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Capabilities in Motion: New Organizational Forms and the Reshaping of the Hollywood Movie Industry

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  • Joseph Lampel
  • Jamal Shamsie
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    Abstract

    This paper looks at the evolution of capabilities in the Hollywood movie industry in the aftermath of the transition from a studio era dominated by integrated hierarchies to a post-studio era dominated by flexible hub organizations supplied by networks of resource providers. Adopting a dynamic capabilities perspective we argue that two industry capabilities - mobilizing and transforming capabilities - play a crucial role in assembling and transforming resource bundles into feature films. We further argue that the transition to new organizational forms shifts the co-evolutionary process, with practices and routines that make up mobilizing capabilities changing faster and becoming more important to box office success than practices and routines that make up transforming capabilities. We test our hypotheses using a sample of 400 films split between the studio and post-studio eras. The results support our hypotheses, pointing to the influence of centralized control versus dispersed access to resources. The strategy of integrated hierarchical organizations depends on ownership of resources that reduces incentives to develop mobilizing capabilities, and increases incentives to develop transforming capabilities. The advent of new organizational forms, by contrast, increases returns to new practices and routines that mobilize resources at the expense of returns on exploring practices and routines that make up transforming capabilities. Copyright 2003 Blackwell Publishing Ltd..

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Management Studies.

    Volume (Year): 40 (2003)
    Issue (Month): 8 (December)
    Pages: 2189-2210

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    Handle: RePEc:bla:jomstd:v:40:y:2003:i:8:p:2189-2210

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    Cited by:
    1. Brinja Meiseberg & Thomas Ehrmann, 2013. "Diversity in teams and the success of cultural products," Journal of Cultural Economics, Springer, Springer, vol. 37(1), pages 61-86, February.
    2. Mark Lorenzen & Lars Frederiksen, 2005. "On the Economics of Innovation Projects Product Experimentation in the Music Industry," DRUID Working Papers 05-23, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    3. Allègre Hadida, 2010. "Commercial success and artistic recognition of motion picture projects," Journal of Cultural Economics, Springer, Springer, vol. 34(1), pages 45-80, February.
    4. Richard Arend, 2013. "Ethics-focused dynamic capabilities: a small business perspective," Small Business Economics, Springer, Springer, vol. 41(1), pages 1-24, June.
    5. Alfonso Gambardella & Marco Giarratana, 2004. "Chandlerian Firms vs. Entrepreneurship," LEM Papers Series 2004/12, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    6. Simon Deakin & Ana Lourenço & Stephen Pratten, 2009. "No "third way" for economic organization: Networks and quasi-markets in broadcasting," Industrial and Corporate Change, Oxford University Press, vol. 18(1), pages 51-75, February.
    7. Lars Frederiksen & Silvia Rita Sedita, 2005. "Embodied Knowledge Transfer Comparing inter-firm labor mobility in the music industry and manufacturing industries," DRUID Working Papers 05-14, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    8. Richard Arend, 2014. "Entrepreneurship and dynamic capabilities: how firm age and size affect the ‘capability enhancement–SME performance’ relationship," Small Business Economics, Springer, Springer, vol. 42(1), pages 33-57, January.
    9. Azadegan, Arash & Wagner, Stephan M., 2011. "Industrial upgrading, exploitative innovations and explorative innovations," International Journal of Production Economics, Elsevier, Elsevier, vol. 130(1), pages 54-65, March.
    10. Heugens, P.P.M.A.R. & Zyglidopoulos, S.C., 2007. "Unfit to Learn? How Long View Organizations Adapt to Environmental Jolts," ERIM Report Series Research in Management, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasm ERS-2007-014-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.

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