Browsing by discipline "Forest Economics and Marketing"

The purpose of this master’s thesis is to evaluate the reliability of forest products forecast information produced by United Nations Economic Commission for Europe member States. The study also aims to answer which dimensions of data quality are the most important when producing these predictions This study is carried out as quantitative research and it focuses on the predictions made by the 27 member States, produced between 2002 and 2017. This research aims to find out what methods are used by different member States and which methods produce the most reliable results. This research also aims to find out if there are any differences in reliability when assessing different product flows (removals, production, exports or imports) of the various products analyzed. There were clear differences visible between different products in the results of this research. In some products, almost all member States had managed to produce reliable predictions, while for others majority of member States didn’t manage that. There were also differences between member States and some were clearly more reliable than others. The biggest factor affecting reliability was volume: for most parts, bigger volumes meant more reliable predictions. Production and removals were more reliable product flow than imports or exports. This is due to the nature of imports and exports, as they are more easily affected by outside impacts. Although all member States were able to be sorted into four groups based on how different product flows looked like, no clear patterns were visible when observing how different member States produce predictions. Almost all of the interviewed representatives of member States reported that they were using almost or exactly the same methods to produce predictions.

Suomessa metsätilojen pirstoutuminen on jatkuvaa ja sen seurauksena pienten metsäkiinteistöjen lu-kumäärä kasvaa. Ajan kanssa ja isossa kuvassa tällainen kehitys saattaa johtaa puunkorjuun mahdolli-suuksien heikkenemiseen ja sen tehokkuuden huononemiseen. Tutkimuksen tavoitteena on selvittää pienten metsäkiinteistön omistajien arvosuuntautuneisuuden vaikutuksia omistuksesta koettuun hyö-tyyn. Omistuksesta koettu hyöty perustuu ekosysteemipalveluluokituksen mukaan tuotanto-, säätely-, kulttuuri- ja ylläpitopalveluihin. Tutkimuksessa arvosuuntautuneisuutta mitattiin Schwartzin kehittämän arvoteorian pohjalta laaditun mittariston avulla, jonka pohjalta vastaajat ryhmiteltiin eri arvosuuntautuneisuusluokkiin. Koettua hyö-tyä mitattiin rahamääräisesti luopumishalukkuudella kiinteistöstä, käyttäen ehdollisen arvottamisen menetelmää. Kohderyhmänä oli pääkaupunkiseudulla asuvat sähköpostiosoitteen omaavat alle 20 heh-taarin metsäkiinteistön omistajat. Tutkimus toteutettiin kvantitatiivisena tutkimuksena ja tulokset ana-lysoitiin tilastollisen menetelmin SPSS-ohjelmaa hyödyntäen. Tutkimuksen perusteella vastaajat (n=268) jakaantuivat eri arvosuuntautuneisuusluokkiin seuraavasti: Individualistit (25,6%), Idealistit (29,3%), Traditionalistit (25,6%) ja Opportunistit (19,5%). Vastaajien arvosuuntautuneisuus ei juurikaan vaikuttanut omistuksesta koettuun kokonaishyötyyn. Eroa syntyi eri ekosysteemipalveluluokkien välillä. Idealistit arvostivat muista poiketen säätely- ja ylläpitopalveluita enemmän. Individualistit poikkesivat muista arvostaen tuotantopalveluita muita enemmän. Muutoin arvosuuntautuneisuusluokkien profiilit olivat melko yhdenmukaiset. Hinnanlisällä mitattiin luopumis-halukkuutta, joka tarvittaisiin kompensoimaan omistajan kokema omistuksen arvon menetys markki-nahintaan verrattuna. Luopumishalukkuudessa Individualistien ja Idealistien välillä oli noin 15 pro-senttiyksikön välinen ero hinnanlisissä. Traditionalistien ja Opportunistein välillä hinnanlisissä ero oli reilut 2 prosenttiyksikköä ja ne sijaitsivat hinnanlisissä noin puolivälissä Individualisteja ja Idealisteja. Vaikka tutkimuksessa eroja löytyi, niin niiden tilastollinen merkitsevyys jäi verrattain alhaiseksi. Se saattaa johtua tutkittavan aineiston vähyydestä. Tutkimuksen ansiot ovat enemmänkin kohdeilmiöön liittyvässä lähestymistavassa, jossa koettua hyötyä ja luopumishalukkuutta pyrittiin selittämään ar-vosuuntautuneisuuden avulla. Tämän takia tutkimus toimii parhaiten esitutkimuksen laajemmalle val-takunnalliselle selvitykselle, jonka tuloksia voitaisiin hyödyntää yhteiskunnallisessa päätöksenteossa ja vaikutusarvioinneissa.

