Business Transformation in the British Columbia Forest Industry
Keywords:
Forest industry, business transformation, strategy, executive perceptionsAbstract
This study aims to define the emerging concept of firm-level business transformation from the perspective of British Columbia-based forest sector executives, and to investigate its drivers, enablers, and barriers. The ten executives interviewed for the study generally defined transformation as the execution of different business strategies with the purpose of delivering significant performance improvement to the firm. Both strategic and operational changes could be considered transformational, depending on their impact over time. However, the executives stressed that operational efficiency should be used in combination with one of six other strategies, such as diversification of the product mix, entry into the bio-economy, sustained growth, market diversification, diversification of the geographic base of operations or adoption of a customer-driven focus. Transformational changes were initiated both to respond to market challenges, such as volatility and competition, and to take advantage of emerging opportunities. Several factors could serve as either enablers of or barriers to change: access to financial resources (or lack thereof), leadership, managers’ and employees’ attitudes toward change, and government policy. The risks associated with large capital outlays could be mitigated through benchmarking, collaboration, and careful timing. Drawing upon the scholarly business management, applied business management, and forest products business literatures, this study provides new insight into the emerging concept of business transformation.References
Amburgey, T.L., Kelly, D., & Barnett, W.P. (1993). Resetting the clock: The dynamics of organizational change and failure. Administrative Science Quarterly 38(1), 51–73.
Babbie, E.R. (2004). The Practice of Social Research (10th ed., p. 640). Belmont, CA: Tomson/Wadsworth.
Barbero, J.L., Martínez, J.A., & Moreno, A.M. (2018). Should declining firms be aggressive during the retrenchment process? Journal of Management XX(X), 1–32. https://doi.org/10.1177/0149206318811563
Barker, V.L.I., & Duhaime, I.M. (1997). Strategic change in the turnaround process: Theory and empirical evidence. Strategic Management Journal 18(1), 13–38. Retrieved from http://www.jstor.org/stable/3088193.
Barker, V.L., & Mone, M.A. (1994). Retrenchment: Cause of turnaround or consequence of decline? Strategic Management Journal, 15(5), 395–405. http://doi.org/10.1002/smj.4250150506
Barnett, W.P. (1994). The liability of collective action: growth and change among early telephone companies. Community Evolution 337–354.
Barnett, W.P., & Carroll, G.R. (1995). Modeling internal organizational change. Annual Review of Sociology 21(1995), 217–236.
BC Lumber Trade Council (2017). Industry Facts. Retrieved from https://bclumbertrade.com/facts
Berg, P., & Lingqvist, O. (2017). Pulp, Paper, and packaging in the next decade: Transformational change. Retrieved June 26, 2018, from https://www.mckinsey.com/industries/paper-and-forest-products/our-insights/pulp-paper-and-packaging-in-the-next-decade-transformational-change
Blackburn, S., Wood, C., Ryerson, S., Weiss, L., & Wilson, S. (2011). How do I implement complex change at scale ? McKinsey and Company (Insights into organization), 12.
Bogdanski, B.E.C. (2014). The rise and fall of the Canadian pulp and paper sector. The Forestry Chronicle 90(December), 785–793.
Braun, M., & Latham, S. (2012). Pulling off the comeback: shrink, expand, neither, both? Journal of Business Strategy 33(3), 13–21. http://doi.org/10.1108/02756661211224960
Butner, K. (2014). Creating a smarter enterprise: The science of transformation. IBM Global Business Services (Executive Report March), 24.
Chambost, V., McNutt, J., & Stuart, P.R. (2008). Guided tour: Implementing the forest biorefinery (FBR) at existing pulp and paper mills. Pulp and Paper Canada 109(7–8), 19–27.
Charmaz, K. (2006). Constructing Grounded Theory: A Practical Guide Through Qualitative Analysis. California: Sage Publications Ltd., Thousand Oaks.
Coffey, A., & Atkinson, P. (1996). Making sense of qualitative data: Complementary research strategies (1 edition, p. 216). SAGE Publications, Inc.
