IDEAS home Printed from https://ideas.repec.org/a/kap/jculte/v36y2012i3p227-248.html
   My bibliography  Save this article

The effects of having more than one good reputation on distributor investments in the film industry

Author

Listed:
  • Joris Ebbers
  • Nachoem Wijnberg

Abstract

Reputations of organizations and its individual members are valuable resources that help new organizations to get access to investment capital. Reputations, however, can have different dimensions. In this paper, we argue that an individual’s reputation along a particular dimension will have a positive effect on the behavior of investors when it is role congruent. In addition, we argue that also scoring favorably on the role-incongruent dimension at the same time—or, in other words, engaging in reputational category spanning—will weaken the positive effect of the role-congruent reputation. Our empirical setting is the film industry where we study the effect of the two main dimensions of reputation in cultural industries, artistic and commercial, of both directors and producers on the size of the investment by distributors. In this study, artistic reputation is based on professional critics’ reviews and commercial reputation on box office performance of the films in which individuals were involved in the past. We find that the commercial reputation of a film producer based on past box office performance has a positive effect on the size of the investment by film distributors. In addition, we find that directors who at the same time combine both a favorable commercial as well as an artistic reputation actually receive a lower investment from film distributors. Copyright The Author(s) 2012

Suggested Citation

  • Joris Ebbers & Nachoem Wijnberg, 2012. "The effects of having more than one good reputation on distributor investments in the film industry," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 36(3), pages 227-248, August.
    • Handle: RePEc:kap:jculte:v:36:y:2012:i:3:p:227-248
    DOI: 10.1007/s10824-012-9160-z
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10824-012-9160-z
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10824-012-9160-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lowell W. Busenitz & James O. Fiet & Douglas D. Moesel, 2005. "Signaling in Venture Capitalist—New Venture Team Funding Decisions: Does it Indicate Long–Term Venture Outcomes?," Entrepreneurship Theory and Practice, , vol. 29(1), pages 1-12, January.
    2. Christine M. Beckman & M. Diane Burton, 2008. "Founding the Future: Path Dependence in the Evolution of Top Management Teams from Founding to IPO," Organization Science, INFORMS, vol. 19(1), pages 3-24, February.
    3. Westhead, Paul & Wright, Mike, 1998. "Novice, portfolio, and serial founders: are they different?," Journal of Business Venturing, Elsevier, vol. 13(3), pages 173-204, May.
    4. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    5. Hayagreeva Rao, 1994. "The Social Construction of Reputation: Certification Contests, Legitimation, and the Survival of Organizations in the American Automobile Industry: 1895–1912," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 29-44, December.
    6. Milgrom, Paul & Roberts, John, 1986. "Price and Advertising Signals of Product Quality," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 796-821, August.
    7. Eileen Fischer & Rebecca Reuber, 2007. "The Good, the Bad, and the Unfamiliar: The Challenges of Reputation Formation Facing New Firms," Entrepreneurship Theory and Practice, , vol. 31(1), pages 53-75, January.
    8. Yuval Deutsch & Thomas W. Ross, 2003. "You are Known by the Directors You Keep: Reputable Directors as a Signaling Mechanism for Young Firms," Management Science, INFORMS, vol. 49(8), pages 1003-1017, August.
    9. Ferriani, Simone & Cattani, Gino & Baden-Fuller, Charles, 2009. "The relational antecedents of project-entrepreneurship: Network centrality, team composition and project performance," Research Policy, Elsevier, vol. 38(10), pages 1545-1558, December.
    10. Morris Holbrook & Michela Addis, 2008. "Art versus commerce in the movie industry: a Two-Path Model of Motion-Picture Success," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 32(2), pages 87-107, June.
    11. De Vany, Arthur & Walls, W David, 1996. "Bose-Einstein Dynamics and Adaptive Contracting in the Motion Picture Industry," Economic Journal, Royal Economic Society, vol. 106(439), pages 1493-1514, November.
    12. Monica C. Higgins & Ranjay Gulati, 2003. "Getting Off to a Good Start: The Effects of Upper Echelon Affiliations on Underwriter Prestige," Organization Science, INFORMS, vol. 14(3), pages 244-263, June.
    13. Rodolphe Durand & Hayagreeva Rao & Philippe Monin, 2007. "Code and conduct in French cuisine: Impact of code changes on external evaluations," Post-Print hal-00459450, HAL.
    14. Hsu, David H., 2007. "Experienced entrepreneurial founders, organizational capital, and venture capital funding," Research Policy, Elsevier, vol. 36(5), pages 722-741, June.
