A Comparative Assessment of the Forestry Services in Finland and Sweden

Non-industrial private forest owners (NIPFs) are the most significant ownership group in Finland and in Sweden by owning more than half of the productive forest land. Emphasis on meeting the industry requirements for stable roundwood supply has traditionally dominated the service offerings targeted to NIPFs but the changing objectives of the private forest owners have also diversified their service needs. Therefore, it seems that the traditional ‘roundwood supply approach’ does no longer match the service needs among modern forest owners. More flexible service markets and a larger number of actors might improve conditions for those forest owners with more diverse service needs. Environmental and cultural similarities combined with the long common cultural traditions make the comparison of Finnish and Swedish forestry services markets reasonable: the good methods in each country could be adopted also by the ‘neighbour’. The Finnish markets are facing structural changes when it comes to organising the service delivery system. In Sweden, especially the role of the forest owners’ organisations and the present situation offers some clues of the way the Finnish system is possibly going to evolve. Changes in the financial base of the Finnish forest management associations towards the Swedish way of the voluntary membership system could affect the whole service markets. Simultaneously, the stronger interest groups of the independent forestry entrepreneurs in the Finnish markets are supporting entrepreneurship, compared with the Swedish where contractors struggle in a difficult market environment against strong industry. The theoretical objective is to examine and compare the market and institutional background for service innovation in the contexts of Finnish and Swedish forest clusters. Based on the concepts of service-dominant logic and dynamic capabilities, the empirical objective of the project is to describe the existing and potential service business models and their development possibilities. This research contributes to an improved service-dominant logic based system in which customer value is created at the level of the whole network of actors. Using qualitative approach and 16 thematic expert interviews in Swedish and Finnish service organizations, we will aim to identify potential barriers and opportunities for creating new services in the NIPF markets and, further, suggestions to develop new service innovations to fulfil emerging needs among forest owners.


Issue Date:
2012-05
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/199304
PURL Identifier:
http://purl.umn.edu/199304
Published in:
Scandinavian Forest Economics: Proceedings of the Biennial Meeting of the Scandinavian Society of Forest Economics
2012, Number 44
Page range:
104-115
Total Pages:
13




 Record created 2017-04-01, last modified 2018-01-23

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