Co-evolution of Institutions and Strategies: Finnish Pulp and Paper Industry 1918-1995

Abstract

In this paper, we focus on the co&evolution between an institutional form and company&level strategies over an extended period of time. We analyze the content and evolution of the institutional environment surrounding Finnish paper and pulp firms between 1918—1995. Our study includes two elements. First, we identify the de facto institutional structures affecting corporate strategies by parcelling the institutional environment to a set of informal and formal rules. Second, we examine the consequences of the shared institutional environment vis&]&vis competitive actions undertaken by the firms. Moreover, we scrutinize the durability of the institutional form by measuring the level of adaptability of the competitive actions. Our results suggest that firms participating in the building and maintenance of the institutional form start and enhance an institutional process of change in correlation with the level of their own internationalization. Keywords: institutional theory, co&evolution, historical analysis, strategy, paper and pulp industry