in large established companies operating in the wood industry. The paper helps strategic planners to manage the tension between the long- and short-term potential for growth and wealth creation and indicates directions for future research.
Current State-of-Knowledge: Innovation Research in the Global Forest Sector by Eric Hansen, Silja Korhonen, Ewald Rametsteiner, and Steven Shook
This synthesis article provides a broad picture of the state-of-knowledge in innovation-related literature across three categories: organizational innovativeness, new product development, and innovation systems. General findings in the literature are outlined and specific results from the forest sector identified, followed by a discussion of areas requiring additional research.
Corporate Use of Derivatives for Hedging in the Forest Products Industry by Brooks C. Mendell
This article explores the extent to which firms in the forest products industry use financial derivatives for hedging purposes. The study analyzes data from 2002 10-K filings of 19 U.S.-based, publicly traded forest products firms representing nearly $123 billion in revenues. Total value of existing derivative contracts stood at $9.2 billion.
Procurement Strategies in the Homebuilding Industry: An Exploratory Study on the Largest Builders in the United States by Aurélia Lefaix-Durand, François Robichaud, Robert Beauregard, Robert Kozak, Jean-Marc Frayret, and Diane Poulin
This article investigates large homebuilder strategies regarding supplier relationships. Specifically, the exploratory study investigates changes in procurement sources and arrangements, collaborative practices, and information technology use. More direct, cooperative and long-term oriented relationships with suppliers are expected in the future.
Financial Performance and Internationalization of Operations: Evidence from Finnish Forest Industry Companies by Anne Toppinen, Katja Lähtinen, and Susanna Laaksonen-Craig
This paper looks at the impacts of internationalization on financial performance of forest industry companies using data from Finland. Internationalization was measured based on the share of non-Finland-based employees. Internationalized firms performed better than non-internationalized on measures such as Quick Ratio while the opposite held true for measures such as Return on Investment.
A Decade of Innovation in Particleboard and Composite Materials: A Content Analysis of Washington State University’s International Particleboard/Composite Materials Symposium Proceeding by James S. Peters, David T. Damery, and Peggi Clouston
This paper creates a typology and characterizes recent technology innovation in particleboard and composite materials. Content analysis of proceedings from the International Particleboard/Composite Materials Symposium allowed the authors to identify four major clusters of like-type technology innovations – manufacturing, high technology, materials processing, and new products. Overall, process innovations were found to be most common.

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Volume No. 2, 2005

E-business in the Québec Forest Products Industry: Perceptions, Current Uses, and Intentions to Adopt by Ègide Karuranga, Jean-Marc Frayret, and Sophie D’Amours
Despite its location in a country where information technology adoption level is generally high, the Québec forest products industry still lags behind other sectors. Perceptions, currents uses, and intentions of adoption are described with a comparison to the same industry in North America. Results show a lack of strategic vision concerning the exploitation of IT tools.
Applying the Thinking Process of the Theory of Constraints: An Exploratory Research Methodology to Evaluate the Lack of Use of Cut-to-Length Harvesting Systems in the Southeastern United States by Ian P. Conradie, W. Dale Greene, James F. Cox, and Glen E. Murphy
The Thinking Process of the Theory of Constraints is especially valuable in exploratory research with small populations making it useful when conventional statistical methods are not appropriate. This article demonstrates the use of this method in identifying why cut-to-length (CTL) harvesting systems are rarely used in the southeastern United States.
Determining Consumer Preference for Furniture Timber by H.R. Bigsby, C. Rai, and L.K. Ozanne
This paper uses the Q-sort method as a means to determine consumer preferences for furniture timber. The New Zealand furniture industry’s traditional timber has become difficult to source, so this research looked at the potential for 17 different timber samples. Color and grain were found to be the key attributes used to form preferences.

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Volume No. 1, 2004

Editorial
Adoption of Innovations in Tradition-bound Industries: Uncertainty and Competitive Rivalry Effects on Adoption of Wood Products by Steven R. Shook and Leslie C. Ganus
A common perception of tradition-bound industries is that they are less inclined to adopt new product and process innovations. This study looks at the residential construction industry along the Pacific Coast of the United States. Adoption is not significantly affected by builder perceptions of uncertainty and competition.
Guidelines for Sustainable, External Corporate Growth: A Case Study of the Leading European and North American Companies in the Wood Industry by Silja Korhonen and Juha S. Niemelä
In the wood industry, growth has often been an objective as such rather than an outcome of a value-creating investment strategy. This qualitative paper looks at various dimensions of growth and concludes that securing growth in knowledge-attainment resources has gained in importance and is necessary if the benefits of increased volume are to be realized.
What Governs the End-consumer’s Choice of Floorcovering: A Study of Substitute Competition by Ragnar Kals Henrik Jonsson
There is limited knowledge of factors affecting the end-consumer’s choice of building material for specific purposes, especially relative to competition. This study of the Dutch floorcovering market revealed that usage context, life situation, and individual experience are important in substitute competition.
International Trade Shows and Foreign Market Information Acquisition: An Analysis Within the International Home Building Industry Sergio A. Molina-Murillo and Timothy M. Smith
This paper explores international trade shows as a source of foreign market information for U.S. exhibitors engaged in the global building materials marketplace. Trade shows are an important source of foreign marketing information for respondents examined in this study, and success in acquiring foreign market information is affected by where the show is conducted and which geographic market segment is targeted.
Supply Chain Management Mapping for the Forest Products Industry: Three Cases from Western Canada Erlend Y. Haartveit, Robert A. Kozak, and Thomas C. Maness
This paper reviews the development of supply chain management (SCM) and identifies a number of considerations for applying these techniques to the forest products industry. Two supply chain mapping methods were applied to three case companies. It was found to be challenging to apply these techniques (and SCM in general) to commodity-based supply chains.

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