Innovativeness in the forest products industry

Abstract

Although innovation has long been accepted in the business literature as instrumental to company success, very little research has been done specific to the forest products industry. This qualitative study looks at small forest products firms in Alaska and Oregon to develop a basic understanding of their concept of innovation and innovativeness. Interviews were conducted in 17 small companies ranging in size from 1 to 60 employees. The literature suggests that innovation can be divided into product, process, and business system innovation. Findings are consistent with this view. Of the seven concepts of innovation identified by respondents in this study, the most common was having a unique product or process. Six of the seven identified concepts logically correspond with product, process, or business systems innovation. The seventh, "a way of thinking," is an umbrella concept that describes the collective personality of individuals in the firm and the firm's ability to be innovative. With respect to the product innovation process, we identified six steps of product development practiced by the respondents. However, generally the respondents did not undertake consistent, structured processes for product development.