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The Role of Forest Resources in the Performance of Community Forest Enterprise in Mexico: Analytical Framework from Competitive Strategy

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Type: Journal Article
Author: Maldonaldo, Regino J.; Carpenter, Christopher
Journal: International Journal of Sciences
Volume: 4
Page(s): 14-24
Date: 2015
URI: https://hdl.handle.net/10535/9812
Sector: Forestry
Theory
Region: Central America & Caribbean
Subject(s): common pool resources
economics
Abstract: "The objective was to make an analytical framework to support the strategy and performance of the community forest enterprise. To do this, we used theoretical analysis of the contributions of the main theories of the firm. The new institutional economics the role of institutions in common were analyzed. The institutions of governance and property rights of the communities determine the organizational structure and incentives. The possibilities of exchange of production and efficiency of community forest enterprise. The enterprise aligns multiple objectives in the governance of the commons, and the strategy. Community forest enterprise´s strategy is based on the use and control of forest resources and engages simultaneously in vertical integration in so far as they mature management skills and production in general. The analysis of the literature suggests that the performance of the community forest enterprise is positive because they are not only profitable domestic market, but also contribute to poverty reduction and environmental protection. However, it has implications as pressure on forest resources, over-regulation of natural resources; individuals do not achieve the social optimum, and therefore high-risk domestic market and loss of competitiveness internationally."

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