The building of a value based chain
The next frontier of value creation for businesses may lie in finding ways to combine economical, social and environmental sustainability to preserve and protect natural resources. Nowadays, incorporation of sustainability values in core operations is not only seen as a part of sustainable develo...
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| Formato: | Second cycle, A2E |
| Lenguaje: | sueco Inglés |
| Publicado: |
2015
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| Acceso en línea: | https://stud.epsilon.slu.se/8300/ |
| Sumario: | The next frontier of value creation for businesses may lie in finding ways to combine
economical, social and environmental sustainability to preserve and protect natural resources.
Nowadays, incorporation of sustainability values in core operations is not only seen as a part
of sustainable development, but also as a successful strategy for companies. This is especially
critical for the forest sector, as it is dealing with one of the Earth’s most crucial natural
resources. However, creating new kinds of value chains and business models to achieve
systemwide value, have shown to be complicated. Much work remains in an effort to explain
how value based forest products chains can be structured and managed in order to
successfully connect them to global markets, while at the same time maintain that
sustainability values are met. This especially concerns value based, small-scale sawn wood
chains, which have gained very little attention in business management literature.
The aim of this study is to explain the development of a small-scale, value based sawn wood
value chain. This is done by focusing on enabling factors, which can explain the functioning
of the value chain. To reach the aim, a case study has been carried out on a Forest
Stewardship Council- and Fairtrade certified sawn wood value chain, originating from forest
owners in Chile and reaching secondary manufacturers in Sweden. A field study was
performed in Chile during fall 2014 and a flexible method has been used. The conceptual
framework of the study consists of value chain theory, sustainable supply chain management
and sustainable partnership theory.
Empirical results show that the value chain structure and business model of the Curacautín
value chain are closely related to each other. Relatively few stakeholders are involved in the
studied stages of the chain. The chain is of a relational governance type, where trust and
personal relations govern complex transactions. The sustainability attributes of the wood
products, as well as the stakeholders’ engagement to sustainability values, are perceived as
strong enabling factors for the functioning of the chain, by interviewed respondents.
However, lack of demand and low production capacity are perceived as constraints. The
structure of the value chain differs from previous studied sawn wood value chains, by the
relational governance, a more market-oriented focus and a shorter value chain.
Considering the intangible nature of the unique attributes of the wood products as well as the
chain; the findings show that integration and two-way communication should be critical for
the chain. Thus, it is critical that all stakeholders in the chain can “tell the story behind the
wood”; to transmit the brand’s sustainability attributes. Also, that the structure of the chain
sustains the sustainability attributes all along the chain. In contrast to previous theory, this
study suggests that not only marketing but also procurement and certification processes
should be seen as key primary activities in the value chain, creating the unique value added
attributes. In addition to the elements that are suggested as critical for sustainable partnerships
according to previous literature, findings in this study indicate that also mutual sustainability
values appear to explain collaborations. The mutual sustainability values appear to imply
patience, which should be critical considering numerous challenges. In the short term, the
stakeholders might perceive that their engagement brings benefits such as communication of a
sustainability engagement and/or risk reduction related to sourcing. In the long term, the
stakeholders appear to engage due to a perceived responsibility and an intention to try to have
an impact on the political order in society. |
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