Transformative firm-level agency: A case study of small and medium-sized enterprises (SMEs) in the Swiss wood-processing industry

This paper investigates different enterprise types as potential agents of transformative change in the wood-processing industry. To do so, it combines the concept of transformative enterprise with recent accounts of agency in evolutionary economic geography. We examine small and medium-sized enterprises (SMEs) in the wood-processing industry because by using a renewable resource that stores CO 2 and has the potential to replace polluting materials, they could become frontrunners in sustainability transformations through a wood-based bioeconomy. Empirically, we draw on a qualitative case study with 24 wood-processing SMEs in the Canton of Bern, Switzerland. Based on the concept of transformative enterprise, we identify five enterprise types: silent ecologists, social pioneers, visionary nonconformists, ambitious entrepreneurs, and pragmatist traditionalists. The first four types show many characteristics indicating transformative firm-level agency while only the ambitious entrepreneurs seem capable of inducing changes at the system-level. This is due to several limits of change agency, which we also illuminate. Overall, our study sheds light on the heterogeneity of firms as change agents in the context of sustainability transformation. • We examine if and how SMEs are change agents in sustainability transformation. • We identify five actor types in SMEs. • Regarding sustainability transformation, these SMEs have restricted change agency. • However, four SME types have the potential to become transformative. • This research complements agency perspectives with a focus on SMEs.