Innovation Strategy in Slovak Forest Contractor Firms—A SWOT Analysis

Abstract

Abstract:The aim of the study is to determine the innovation strategy of contractor firms in the Slovak forestry service sector in the area of further innovation activities development. The strategy identification was based on the analysis of the strengths, weaknesses, opportunities and threats in this sector. The results indicate that weaknesses of contractor firms exceed their strengths and, considering the degree and importance of their impact, opportunities exceed identified threats. Based on these findings revealing the relations in the area of innovation activities of forestry service contractors, the "Strategy of Partnership" was suggested as the most suitable type of strategy. It can be concluded that such a form of grouping cooperation brings many benefits to contractors in the form of information availability, guidance, training, and management of conflicts, risks and uncertainty, which are associated with the innovation process.

A Course of Innovations in Wood Processing Industry within the Forestry-Wood Chain in Slovakia: A Q Methodology Study to Identify Future Orientation in the Sector

“…Outdated and worn equipment that does not meet the requirements of modern technology and has a negative impact on the environment as well as the lack of funds is considered a major cause of this state [25,44]. Different views of both group of respondents are also supported by findings of Haluza [66] who states that the situation in the Slovak wood processing working industry is currently associated with a significant transformation.…”

“…This is mainly valid for big companies that support mainly technological innovations aimed at purchase of new technologies. Small companies represented by entrepreneurs, however, perceive new technology innovations in a more negative way as they, as stated by Šterbová [25,34] are mainly subcontractors of foreign wood processing and trading companies with weak negotiation power. Due to this reason the enormous innovations are not typical in this industry segment and changes are usually applied as moderate changes of applied technologies in order to meet specific requirements of customers.…”

“…As presented by Šterborá et al [25], the best way how to eliminate the identified differences in attitudes to innovation in forestry-wood chain is to use the existing opportunities, such as for example availability of financial loans, different supporting programs as well as cooperation with all stakeholders known as the strategy of partnership that could represent a long-term strategy for this sector. Therefore, such cooperation can be defined as the common denominator for the innovation development.…”

“…As for the situation in forestry sector Šterbová et al [25] state that current machinery of contractors is old and worn out and does not meet the needs for the development of modern technology and therefore has a negative impact on the environment. A lack of financial resources can be considered as the main cause of this situation [26].…”

The Effect of Customer–Contractor Alignment in Forest Harvesting Services on Contractor Profitability and the Risk for Relationship Breakdown

“…The scope could thus be broadened to cover aspects omitted in the current study. For instance, strategies and expectations for the innovation processes required for continuously improved performances both influence and are influenced by the relationships between costumer and contractor [44,45]. Thus, alignment within, for instance, those aspects could also be included in future analyses.…”