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

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.