Title: Game global in the pulp and paper industry: technological investment strategies and value creation

Authors: Hanna Kuittinen, Kalevi Kylaheiko, Jaana Sandstrom, Satu Patari

Addresses: School of Business, Lappeenranta University of Technology, P.O. Box 20, FI-53851 Lappeenranta, Finland. ' School of Business, Lappeenranta University of Technology, P.O. Box 20, FI-53851 Lappeenranta, Finland. ' School of Business, Lappeenranta University of Technology, P.O. Box 20, FI-53851 Lappeenranta, Finland. ' School of Business, Lappeenranta University of Technology, P.O. Box 20, FI-53851 Lappeenranta, Finland

Abstract: The global players in the pulp and paper industry are facing a challenging situation since many structural parameters are changing rapidly. This paper analyses a method of coping with this new situation. First, the paper demonstrates how the industry dynamics of the pulp and paper industry has changed during 1996-2005, measured by value creation/destruction and the efficiency of using capital. Second, this phenomenon will be analysed empirically by focusing on the firms| current capability to create new value for past investments. The results demonstrate that different investment strategies have different effects on profitability and the ability to create value.

Keywords: industry dynamics; investment strategy; profitability; pulp and paper industry; value creation; technological investment; technology intelligence.

DOI: 10.1504/IJTIP.2010.035154

International Journal of Technology Intelligence and Planning, 2010 Vol.6 No.2, pp.151 - 163

Published online: 09 Sep 2010 *

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