Sources of competitive advantage in woodworking firms of Northwest Russia

Author(s):

Anne Toppinen (Finnish Forest Research Institute, Joensuu, Finland)

Ritva Toivonen (Pellervo Economic Research Institute, Helsinki, Finland)

Antti Mutanen (Finnish Forest Research Institute, Joensuu, Finland)

Vadim Goltsev (Finnish Forest Research Institute, Joensuu, Finland)

Natalia Tatti (University of Helsinki, Helsinki, Finland)

Citation:

Anne Toppinen, Ritva Toivonen, Antti Mutanen, Vadim Goltsev, Natalia Tatti, (2007) "Sources of competitive advantage in woodworking firms of Northwest Russia", International Journal of Emerging Markets, Vol. 2 Iss: 4, pp.383 - 394

DOI

http://dx.doi.org/10.1108/17468800710824527

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Acknowledgements:

The authors grateful for two anonymous reviewer for their insightful comments on the manuscript. Any remaining errors are their own.

Abstract:

Purpose

– The existing literature emphasizes the strategic choices of core competencies/capabilities based on intangible and tangible resources, and the combination of these as the base for developing firm‐level strategies. However, little is known about the organizational structure, strategic orientation, and future goals of woodworking firms in the East‐European countries in transition. This paper aims to produce information contributing to these information needs regarding Northwest Russia (NWR).

Design/methodology/approach

– The largest potential increase in both production of and demand for wood products is in Russia, and this paper examines the issue in a case study of 18 small‐ and medium‐sized wood industry companies in NWR using thematic semi‐structured personal interviews.

Findings

– The results indicate that closeness to the main markets, good logistics connections and access to large markets, i.e. other than raw‐material related factors, are the main perceived sources of competitive advantage among the Northwest Russian woodworking firms. Intangible resources are valued over tangible assets in case companies.

Practical implications

– The companies target to shifting their production from commodity products, towards more specialized products and focusing on increasing the exports to the European Union. This is likely to intensify competition in the international markets for wood products in the future.

Originality/value

– The paper provides new information about forest industry small and medium‐sized wood industry enterprises and their current business environment in NWR.

Keywords: 

Wood products, Forestry, Competitive advantage, Small to medium‐sized enterprises, Russia

Type:

Case study

Publisher:

Emerald Group Publishing Limited

Copyright:

© Emerald Group Publishing Limited 2007
Published by Emerald Group Publishing Limited

For further information log on website :
http://www.emeraldinsight.com/doi/abs/10.1108/17468800710824527