Sustainability Transition and Perceived Competitiveness of Forest-Sector SMEs in Lithuania: Interactions Between Regulation, Sustainable Product Development and Human Resources

Small and medium-sized enterprises (SMEs) in the forest sector face increasing sustainability requirements, regulatory changes and technological development. These changes create new opportunities but also increase operating costs, uncertainty and the need for new competences. This study aims to assess the importance of regulation and sustainability requirements, sustainable product development and human resources for the competitiveness of forest-sector SMEs in Lithuania, and to examine the relationships between these factors. The analysis was based on an online survey of 40 experts representing 40 Lithuanian forest-sector enterprises. The questionnaire included 106 statements covering strengths, weaknesses, opportunities and threats (SWOT), assessed using a five-point Likert scale. The data were analysed using descriptive statistics, the Friedman test, Bonferroni-adjusted pairwise comparisons and exploratory regression analysis. The results showed that regulation and sustainability requirements were perceived as both opportunities and constraints. Increased operating costs were the highest-rated regulatory weakness (mean = 4.48), while improved consumer reputation was the highest-rated regulatory strength (mean = 4.30). Technological progress was identified as an important opportunity for sustainable product development. Access to European Union and national funding programmes was the highest-rated perceived driver of competitiveness, while regulatory and policy constraints were the highest-rated barrier. Regression analysis revealed positive associations between perceived weaknesses and opportunities, suggesting that experts who recognised greater internal limitations also tended to identify external opportunities. These relationships should not, however, be interpreted as causal effects. Overall, the findings indicate that regulatory conditions, access to finance, technological development and human resources are closely related dimensions of the sustainability transition. Their interaction may influence how forest-sector SMEs adapt to changing requirements and strengthen their long-term competitiveness. The findings reflect the situation of forest-sector SMEs in Lithuania, based on expert assessments, and provide insights into the factors shaping their competitiveness during the sustainability transition.