The aim of this study is to assess future export markets for the Finnish industrial wood construction sector. This is done by analysing secondary materials, previous studies and creating a future vision of Finnish industrial wood construction sector and particularly its exports by the year 2030. This analysis is based on qualitative individual expert interviews and a backcasting analysis using expert panel data. In addition, the study compares the current status of the forest industry exports and future assessments between Finland, Sweden and Estonia by analysing secondary materials, previous studies and expert views. The study was implemented using two different qualitative data sets. Semi-structured thematic expert interviews were collected from Finland, Sweden and Estonia. Expert interviews were used to get an in-depth understanding of the current status of the domestic industrial wood construction sector and the related export opportunities in Finland, Sweden and Estonia. A panel made up of Finnish experts were invited to create an ideal vision of the industrial wood construction sector in Finland and its exports for the year 2030. The panel gathered at a workshop, where their visions were created. In addition, pre- and post-event-questionnaires were part of the expert panel data collection, and this data was used to identify the most promising export countries/regions and the entities of exports in the industrial wood construction sector (e.g., whether to export materials, modules or construction projects). The results emphasised that concrete collaborative actions are needed as soon as possible in knowledge sharing and the industrial wood construction marketing. Based on the International market selection model (IMS), which is employed in this study and combining all the information from the workshop, interviews, literature and questionnaires have proven that the most promising future markets would be Central Europe, the UK and the Nordics by 2030. Otherwise the Finnish expert views of most promising export entities by 2030 varies between products, know-how and projects. During the research process it was realised that future markets need to take a closer look especially from the companies’ perspective. Finnish experts have varying views of the industrial wood construction export in their ideal vision for 2030. The study proved that the experts’ views were divided. Many of them desired that Finland should export more know-how and projects in 2030. Others believed that Finland should concentrate on the export of value-added materials. However, all the experts agreed that Finland should activate the local market and harmonize the regulations, which has had a positive influence on competence and know-how. In the ideal vision for 2030 Finland has improved its networks and co-operation inside the forest industry but also together with other fields. Finland has an open digital platform for knowledge sharing and the standards and regulations are more advanced. The wood construction industry is ideally in 2030 more attractive for students and experts than now, domestic market is wider and Finland has gained more experience and knowledge in the field of industrial wood construction. Finnish experts saw that the future exports markets for industrial wood construction are China, the Nordics, Germany, Russia and Central Europe. China was seen as an attractive market due to the size of the market, rising environmental awareness, wealthier middle class and increasing urbanization. However, China and other emerging countries have to be treated with caution, because they were not highlighted in the Estonian, Swedish or literature-based data analysis. Secondly, the Nordics construction culture is similar, location is nearby and the use of wood is increasing. Also, the harmonization of standards with Nordics came up in the expert data. Overall, the practise of industrial wood construction and environmental awareness are increasing in Europe, especially the countries where there are traditions in wood construction like countries in Central Europe. Swedish experts saw market potential and competitiveness in Central Europe and Eastern Europe, but the data from Sweden is limited to researchers’ opinions. The Estonian experts saw market potential in the UK, Germany and Ireland by 2030. However, the future markets for industrial wood construction needs a closer look as well as export entities, which divided the expert’s views.

This qualitative study focuses on the future of wooden multi-storey construction through the use of the Delphi Method. The study uses a dissensus approach, with two rounds, and gives explorative results of the subject. The aim of the study is to find crucial factors, which the industry experts see as shaping the value chain of WMC in the future. The study proposes, that the main factors that are crucial in the shaping of the future value chain of WMC are related to knowledge transfer, technological aspects and co-operative ways of creating value. The study also suggests that at least in the WMC part of the forest industries, there is a shift in strategic orientation taking place towards the so called Service Dominant Logic. The study also finds that though seen as desirable development for WMC, the growth of importance of sustainability is not seen as a likely future view. This study suggests that further research should be directed at uncovering ways in which potential benefits can be grasped as well as to finding new ways to facilitate co-operation in the value chain.

