Synthesis towards Future-Fittest for mature forest sector multinationals

Abstract

The circular bioeconomy represents a societal paradigm shift and transition challenge that inevitably influences how companies act in their evolving operational environment. The disruptive features may be particularly difficult to foresee, and tackle strategically, in companies with long-term operations and a relatively stable marketplace position, such as firms operating in the forest sector. Here we consider large forest sector companies in a circular bioeconomy sphere and scrutinize opportunities to hasten their socio-technical transition pathway with a combination of open foresight and open innovation activities. We present a synthesis drawn from contemporary strategic business management literature and adapt that to forest sector multinationals. A greater openness to the actors, knowledge, and expertise outside the forest sector may be an essential element of successful bioeconomy transition for incumbent forest sector firms. This requires leadership to shift culture and an investment in the skills and expertise held by company employees. Increased investment in human capital and embracing a broader network of collaborators may pave the way for forest industry companies towards sophisticated corporate foresight and open innovation, corresponding to Future-Fittest status.

A geography-based decision support tool to quantify the circular bioeconomy and financial performance in the forest-based sector (r.forcircular)

“…Of these, the majority focus on literature reviews debating the impact of deadwood conservation in public forests (Chisika et al 2021), the definition of commercially viable products (Brandão et al 2021), biomass and bioresidual availability in forest areas (Kumar et al 2021;Gregg et al 2020) or the innovative application of wood products (Baldwin 2020;Wenger et al 2020). Other studies investigate novel business or socio-technical models important for the transition to a circular bioeconomy in the forest-based sector (Näyhä 2021; Hansen et al 2021).…”

Reviewed Commentary: Factory-Grown Wood, the Future of Forestry?

“…Corporate foresight informed perceptions of the future can complement innovation management, helping to identify the "right" innovation pathways to pursue. Improved innovation management and corporate foresight may be essential ingredients for successful transition of forest sector companies to the circular bioeconomy (Hansen et al 2021), and navigate changes tied to development of FGW. While the largest global forest sector companies may be nurturing corporate foresight capabilities, there is little evidence suggesting that it is common practice (N€ ayh€ a 2020).…”

Defining the systemic development of the Finnish pulp and paper industry’s business network

“…These external pressures, together with a company's internal pressures such as competition between different business functions, can be change signals that result in adaptations within companies (Laurila and Lilja 2002), and thus, managers should be able to notice them. Using insights from open foresight and open innovation could lead to being better prepared for the future and being the "future-fittest" (Hansen et al 2020). Therefore, the sustainability transition creates many challenges and opportunities for the pulp and paper industry and its business network's development when planning bioeconomy-related future-oriented strategies aimed at creating sustainable competitive advantage.…”