Abstract

Hugosson, M. & McCluskey, D. 2008. Strategic transformations of the Swedish sawmill sector 1990-2005. Studia ForestaliaSuecia 217. 33 pp. ISSN 0039-3150, ISBN 978-91-85911-96-7.Prescriptive strategy theories have previously led to conclusions that sawmilling firms lack strategy. However, by usingAnsoff’s (1979) explorative capability approach, we contribute the finding that the Swedish sawmilling sector underwentthree unobserved strategy transformations between 1990 and 2005. These transformations, their triggers and outcomes were:Market channel strategy transformation. The shock of poor financial results in the “unexpected” downturn of the early 1990striggered a break with traditional agents, who had been the sector’s sole market channel. Instead, firms established their ownmarket channels, and built direct relationships with customers. Product value adding strategy transformation. Informationabout customers’ needs triggered a transformation in the sector’s offerings - from wet commodities to specified goods, whichwere of higher value to customers. This involved firms enhancing their production capabilities in the mid 1990s. Service valueadding strategy transformation. Triggered by perceived new SCM opportunities, firms enhanced their distribution logisticscapabilities around 2000 so that they could offer customers specific logistics and distribution services.These three strategy transformations occurred in all sampled firms. Each firm had strategy nuances, regarding its choice ofcustomers and its offerings. The findings also reveal that establishing customer relationships was a key development: product andservice value adding strategy transformations were often facilitated by cooperating with customers. Moreover, customerinteractions provided a basis for managers to increasingly see the unique value of their firm’s particular resources and capabilities;and, focus their business activities on customers who specifically value those attributes. This new interpretation of sawmill firmstrategy applied researchers to assess contemporary theoretical debates, and select analytical frameworks that can give newinsights into actual practices

Keywords

strategy; strategy transformation; sawmill firms; matching customers with resources

Published in

Studia Forestalia Suecica
2008, Volume: 217, number: 219
ISBN: 978-91-86197-76-6
Publisher: Faculty of Forestry, Swedish University of Agricultural Sciences

SLU Authors

• Hugosson, Mårten

  • Department of Forest Products, Swedish University of Agricultural Sciences
    

• Mccluskey, Denise

  • Department of Forest Products, Swedish University of Agricultural Sciences
    

UKÄ Subject classification

Social Sciences
Forest Science
Economics and Business


Permanent link to this page (URI)

https://res.slu.se/id/publ/22155