The use of plastics has remarkably increased during the last 50 years. Due to its multi-use possibilities, durability and low cost the use of plastics is expected to double within the next twenty years. Despite the many benefits of plastics, the negative impacts to the environment, such as marine plastic, have raised the public attention and accelerated the demand for legislative action. To respond to these challenges, the European Commission (EC) engaged in developing a set of policies, such as the action plan for circular economy in 2015 which aimed to reduce the use of plastics and to enhance the recycling and reusing of plastics already in circulation. In 2018 the EC introduced a set of revised directives regarding the extended producer responsibility (EPR). I wanted to understand how this revised EPR scheme would be implemented into national legislation, and how it would be confronted by organisations such as ones dealing with wood products. Additionally, I also mapped the potential managerial implications for stakeholders resulting from the implementation of the scheme. I operationalised Primmer's (2011) framework of institutional adaptation which builds on two complementary strands of literature; policy implementation and organisational adaptation. The two focal research questions that derived from the framework were: How did the involved actors recognise and perceive the challenges in 1) implementing and 2) adapting to the extension to the existing EPR scheme in the use of plastic packaging of wood products? The data were collected by conducting seven semi-structured interviews with representatives of stakeholder organisations. The insights were explored and reported from these data via the means of qualitative content analysis. Considering the complexity of policy and the diversity of organisations across Finland – and the European Union, legislators are in a rush to implement the new requirements of the directives into the national legislation. Based on my studies the involved actors recognised the various challenges in the implementation and adaptation processes. There were also expectations that the policy will drive learning and innovation among organisations. Currently, legislation is the major driving factor in the development of plastic recycling and EPR schemes can be a robust legislative tool in attaining the targets, when developed and maintained accordingly.

The aim of the study was to investigate cornerstones of a communications strategy for a start-up specializing to wood-based packaging materials. These include packaging materials, which are produced in a sustainable way and decrease environmental load with their biodegradability. These cornerstones are basis for a globally profitable and competitive business. Literature review and qualitative interviews were used as a method. The circular economy business model enables a new way to operate and generate competitive advantage for a start-up. The plastics industry claims biodegradability of some forms; the communication challenge of the competitors is to prove these arguments false. Launching world-wide renewable wood-based packaging material to consumers and to packaging industry requires co-operation between all stakeholders. To be a true alternative to plastics, the product must be based on sustainability principles, recyclability and compostability. To avoid greenwashing, all communication must be based on reliable and verifiable information. The developed communications strategy addresses all the aforementioned challenges. The communications strategy focuses on younger generation consumers and rely on their ability to utilize social media in their communications. A circular economy start-up company must outperform plastics packaging manufacturers economically, environmentally and socially with sustainable packaging solutions. Nevertheless, based on this thesis, sustainability is a valid selling and communications argument. The interviews conducted by this thesis support this finding.

The importance of the computer and information technology has increased significantly with the introduction of the Internet. The technologies should not be reduced to selling and purchasing functions but should also be used as research and business intelligence tool, as well as information source. This study compares the performances of the Finnish and German sawmilling & paper industry by evaluating their public communication. The forest sector has been traditionally important for the economy of both countries and they belong to the global players. In conjunction with the performance analysis, a neural network tool is compiled, optimized and tested. It combines a study related categorization application and the Kohonen’s self-organizing map (SOM). The objective of the automated categorization is to lower manual work and to evaluate text contents more accurately – by taking also the possible future use into account. The research includes two interlinked approaches: web page and performance analysis. The web page analysis compares the design and content of the forest industry companies’ Internet sites. In addition, it is used to select and define the relevant enterprises for the performance analysis. 14 Finnish and 10 German sawmills, as well as 5 Finnish and 12 German paper and paperboard producers fulfilled the research requirements (data collection 2013). The performance analysis is implemented by a content analysis and SOM Tool. The word count data of the content analysis is sorted with a customised classification frame based on the Global Reporting Initiative Guideline and evaluated with the SOM. The SOM algorithms reduce multidimensional, large and complex data to lower dimensional maps which visualizes the distribution of the companies’ performance categories. The results indicate that the business cultures of the selected companies are similar. A closer examination reveals that the clustering by sector is more emphasized that by country. The more detailed determination of the SOM divides the paper sector further by their origin. Most obvious are the differences between sawmill and Finnish paper industry. The sawmill sector highlights especially product, service and macro-environment related aspects. Small German sawmills emphasized further tradition and history The paper sector stressed social responsibility, corporate structure, external activities and environmental issues. Inside the paper sector, the Finnish companies point out corporate strategy, development, organizational profile categories and economical performances. The German paper sector highlights in particular environmental issues and public relation. The web page analysis and related studies evaluate the corresponding categories similarly to the present research and thus support the results of the SOM approach.

