Entrepreneurial orientation in the forestry industry: a population ecology perspective

Abstract

Purpose

This study primarily seeks to focus on how entrepreneurial orientation (EO) may have influenced the evolution of SMEs in a constrained environment, namely the forestry industry. It also aims to find out how EO still acts on strategic intentions, management behaviour of the business leader and the SME's performance.

Design/methodology/approach

The approach takes the form of an empirical study based on a sample of 717 forestry SME owner‐managers, with cluster analysis of the data, taking a population ecology perspective.

Findings

The study reveals the existence of two types of forestry SMEs. The first, which could be referred to as an entrepreneurially‐oriented enterprise, generates a large portion of its revenues from out‐of‐forest activities. The second type is a small‐business‐oriented enterprise. In the context of the forestry sector, many opportunities to start a business were created following the decision of large corporations to subcontract their wood supply. The study shows how entrepreneurial orientation may influence the SMEs population distribution within different categories.

Research limitations/implications

Forestry SMEs should no longer be considered as mere subcontractors on the payroll of large firms, as the presence of genuine forestry entrepreneurs has been confirmed. These exhibit a strong entrepreneurial orientation and overcome the scarcity of opportunities in the industrial sector to sustain their growth willingness. With a shortage of entrepreneurs expected in the coming years, these “true” entrepreneurs may be called on to perform a more important role within the forest value chain.

Practical implications

Even when environment is not munificent, entrepreneurially‐oriented businesses find strategies to pursue growth opportunities. In the forest sector, diversification within the sector by offering turnkey projects to large contractors seems to be the first step to fuel further diversification outside the forest. A transition towards increasing the scope of forestry businesses as well as supporting diversification could be important avenues to pursue.

Originality/value

This may be the first time that empirical investigation of the entrepreneurial orientation has been done in a constrained environment and from a population ecology perspective. The study confirms the role of this concept in the development of entrepreneurship.

Citation

St‐Jean, E., LeBel, L. and Audet, J. (2010), "Entrepreneurial orientation in the forestry industry: a population ecology perspective", Journal of Small Business and Enterprise Development, Vol. 17 No. 2, pp. 204-217. https://doi.org/10.1108/14626001011041210