Darko Motik

Deconstructing Innovation : An Exploratory Study of the US Furniture Industry

The Merriam-Websters dictionary defines innovation as (1) the introduction of something new or (2) a new idea, method, or device. Many empirical studies suggest that innovation is an important driver for developing or maintaining firm competitiveness. Innovation has been linked to improving products, production processes, supply chain efficiencies, market research, customer retention, business systems, relationships with exchange partners, profitability, and competitiveness. But how does it work? How can innovation be measured? In this study, we examined innovation in the US furniture industry. First, we deconstructed innovation into three broad categories: product, production processes, and company culture. Second, we examined relationships between the innovation subcomponents and the internal/external demographic characteristics of company size, company location population, age of employees, and education level of employees. Results show that although we were able to develop the three innovation constructs, only 25 percent of their hypothesized relationships to demographic factors followed hypothesized patterns of significance or directionality.

The status of chain-of-custody certification in the countries of Central and South Europe

The significance of wood and paper products originating from certified sustainable sources has been increasing worldwide during the last two decades paralleling overall interest and concern for global sustainability issues. Forest certification is a voluntary verification tool that has been gaining importance not only as an independent verification tool in the wood processing industry but also as an influencer in private and public purchasing policies and as a component of emerging wood harvesting and trade legality schemes. There are two main types of certification, forest certification for forest management and chain-of-custody (CoC) certification which tracks certified wood through the manufacturing supply chain. This study focuses on the chain-of-custody component. A multinational survey of CoC certificate holders in Slovakia, Czech Republic, Poland, Slovenia, Croatia and Serbia was conducted to identify the general understanding of certification concepts as environmental, economic and social tools, to determine incentives for CoC certification implementation by companies, and to identify difficulties in existing certified wood product supply chains. Results indicate that respondents demonstrated a high level of understanding of the chain of custody certification concept. Respondents also link forest certification mainly to the issues of legality, tracing the origin source of supply and prevention from illegal logging. The main expected benefits are linked to the improvement of external company image followed by business performance factors such as penetrating new markets, increase of sales volume, expanded market share and the increase of profit margin. The key problems connected to certified supply chains relate to the overpricing of certified material inputs, while respondents reported none or minimum price premiums for their certified products over non-certified alternatives.