Size matters – an analysis of business models and the financial performance of Finnish wood-harvesting companies
The size of Finnish wood harvesting enterprises has grown, and entrepreneurs have become responsible for various additional tasks, resulting in networking with other harvesting enterprises of various sizes and suppliers of supporting services, but the profitability of the wood harvesting sector has...
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ftdoajarticles:oai:doaj.org/article:aa7446496d9c490abef9f6b892f6b5bc 2023-05-15T17:42:38+02:00 Size matters – an analysis of business models and the financial performance of Finnish wood-harvesting companies Jylhä, Paula Rikkonen, Pasi Hamunen, Katri 2020-01-01T00:00:00Z https://doi.org/10.14214/sf.10392 https://doaj.org/article/aa7446496d9c490abef9f6b892f6b5bc EN eng Finnish Society of Forest Science https://www.silvafennica.fi/article/10392 https://doaj.org/toc/2242-4075 2242-4075 doi:10.14214/sf.10392 https://doaj.org/article/aa7446496d9c490abef9f6b892f6b5bc Silva Fennica, Vol 54, Iss 4 (2020) Forestry SD1-669.5 article 2020 ftdoajarticles https://doi.org/10.14214/sf.10392 2022-12-31T08:34:33Z The size of Finnish wood harvesting enterprises has grown, and entrepreneurs have become responsible for various additional tasks, resulting in networking with other harvesting enterprises of various sizes and suppliers of supporting services, but the profitability of the wood harvesting sector has remained low. In the present study, the financial performance of 83 wood harvesting companies in Eastern and Northern Finland was evaluated, based on public final account data from a five-year period between 2013 and 2017. The factors underlying economic success were identified based on 19 semi-structured entrepreneur interviews. The Business Model Canvas framework was applied in the analyses. In particular, the smallest companies (with an annual turnover of less than 600â000 â¬) struggled with profitability. They showed increasing indebtedness, suffered from poor power in negotiations, had typically short-term contracts, and faced difficulties in retaining skilled operators. Most of the small companies were subcontractors of larger wood-harvesting companies. The better economic success of larger companies was likely based on their capacity to provide wood harvesting services in large volumes and supply versatile services, power in negotiations, and more cost-effective operations. The future development of wood harvesting seems to be polarised: larger enterprises are likely to continue growing, while the size of smaller enterprises has stabilised. Enhancing business management skills and practices is required in enterprises of all size groups. Article in Journal/Newspaper Northern Finland Directory of Open Access Journals: DOAJ Articles Silva Fennica 54 4 |
institution |
Open Polar |
collection |
Directory of Open Access Journals: DOAJ Articles |
op_collection_id |
ftdoajarticles |
language |
English |
topic |
Forestry SD1-669.5 |
spellingShingle |
Forestry SD1-669.5 Jylhä, Paula Rikkonen, Pasi Hamunen, Katri Size matters – an analysis of business models and the financial performance of Finnish wood-harvesting companies |
topic_facet |
Forestry SD1-669.5 |
description |
The size of Finnish wood harvesting enterprises has grown, and entrepreneurs have become responsible for various additional tasks, resulting in networking with other harvesting enterprises of various sizes and suppliers of supporting services, but the profitability of the wood harvesting sector has remained low. In the present study, the financial performance of 83 wood harvesting companies in Eastern and Northern Finland was evaluated, based on public final account data from a five-year period between 2013 and 2017. The factors underlying economic success were identified based on 19 semi-structured entrepreneur interviews. The Business Model Canvas framework was applied in the analyses. In particular, the smallest companies (with an annual turnover of less than 600â000 â¬) struggled with profitability. They showed increasing indebtedness, suffered from poor power in negotiations, had typically short-term contracts, and faced difficulties in retaining skilled operators. Most of the small companies were subcontractors of larger wood-harvesting companies. The better economic success of larger companies was likely based on their capacity to provide wood harvesting services in large volumes and supply versatile services, power in negotiations, and more cost-effective operations. The future development of wood harvesting seems to be polarised: larger enterprises are likely to continue growing, while the size of smaller enterprises has stabilised. Enhancing business management skills and practices is required in enterprises of all size groups. |
format |
Article in Journal/Newspaper |
author |
Jylhä, Paula Rikkonen, Pasi Hamunen, Katri |
author_facet |
Jylhä, Paula Rikkonen, Pasi Hamunen, Katri |
author_sort |
Jylhä, Paula |
title |
Size matters – an analysis of business models and the financial performance of Finnish wood-harvesting companies |
title_short |
Size matters – an analysis of business models and the financial performance of Finnish wood-harvesting companies |
title_full |
Size matters – an analysis of business models and the financial performance of Finnish wood-harvesting companies |
title_fullStr |
Size matters – an analysis of business models and the financial performance of Finnish wood-harvesting companies |
title_full_unstemmed |
Size matters – an analysis of business models and the financial performance of Finnish wood-harvesting companies |
title_sort |
size matters – an analysis of business models and the financial performance of finnish wood-harvesting companies |
publisher |
Finnish Society of Forest Science |
publishDate |
2020 |
url |
https://doi.org/10.14214/sf.10392 https://doaj.org/article/aa7446496d9c490abef9f6b892f6b5bc |
genre |
Northern Finland |
genre_facet |
Northern Finland |
op_source |
Silva Fennica, Vol 54, Iss 4 (2020) |
op_relation |
https://www.silvafennica.fi/article/10392 https://doaj.org/toc/2242-4075 2242-4075 doi:10.14214/sf.10392 https://doaj.org/article/aa7446496d9c490abef9f6b892f6b5bc |
op_doi |
https://doi.org/10.14214/sf.10392 |
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Silva Fennica |
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54 |
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4 |
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