Innovation in Timber Processing—A Case Study on Low-Grade Resource Utilisation for High-Grade Timber Products

Abstract

Native forest timber supplies are declining, and industry needs to do more with less to meet growing demand for wood products. An Australian-based, vertically integrated timber manufacturing business is commissioning a spindleless lathe to produce engineered wood products from small logs. The literature on innovation in timber manufacturing was found to generally focus on technical innovation, with relatively little use of market-oriented concepts and theory. This was particularly true in the Australian context. Using a market-oriented case study approach, this research assessed innovation in the business. It aimed to inform industry-wide innovation approaches to meet market demand in the face of timber supply challenges. Interviews were conducted with key personnel at the firm. Data and outputs were produced to facilitate comparison to existing research and conceptual frameworks. The business was found to empower key staff and willingly access knowledge, information and data from outside its corporate domain. It was also found to prioritise corporate goals outside of traditional goals of profit and competitive advantage. This was shown to increase willingness to try new things at the mill and increase the chances that new approaches would succeed. Thinking outside of the corporate domain was shown to allow access to resources that the firm could not otherwise count on. It is recommended that wood processing businesses seek to emulate this element of the case study, and that academia and the broader sector examine further the potential benefits of using enterprise and market-oriented lenses to better utilise available resources and maintain progress towards corporate goals.