Strategic Positioning in a Turbulent Environment: An Empirical Study of Determinants of Performance in the North American Forest Industry
Abstract:This paper investigates the extent to which geographical and product diversification provide firms in the forest products industry of North America with means for coping with a turbulent environment. A turbulent environment is one where there is a high degree of uncertainty and sharp discontinuities; hence it is an unpredictable environment. The relationship between the firm's strategic positioning and performance is investigated. Six models relating various attributes of performance, including measures of risk, returns, and growth, to strategic positioning and other attributes of firms were estimated using regression equations. The results indicate that unrelated-product diversification and geographical diversification reduce risk, but at a significant cost in terms of performance, notably rate of return. Opportunities for related-product diversification that reduce risk are limited. Product differentiation and investment in new technology provide opportunities for increased returns and risk reduction. For. Sci. 37(3):903-923.
Document Type: Journal Article
Affiliations: Forest Economics and Policy Analysis Research Unit, The University of British Columbia, Vancouver, B.C., Canada V6T 1Z3
Publication date: 1991-08-01
More about this publication?
- Forest Science is a peer-reviewed journal publishing fundamental and applied research that explores all aspects of natural and social sciences as they apply to the function and management of the forested ecosystems of the world. Topics include silviculture, forest management, biometrics, economics, entomology & pathology, fire & fuels management, forest ecology, genetics & tree improvement, geospatial technologies, harvesting & utilization, landscape ecology, operations research, forest policy, physiology, recreation, social sciences, soils & hydrology, and wildlife management.
Forest Science is published bimonthly in February, April, June, August, October, and December.
2015 Impact Factor: 1.702
Ranking: 16 of 66 in forestry
Also published by SAF:
Journal of Forestry
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