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BUILDING RESILIENT ORGANIZATIONS AND INNOVATION NETWORKS IN
WOOD CONSTRUCTION INDUSTRY
Melina M. MAUNULA
Lappeenranta University of Technology (LUT),
School of Business and Management, Kouvola, Finland.
Abstract
This paper discusses how the implementation of open innovation practices and mindset can benefit companies
faced with large systemic change like bioeconomy transition. The research is based on a regional case study on
wood construction industry in South-East Finland.
Bioeconomies emerge through interlinked business and creation of innovation networks that are based on the
use of renewable raw materials. Wood construction industry, and other industries that are already using
renewable raw materials, are not threatened by the ongoing transformation. However, to benefit fully from
the bioeconomy transition, companies are compelled to create new networks in order to facilitate innovation,
commercialization and market growth. The adoption of innovations is often dependent on other organizations,
as supporting products and services are needed. Previous research shows that open innovation is increasingly
adopted in SMEs as well as in big companies, and it can increase the resilience and innovation capability of
organizations. The paper concludes that a paradigm shift towards open innovation is needed in companies
willing to benefit from the ongoing bioeconomy transition. Open innovation attitudes also support the
creation of new wood construction innovation networks, which is found essential in terms of the industry
benefiting from the emergence of a regional bioeconomy in South-East Finland.
Keywords: open innovation, innovation network, wood construction industry, bioeconomy transition, South-
East Finland.
Introduction
The bioeconomy transition benefits industries using renewable raw materials like wood.
However, systemic change requires emergence of new innovation ecosystems, as well as
implementation of new approaches and practices in individual organizations. In this article
we examine a regional case in South-East Finland to investigate how wood construction
industry companies can benefit from the ongoing bioeconomy transition in the region. The
open innovation paradigm provides an outlook on the innovation management and
networking that are required.
Even though the creation of new co-operation has been recognized to be critical in
facilitating the bioeconomy transition (Luoma et al., 2011), most research efforts are
currently directed towards making technological or legislative advances. However, the
abilities to network and benefit from innovation networks are extremely important from the
perspective of companies. It is important to look at the situation especially from the point of
view of small and medium sized enterprises (SMEs), as they form the majority of the
innovation network in the emerging bioeconomy. Due to the industry structure, the
features of SMEs are stressed also in connection to the open innovation theory.
Research Question: How can wood construction industry companies benefit from open
innovation in the ongoing transition to bioeconomy?
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