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Characterization of forestry contractors' business models and profitability in Northern Sweden

Kronholm, Thomas and Larsson, Ida and Erlandsson, Emanuel (2021). Characterization of forestry contractors' business models and profitability in Northern Sweden. Scandinavian Journal of Forest Research. 36 , 491-501
[Research article]

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Abstract

Forestry contractors have doubled their share of work in Swedish forests since the 1990s and have thus become important actors in the industry's supply chain. Yet, their profitability has often been low. It is essential for a firm's success to have a well-functioning business model. Therefore, the aim of this study was to characterize business models currently used by forestry contractors and identify differences in the contractors' financial performance in relation to a chosen business model. A survey was sent to all limited liability companies in northern Sweden that were registered to carry out logging or silviculture. One hundred and ninety-eight contractors responded, and their financial performance was analysed based on information in financial statements. The study highlights that there are clear differences both within and between contractor categories in relation to several business model components, as well as their financial performance. Logging contractors had the lowest profitability, measured as return on assets, and also a lower solidity and liquidity compared to silvicultural and mixed service contractors. The largest logging contractors tended to have a better and more stable profitability than small ones, although the differences were small and varied between years. However, a negative trend in profitability was identified for all contractor groups.

Authors/Creators:Kronholm, Thomas and Larsson, Ida and Erlandsson, Emanuel
Title:Characterization of forestry contractors' business models and profitability in Northern Sweden
Series Name/Journal:Scandinavian Journal of Forest Research
Year of publishing :2021
Volume:36
Page range:491-501
Number of Pages:11
Publisher:TAYLOR AND FRANCIS AS
ISSN:0282-7581
Language:English
Publication Type:Research article
Article category:Scientific peer reviewed
Version:Published version
Copyright:Creative Commons: Attribution-Noncommercial-No Derivative Works 4.0
Full Text Status:Public
Subjects:(A) Swedish standard research categories 2011 > 4 Agricultural Sciences > 401 Agricultural, Forestry and Fisheries > Forest Science
Keywords:Business model canvas, logging, silviculture, entrepreneur
URN:NBN:urn:nbn:se:slu:epsilon-p-113576
Permanent URL:
http://urn.kb.se/resolve?urn=urn:nbn:se:slu:epsilon-p-113576
Additional ID:
Type of IDID
DOI10.1080/02827581.2021.1973087
Web of Science (WoS)000692599500001
ID Code:25866
Faculty:S - Faculty of Forest Sciences
Department:(S) > Department of Forest Biomaterials and Technology
(S) > Dept. of Forest Resource Management
(NL, NJ) > Dept. of Forest Resource Management
Deposited By: SLUpub Connector
Deposited On:18 Oct 2021 14:21
Metadata Last Modified:18 Oct 2021 14:31

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