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Innovation research in the wood products industry has historically focused on factors that the firm can influence or control (i.e. climate for innovation, organizational culture, job satisfaction, etc.) (Hovgaard and Hansen, 2004), as opposed to factors external to the firm that it may not be able to directly influence or control (political, economical, social, technological, or ecological) (Andrews, 1999). The purpose of this paper is to understand how the external factors of the firm impact innovation in the wood products industry, specifically, the hardwood decorative veneer producing firms. This paper uses Schumpeter's five-factor model of innovation to investigate strategies hardwood veneer firms use to innovate.
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