Cohen, D., & Nikolakis, W. (2012). Business Transformation for the Canadian Forest Sector. Working paper prepared for the Canadian Forest Service, Economics Branch. (p. 15).
Cohen, D., & Nikolakis, W. (2013). Changing Gears: Insight on Transformation in the North American and European Forest Sector (Webinar). Vancouver. Retrieved from http://mediasitemob1.mediagroup.ubc.ca/Mediasite/Play/f4869f807e4840d1a602c9c1d43dcc641d
Coleman, S., and Thomas, B. (2017). Introduction. In S. Coleman and B. Thomas (eds.) Organizational Change Explained (pp. 1-28). London: Kogan Page.
Davidson, W. H. (1993). Beyond re-engineering : The three phases of business transformation. IBM Systems Journal 32(1), 65–79.
Day, J.D., & Jung, M. (2000). Transformation Without a Crisis. McKinsey and Company (McKinsey Quarterly Number 4), 11.
Dewar, C., Blackburn, S., Nielsen, A.B., Irons, E., Scott, K., Meaney, M., … Wood, C. (2011). How do I transform my organization’s performance? McKinsey and Company (Organization Practice June), 15.
Flick, U., von Kardoff, E., & Steinke, I. (2004). A Companion to Qualitative Research (p. 432). SAGE.
Forest Products Association of Canada (2015). Forest Industry Applauds Committee Report on Transformation of Sector. Retrieved from http://www.fpac.ca/forest-industry-applauds-committee-report-on-transformation-of-sector/.
Given, L.M. (Ed.). (2008). The SAGE encyclopedia of qualitative research methods. Thousand Oaks, CA: SAGE Publications, Inc. Retrieved from SAGE knowledge. Web. 13 Mar. 2014.
Government of British Columbia. (2015). Responding to the Impacts of the 1999-2015 Mountain Pine Beetle Outbreak. Retrieved from https://www2.gov.bc.ca/gov/content/industry/forestry/managing-our-forest-resources/forest-health/forest-pests/bark-beetles/mountain-pine-beetle/responding-to-the-1999-2015-outbreak
Grace, P., Nelson, H., & Kozak, R. (2018). Understanding SME success in the value-added forest products sector: Insights from British Columbia. Bioproducts Business 3(9), 107–117.
Hannan, M. (2005). Ecologies of organizations: Diversity and identity. Journal of Economic Perspectives 19(1), 51–70. doi:10.1257/0895330053147985
Hannan, M., & Freeman, J. (1984). Structural inertia and organizational change. American Sociological Review 49(2), 149–164.
Hansen, E. (2014). Innovativeness in the face of decline: Performance implications. International Journal of Innovation Management 18(05), 1450039. http://doi.org/10.1142/S136391961450039X.
Hetemäki, L., & Hurmekoski, E. (2016). Forest products markets under change: Review and research implications. Current Forestry Reports 2(3), 177–188. http://doi.org/10.1007/s40725-016-0042-z
Isern, J., Meaney, M.C., & Wilson, S. (2009). Corporate Transformation Under Pressure. McKinsey and Company (Voices of Transformation 3), 10.
Jonsson, R. (2011). Trends and possible future developments in global forest-product markets-implications for the Swedish forest sector. Forests 2(1), 147–167. http://doi.org/10.3390/f2010147.
Kaplan, R.S., & Norton, D.P. (2008). The Execution Premium: Linking Strategy to Operations for Competitive Advantage (1st ed., p. 336). Harvard Business Review Press.
Kotter, J.P. (1995). Leading change: Why transformation efforts fail. Harvard Business Review (March-April), 59–67.
Kotter, J.P., & Schlesinger, L.A. (2008). Choosing strategies for change. Harvard Business Review 86(7/8)(July-August), 130–139.
