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The role of management control has not received sufficient attention in the literature on value creation so far. Therefore, this paper aims to investigate the role of control in value creation in industrial networks. More specifically, the aim is to examine the management and control of interfaces between key resources within and between firms, in the networks surrounding firms, when they attempt to create value. All the firms that take part in a value-creation process have both formal and informal control systems: these firms have budgets, specific routines, reward systems, and sanctioned “ways to behave.” The paper relates the Industrial Marketing and Purchasing (IMP) group's research on interaction, relationships, and networks with control literature, and presents a framework for controlling resource interfaces in a network setting. Two in-depth cases illustrate the role of control in value creation. The first case covers the development of a low-weight newspaper grade that Holmen and its paper mill Hallsta initiated. The second case examines the attempt to develop and commercialize a new, energy efficient pulping technology.

The study aims to evaluate the informational value to investors of the Toxics Release Inventory (TRI) as an external outcome measure of corporate environmental performance. Emphasis is placed on the market response differences between three highly polluting industries.

The study uses pooled cross‐sectional, time‐series data and an event study methodology to examine the effects of TRI emissions on abnormal market returns.

There is empirical evidence that market reactions to TRI emissions information vary by industry. Investors reward decreases in emissions in the electric utility industry, but do not penalize increases. In the chemical industry, increases in emissions are penalized, but decreases are not rewarded. Models do not capture any reaction to emissions changes in the pulp and paper industry. These results may be explained by the significant difference between industries in the US percentage of total firm sales.

This research analyzes only data from US firms in three industries and evaluates a single measure of environmental performance, TRI. The value of TRI information is measured for one stakeholder group. Future research should attempt to address these limitations.

The results suggest that research on the effects of environmental performance on market‐based measures should estimate models by industry, whenever possible. From a public policy perspective, the results suggest that regulators may want to consider alternative methods of reducing chemical emissions beyond TRI disclosure in the chemicals and pulp and paper industries.

The study distinguishes between the value of TRI as a “message service” and the content of the “message”. TRI may provide information of value to investors, but performance changes may not be sufficient to merit a price response. The study also specifically addresses industry differences and clearly shows how average coefficients can be misleading relating to this one environmental performance indicator. The use of pooled industry coefficients may lead to inefficient resource allocation decisions within industries and ineffective policies at the regulatory level.

The pulp and paper industry has been the focus of government policies ever since independence. This is the only industry where government plays a multi-dimensional role – not only as the regulator but also as the supplier of raw material and as the buyer. Despite the government's omnipotent role, there is evidence that industry is not very competitive, as it has very high energy and water intensity and poor productivity. A potent factor identified in the literature for the underperformance of the industry or for that matter any economy is the kind of technology used by the firms in the sector. This paper aims to look into the role of government policy in affecting the growth of the industry and what role embodied technology has played in influencing the efficiency of firms in Indian pulp and paper industry.

For the first question, the study uses 66 years of production data of the industry from 1951 to 2016 and tests for the structural break. For the second question, the study uses cross-section plant-level data for the year 2011-2012 of 160 paper manufacturing units to first estimate the stochastic production frontier (stochastic frontier analysis [SFA]) and then uses the output of SFA to find an association between embodied technology gap (TG) and technical efficiency. A methodological problem in earlier literature is the use of the productivity gap as a proxy for embodied TG. The present study uses technical parameters of papermaking – machine deckle and operating speed – to construct an index of TG.

The results show a structural break in the production trend occurring in 1999 with the delicensing in July 1997 as the possible cause. The SFA results show that the average technical inefficiency (TE) of the firms in the sector is 74 per cent with half of the firms having TE higher than 76 per cent. The study, however, does not find any impact of embodied TG on technical efficiency; rather it is the age, size, ownership and location that have an impact on it.

This is an original research, as the author has not come across any study in Indian context or elsewhere using technical parameters to construct TG variable.

A control chart is a widely used Six Sigma DMAIC process measure and control phase tool. The purpose of this paper is to contribute to the body of knowledge on applying statistical process control (SPC) methods in a pulp mill production organization and the special issues that need to be considered in this context.

The method for obtaining the results was action research, where the researcher actively participated in implementing changes in organization. Procedures to detect and further handle the deviations in a pulp mill organization were created and implemented. A cause and effect diagram used in finding causes and storing the accumulated knowledge was modified to make it applicable to this environment.

Factors for successful SPC implementation were found to be in line with earlier findings in other industries. SPC can act as a means of organizational learning in the pulp and paper industry. Specific problems in the pulp and paper industry concerning the use of SPC were the autocorrelation of data, excessive measurement variation, and limited process knowledge. The effectiveness of SPC in a pulp mill was shown both in the decreasing amount of deviations and in the positive opinions of the employees.

Findings are generated from a single case, so general applicability is limited.

This case study can be used as a benchmark by other practitioners in the industry.

This article provides new knowledge in the context of implementing SPC in a pulp and paper manufacturing organization.

In this chapter, we explore the impact of socioemotional and financial wealth on the resource management of family firms. We use MoDo, a Swedish pulp and paper firm, covering three generations of owner-managers from 1873 to 1991, to grasp the shifting emphases on socioemotional and financial wealth in the management of the company. Identifying four strategic issues of decisive importance for the development of MoDo, we analyze the organizational values that guided the management of these issues. We propose that financial and socioemotional wealth stand for two different rationalities that infuse organizational values. The MoDo case illustrates how these rationalities go hand in hand for extended periods of time, safeguarding both financial success and socioemotional endowments. However, in a situation where the rationalities are no longer in line with the development of the industry context, the conflict arising between the two rationalities may have fatal consequences for the firm in question.

