Anni Tuppura

Proactiveness and Corporate Social Performance in the Global Forest Industry

SUMMARY Companies involved in natural resource extraction, such as forestry, have a profound impact on the environments in which they operate. Therefore, active engagement in corporate social responsibility (CSR) by managing close relationships with key stakeholder groups, i.e., governments, communities, environmental NGOs, and employees have become necessary to maintain their social license to operate. In this paper, we test the hypothesis that proactiveness has a positive influence on the companys corporate social performance (CSP). Proactiveness can act as a stance towards CSP, and further it may be a precondition to gain a competitive advantage by investing in CSR. International survey data from managers in 60 forest industry companies in different continents is used to empirically test the hypothesis. A positive impact of companys proactiveness on CSP was found using the regression analysis. Results also show that employees and managers in a proactive company more often take the initiative to improve their CSP compared to the employees and managers in less proactive companies.

Emerging market patterns in the recycled paper trade

The international recovered paper trade serves two important functions: increasing raw material availability in the paper and board industry and providing economic incentives to recycle. The purpose of this paper is to shed further light on emerging patterns in this trade by empirically analysing the changes in the bilateral trade flows of recycled paper between 1992 and 2008. According to our estimations, two important changes occurred in the 1990s and 2000s. First, the growing importance of developing economies in global recycled paper trade plays a significant role in import demand as a determinant of trade flows. Second, the changes in global trade patterns necessitate investigating the transportation cost measures used in applied research.

Structural changes and effects of R&D investments in the pulp and paper industry

This study examines the strategic investment choices made in pulp and paper industry (PPI) within the last two decades. We first describe investments, initiated projects, and closures of pulp and paper mills and profitability of the 22 largest pulp and paper companies in North America, Western Europe and Japan. We then examine the development and impact of R&D investments by comparing the timing of R&D investments with changes in profitability. The results indicate that the relationship between R&D and profitability is company specific. Our findings indicate further that the logic of R&D investment differs across firms; in some companies, changes in profits cause changes in the R&D investment level, whereas in others the opposite holds. It also seems that the sample companies have not actively sought new market opportunities through innovation activity, but rather by geographical re-location of production.

Winning by timely market entry

This empirical study explores the relationship of the appropriability regime and the market-entry timing orientation of the firm. In detail, the paper studies the effect of entry-timing orientation on the firms innovation performance and profitability in different appropriability regimes. The study employs a survey data collected from 299 Finnish firms. The results indicate that the appropriability regime determines the firms possibility to gain competitive advantage related to entry timing. The firms orientation to move early did not appear to explain the firms performance by itself. According to the results, the first-mover-oriented strategy was profitable only when it was employed in a tight appropriability regime. The study contributes to the literature of first-mover advantage, and is relevant for both the academics and managers.

Corporate social and financial performance in different industry contexts: the chicken or the egg?

Purpose - The purpose of the paper is to examine empirically Granger causality relationships between corporate social performance (CSP) and corporate financial performance (CFP) in four different industries. Design/methodology/approach - The paper uses the Granger causality test to analyse the causality relationships between CSP and CFP in clothing, energy, food and forest industries in the USA. The panel data used combined CSP and CFP measures over the years 1991-2009. CSP strengths and concerns are handled as distinct constructs. Findings - There is some evidence of bidirectional causality between CSP and CFP in the clothing, energy and forest industries; but in the food industry, CSP appears not to Granger-cause CFP. The results encourage accounting for the industry in empirical analyses, as well as the use of more than one measure for CFP in the analyses. Originality/value - The direction of causality between CSP and CFP has been specifically addressed in only a few studies. Because the causality relationship may, in addition, be concealed when multi-industry data are used, this paper contributes to the literature by examining the Granger causality between CSP and CFP in four different industry contexts using two different measures of CFP.

Mapping the evolution of corporate social responsibility – insights from the Finnish forest industry

The number of companies engaging in corporate social responsibility (CSR) has increased significantly. However, the ways in which CSR is understood and practised are strongly dependent on contextual characteristics, such as the industry. The objective of this study is to map the evolution of CSR in the Finnish forest industry. Drawing from thematic interviews with selected participants and from environmental and CSR reports, the underlying factors and stakeholders that have influenced the development of CSR at different times are identified. The findings indicate that there are four main areas in the evolution of CSR, during which the emphasis of different elements of CSR has varied. The stakeholder groups driving CSR have turned from authorities and trade unions to local communities, non-governmental organisations and customers. Managers may find the results useful when analysing the development of CSR practices and the role of stakeholders in this development.

Internal and external factors of competitiveness shaping the future of wooden multistory construction in Finland and Sweden

Abstract In transitioning to a renewable material-based bio economy, growing public and industry interest is apparent for using wooden multistory construction (WMC) as a sustainable urban housing solution in Europe, but its business implications are not well understood. In our study, we evaluate, which internal and external factors of competitiveness are shaping the future of WMC, especially in the context of Finland and Sweden. Based on a multi-level perspective of socio-technical transitions, we conducted a three-stage dissensus-based Delphi study. The identified internal and external factors affecting the future competitiveness of the WMC business emphasize the importance of skilled architects and builders and the role of standardized building systems. Based on our results, the key aspects influencing the future competitiveness of WMC in the region are related to the development of technical infrastructure and project-based business networks, while additional changes in regulatory framework are perceived as less important. We conclude that towards 2030, the strong cognitive rules founded in the concrete-based building culture in these countries is likely to inhibit the dynamics of the socio-technical regime level. A change is also needed in the WMC business culture towards more open cross-sectoral collaboration and new business networks between different-sized players.