MFLNRO. (2009). Moving Toward a High Value, Globally Competitive, Sustainable Forest Industry (p. 54). Retrieved from http://www.for.gov.bc.ca/mof/forestry_roundtable/
Mintzberg, H., & Quinn, J.B. (2002). The Strategy Process: Concepts, Context and Cases (4 edition, p. 489). Prentice Hall.
Natural Resources Canada. (2014). Innovation: Squeezing more value from trees (March, 2014). Canadian Forest Sector web site. Retrieved May 12, 2014, from http://www.nrcan.gc.ca/forests/innovation/13331
Natural Resources Canada. (2016). Pulp and Paper Green Transformation Program: Mission accomplished. Retrieved from https://www.nrcan.gc.ca/forests/federal-programs/13141.
Natural Resources Canada. (2018). Investments in Forest Industry Transformation (IFIT). Retrieved from https://www.nrcan.gc.ca/forests/federal-programs/13139.
Näyhä, A., & Pesonen, H.-L. (2014). Strategic change in the forest industry towards the biorefining business. Technological Forecasting and Social Change 81, 259–271. http://doi.org/10.1016/j.techfore.2013.04.014
Novotny, M., & Laestadius, S. (2014). Beyond papermaking: technology and market shifts for wood-based biomass industries - management implications for large-scale industries. Technology Analysis and Strategic Management 26(8), 875–891. http://doi.org/10.1080/09537325.2014.912789
Palma, C., Bull, G., Goodison, A., & Northway, S. (2010). Scenario Analysis: The Traditional and Emerging Canadian Forest Industry. FPAC Website (White paper (November 2010)), 29. Retrieved from http://www.fpac.ca/publications/Biopathways_WhitePaper-Scenario-Analysis_FINAL_Palma_et_al.pdf
Panwar, R., Vlosky, R., & Hansen, E. (2012). Gaining competitive advantage in the new normal. Forest Products Journal 62(6), 420–428.
Pätäri, S., Tuppura, A., Toppinen, A., & Korhonen, J. (2016). Global sustainability megaforces in shaping the future of the European pulp and paper industry towards a bioeconomy. Forest Policy and Economics 66, 38–46. http://doi.org/10.1016/j.forpol.2015.10.009
Pearce, J.A., & Robbins, K. (1993). Toward improve theory and research on business turnaround. Journal of Management 19(3), 613–636.
Pearce, J.A., & Robbins, D.K. (2008). Strategic transformation as the essential last step in the process of business turnaround. Business Horizons 51(2), 121–130. http://doi.org/10.1016/j.bushor.2007.11.003
Pettigrew, A.M. (1987). Context and action in the transformation of the firm. Journal of Management Studies 24(November), 649–670.
Robbins, D.K., & Pearce, J.A. (1992). Turnaround: Retrenchment and recovery. Strategic Management Journal 13(4), 287–309.
Schendel, D., Patton, G.R., & Riggs, J. (1976). Corporate turnaround strategies: A study of profit decline and recovery. Journal of General Management 3(3), 3–12.
Statistics Canada. (2018). Canadian Industry Statistics. Retrieved from https://www.ic.gc.ca/app/scr/app/cis/search-recherche#brwseinds
Tice, M., & Evans, J. (2014). Leadership for the Execution of Strategy. Palladium Group White Papers (White paper), 21.
Trahms, C.A., Ndofor, H.A., & Sirmon, D.G. (2013). Organizational decline and turnaround: A review and agenda for future research. Journal of Management 39(5), 1277–1307. http://doi.org/10.1177/0149206312471390
Zhang, Y., Toppinen, A., & Uusivuori, J. (2014). Internationalization of the forest products industry: A synthesis of literature and implications for future research. Forest Policy and Economics 38, 8–16. http://doi.org/10.1016/j.forpol.2013.06.017.
Downloads
Published
Issue
Section
License
Manuscripts published in the journal are open access and copyrighted according to the Creative Commons Attribution 4.0 International (CC BY 4.0) which requires attribution to the author, but can be readily shared and adapted. BioProducts Business allows the author(s) to retain publishing rights without restrictions.