Corporate social responsibility and sustainability have become increasingly important in modern business practices. The purpose of this study was to examine the corporate social responsibility (CSR) and sustainability practices and perceptions of small and medium-sized forest products companies in North Carolina (NC). These companies have less than 500 employees and most of the forest products companies operating in NC fall into this category. Research was carried out in two parts: first by conducting a content analysis of 22 websites of NC companies and second by conducting twelve semi-structured in-depth interviews with different company representatives to gain a deeper understanding of the practices and perceptions. The most frequently mentioned aspect in the websites was sustainability (48.6%), followed by CSR (19.8%). Most often mentioned CSR practices from the websites were safety and promotion of responsible forestry. Interviews identified social aspects of CSR as the most important for respondents. This is interesting since, according to earlier research, the forest industry tends to emphasize environmental aspects. The main drivers for CSR and sustainability were the owners and, to some extent, customers. Other stakeholders were not identified as important drivers. Interviews revealed that the company size is not really a defining aspect on implementation of CSR and sustainability, but it is instead a company specific initiative. Identifying and describing these effective patterns and practices of CSR and sustainability could help other small businesses create competitive advantages in forest products marketing. These practices can then be used as building blocks for sustainable and responsible business strategy.

Biological diversity has been decreasing since industrial revolution, and the loss of biodiversity has become a com-mon topic in different groups from environmental organizations to consumers worldwide. Different goals for biodiver-sity conservation have been set both at the global and domestic level, but the continuous postponement of the tar-gets indicates that the government institutions establishing rules for protecting biodiversity are no longer sufficient, and new methods must be developed. One way how biodiversity can be protected is different ecological compensa-tion mechanisms. Ecological compensation is a process where project developers compensate for conservation efforts by creating ecologically equivalent profits or credits elsewhere. Globally, different ecological compensation mechanisms have been used for a long time as a part of nature conser-vation activities. In many countries, these activities are often based on legislation and regulations, such as in the US, Australia, and Germany. Additionally, every EU member state belongs to Natura 2000 network, where various com-pensation regulations have been implemented by the EU’s Habitat Directive. Voluntary-based compensation activi-ties on the other hand are newer way to protect nature and this study focuses on the use of these voluntary activities in Finland. One target group of potential users of ecological compensation mechanisms in Finland are companies that weaken or use different natural resources in their operations. Each company undertakes environmental responsibility in different ways, but ecological compensation as a way to conserve nature could be a powerful tool for companies to show their environmental responsibility. The aim of this study is to determine companies' perspectives on voluntary ecological compensation and analyze critical factors that affect companies’ willingness to participate in voluntary compensation projects in Finland. Three main objectives of this research include: 1) identifying the attractiveness of voluntary ecological compensation from private companies’ perspective 2) defining the most attractive compensation mechanisms and structures from the companies’ point of view and 3) further analysis of the risks and opportunities affect target companies that partici-pate in voluntary compensation projects. This study was conducted by using a qualitative research method. Re-search material was collected in the meetings with companies by using the participant observation mechanism. Study results highlighted, that the attractiveness of ecological compensation is based on multiple different factors that companies consider as important and which should be included in the compensation project. These factors are such as specific location of compensation area and certain ecosystem services in the compensation area. Most importantly, compensation must be related to companies’ operations at some level. Businesses do not get involved if the projects are not targeted to them, and especially if those are not approved by the relevant stakeholders.

This study optimizes the management regime of boreal Norway spruce (Picea abies (L.) Karst.) and Scots pine (Pinus sylvestric L.) stands. The aim is to compare the economic profitability of continuous cover management and clearcut management and to study the hypothesis that continuous cover forestry is more favorable in the case of Norway spruce, compared to Scots pine. Additionally, the study analyses the outcomes of two different growth models for these tree species and compares the results with the requirements of the Finnish Forest Act of 2014. Earlier studies comparing the suitability of Norway spruce and Scots pine to continuous cover forestry have applied unclear model specifications and unnecessary limitations in the optimization methods. In this study, the optimization is carried out using a theoretically sound economic optimization model that determines the choice of the management regime as an outcome of the optimization. The model uses empirically estimated ecological growth models and includes both fixed and variable harvesting costs. Two different empirically estimated ecological growth models are used and compared. The optimization model is solved as a bi-level problem where harvest timing is the upper-level problem and harvesting intensity the lower-level problem. The optimization is solved using gradient-based methods for the lower-level problems and genetic and hill-climbing algorithms for the upper-level problems. This is the first study using this method to solve optimal continuous cover solutions for Scots pine. The results show that the main differences in optimal solutions between the two species are independent of the ecological two growth models used. According to both ecological models, continuous cover forestry is less favorable for Scots pine compared to Norway spruce, in both low and average fertility sites. However, the magnitude of this favorability and the characteristics of the optimal solutions strongly depend on the ecological model. Optimal continuous cover solutions for Scots pine are also found to have very low stand densities. Almost all economically optimal solutions are illegal because of their low number of trees or basal area per hectare.