Organizational restructuring in British Columbia's forest industries 1980–2010: The survival of a dinosaur

During the Fordist boom decades from the 1940 to the 1970s British Columbia's forest industries were dominated by large, vertically and horizontally integrated companies and the mass production of standardized, low-value commodities. The severe recession of the 1980s threatened this domination. The resource endowment was in decline, conflicts over forest values became widespread and booming and busting became routine. Corporate restructuring in BC's forest industry, led by Canfor, BC's only major forest corporation to survive from Fordist days, has survived by a strategy of cost minimization, mass production, M&A and geographical expansion, rather than pursue more innovative strategies. This paper explains this choice. Conceptually, the analysis draws upon evolutionary theories of the firm in relation to resource industries. Empirically, a case study of Canfor's restructuring is outlined. The paper argues that Canfor's highly conservative ‘back to the future’ strategies are consistent with theoretical explanations of vertically integrated firms, and have been reinforced by the emergence of a volatile, uncertain and conflicted forest economy in BC.

► The restructuring of BC's forest industry is triggered by both economic and institutional changes.
► Most large forest corporations have remained integrated producers of low-cost commodities.
► Canfor survived by a strategy of cost minimization, mass production, M&A and geographical expansion.