Empirical evidence from the past decade confirms that multinationals increasingly see the environment as a strategic issue, whether in terms of limiting damage to the bottom line from adverse publicity, or actually gaining in the marketplace by pioneering more environmentally conscious solutions. During the same period, NGOs have become a visible part of the political process, in influencing the environmental strategies of multinationals through direct action, as well as by forming broader coalitions aimed at influencing the agenda at multilateral institutions such as the WTO and the OECD regarding environmental concerns and the behavior of multinationals. This chapter explores the importance of different environmental drivers on the behavior of firms in the pulp and paper industry, with particular focus on the role of Greenpeace in changing industry practices. We discuss the extent to which the paper industry might be a special case in this respect, and conclude by assessing the implications for public policy.

The purpose of this paper is to shed light on the boundary choices of firms operating in the pulp and paper industry.

Explorative interviews were conducted with senior managers of pulp and paper companies, and comparative data on other industries were collected. The theoretical approach was based on extended transaction‐cost economics (TCE).

The results demonstrate that when company decision makers consider the governance choice for different activities, i.e. make or buy, the determinants implied in traditional TCE are not the only relevant factors. Transaction or management benefits are also important, and managers also take into account the long‐term effects of boundary choices. The determinants of governance choices depend on the nature and strategic importance of the activity in question: when it is a question of outsourcing marginal activities, for example, management costs and dynamic transaction benefits seem to be of most significance. On the other hand, transaction costs and dynamic management benefits have a major role in the definition of boundary choices related to core activities.

This research paper is explorative. Further quantitative research would enhance the generalizability of the findings.

This paper demonstrates that the factors managers implicitly take into account when considering firm boundaries could be explicitly assessed through the application of extended transaction‐cost logic. This would help to make the decision making more structured and would highlight the relevant factors affecting these boundaries.

Traditional transaction‐cost theory has been criticised for neglecting value‐creation issues that may also be essential in terms of explaining the firm's boundary choices. This study brings not only transaction costs but also the benefits and dynamic aspects of these choices under scrutiny.

The purpose of this paper is to examine the content and determinants of voluntary corporate social responsibility (CSR) disclosures within chief executive officer (CEO) letters and social media tools.

Published CEO letters and the presence of global pulp and paper manufacturing companies in the social media in 2012 are analysed in this study using content analysis. Furthermore, multiple regression analysis is used to investigate the impact played by headquarter location, firm size and lagged profitability as a measure of slack resources on the quality of CSR disclosure.

Company size and slack resources were found to increase the quality of traditional sustainability communication, whereas company size was the only significant factor explaining communication quality in social media usage. Environmental issues were the most common disclosure topic, accompanied by community issues. A curvilinear association was interestingly found between slack resources and communication quality.

The sample frame was selected from the 100 largest pulp and paper companies globally, and for better generalization, future research should aim at also analyzing data from small and medium enterprises and from other industries.

Findings of the paper are useful for firm self-evaluation and benchmarking of disclosure activities by other businesses across the pulp and paper industry.

Slack company resources improve communication quality and the effective utilization of multiple channels.

This paper incorporates the framework of the new ISO 26000 standard in CSR implementation and illustrates the growing importance of social media in communicating CSR.

The purpose of this paper is to investigate optimal strategic decision alternatives for Finnish pulp production companies in response to rising export tariffs on Russian roundwood. Traditionally, increasing the domestic or Russian supply to pulp mills satisfied their wood requirements. However, once this conventional strategy could no longer be implemented (in 2008), the wood requirements were met by adjusting pulp production (reducing) and wood procurement (increasing domestic procurement).

As the primary research data for the study, the procurement situation in 2005 was used to describe the conventional business strategy for purchasers of Russian or domestic roundwood. Possible business strategies were then simulated for changing pulp production by Stora Enso, with the goal of adjusting roundwood requirements, to develop a globally‐optimal strategy to solve the procurement problem.

After removing production by the northernmost Finnish pulp mill, the authors could not find a globally optimal solution for the wood‐procurement problem. It was found that Russia's tax policy (high export tariffs on roundwood) will have large implications for Finnish wood procurement (i.e. the use of domestic wood vs imported Russian roundwood), and can dramatically change the basis, type, and location of pulp mills. The reduction or total elimination of imported Russian roundwood caused severe supply shortages and reduced pulp production.

Based on the results of analysis, the authors recommend adjustment methods to assist strategic wood‐procurement decisions, given the need to adapt wood‐procurement logistics to an unpredictable and complicated pulp production environment that requires continual optimization of the wood flow.

This chapter analyses conditions under which residents of a small Russian town accept the concepts “pollution” and “ecological risk.” The town in question is Sokol in the Vologda oblast of the Russian Federation, where there are two pulp and paper mills and other forest industries. Sokol is a typical small town with a population of about 40,000. The pulp and paper mills are locally run. The issues surrounding Sokol's pulp and paper mills generally present a typical Russian picture (Kuliasova & Kuliasov, 2002a, 2002b) with one major exception. Industrialization in Sokol goes back more than a century and thus reflects the broader history of the 20th century.