    15. Glenn B. Voss & Daniel M. Cable & Zannie Giraud Voss, 2000. "Linking Organizational Values to Relationships with External Constituents: A Study of Nonprofit Professional Theatres," Organization Science, INFORMS, vol. 11(3), pages 330-347, June.
    16. Gerda Gemser & Martine Oostrum & Mark Leenders, 2007. "The impact of film reviews on the box office performance of art house versus mainstream motion pictures," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 31(1), pages 43-63, March.
    17. Beckman, Christine M. & Burton, M. Diane & O'Reilly, Charles, 2007. "Early teams: The impact of team demography on VC financing and going public," Journal of Business Venturing, Elsevier, vol. 22(2), pages 147-173, March.
    18. Jehoshua Eliashberg & Sam K. Hui & Z. John Zhang, 2007. "From Story Line to Box Office: A New Approach for Green-Lighting Movie Scripts," Management Science, INFORMS, vol. 53(6), pages 881-893, June.
    19. Carl Shapiro, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(4), pages 659-679.
    20. Arthur De Vany & W. Walls, 1999. "Uncertainty in the Movie Industry: Does Star Power Reduce the Terror of the Box Office?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 23(4), pages 285-318, November.
    21. Ezra W. Zuckerman & Tai-Young Kim, 2003. "The critical trade-off: identity assignment and box-office success in the feature film industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(1), pages 27-67, February.
    22. Scott Shane & Daniel Cable, 2002. "Network Ties, Reputation, and the Financing of New Ventures," Management Science, INFORMS, vol. 48(3), pages 364-381, March.
    23. Allègre Hadida, 2010. "Commercial success and artistic recognition of motion picture projects," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 34(1), pages 45-80, February.
    24. Zuckerman, Ezra W. & Kim, Tai-Young & Ukanwa, Kalinda & James, von Rittmann, 2003. "Robust Identities or Non-Entities? Typecasting in the Feature Film Labor Market," Working papers 4291-02, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    25. Rodolphe Durand & Hayagreeva Rao & Philippe Monin, 2007. "Code and conduct in French cuisine: Impact of code changes on external evaluations," Strategic Management Journal, Wiley Blackwell, vol. 28(5), pages 455-472, May.
    26. Greta Hsu & Michael T. Hannan, 2005. "Identities, Genres, and Organizational Forms," Organization Science, INFORMS, vol. 16(5), pages 474-490, October.
    27. Giuseppe Delmestri & Fabrizio Montanari & Alessandro Usai, 2005. "Reputation and Strength of Ties in Predicting Commercial Success and Artistic Merit of Independents in the Italian Feature Film Industry," Journal of Management Studies, Wiley Blackwell, vol. 42(5), pages 975-1002, July.
    28. Storper, Michael, 1989. "The Transition to Flexible Specialisation in the U.S. Film Industry: External Economies, the Division of Labour, and the Crossing of Industrial Divides," Cambridge Journal of Economics, Oxford University Press, vol. 13(2), pages 273-305, June.
    29. Boyd D. Cohen & Thomas J. Dean, 2005. "Information asymmetry and investor valuation of IPOs: top management team legitimacy as a capital market signal," Strategic Management Journal, Wiley Blackwell, vol. 26(7), pages 683-690, July.
    30. Mary Ann Glynn & Michael Lounsbury, 2005. "From the Critics’ Corner: Logic Blending, Discursive Change and Authenticity in a Cultural Production System," Journal of Management Studies, Wiley Blackwell, vol. 42(5), pages 1031-1055, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. G. Meloni & D. Paolini & M. Pulina, 2015. "The Great Beauty: Public Subsidies in the Italian Movie Industry," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 1(3), pages 445-455, November.
    2. Durand, Rodolphe & Hadida, Allègre L., 2016. "Logic combination and performance across occupational communities: The case of French film directors," Journal of Business Research, Elsevier, vol. 69(7), pages 2371-2379.
    3. Jordi McKenzie, 2023. "The economics of movies (revisited): A survey of recent literature," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 480-525, April.
    4. Laura Dupin & Tao Wang & Filippo Carlo Wezel, 2022. "Designing and Aligning Interprofessional Relations," Post-Print hal-04325762, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ebbers, Joris J. & Wijnberg, Nachoem M., 2012. "Nascent ventures competing for start-up capital: Matching reputations and investors," Journal of Business Venturing, Elsevier, vol. 27(3), pages 372-384.
    2. Tang, Yi & Wezel, Filippo Carlo, 2015. "Up to standard?," Journal of Business Venturing, Elsevier, vol. 30(3), pages 452-466.
    3. Durand, Rodolphe & Hadida, Allègre L., 2016. "Logic combination and performance across occupational communities: The case of French film directors," Journal of Business Research, Elsevier, vol. 69(7), pages 2371-2379.
    4. Antoaneta P. Petkova & Violina P. Rindova & Anil K. Gupta, 2013. "No News Is Bad News: Sensegiving Activities, Media Attention, and Venture Capital Funding of New Technology Organizations," Organization Science, INFORMS, vol. 24(3), pages 865-888, June.
    5. Brinja Meiseberg & Thomas Ehrmann, 2013. "Diversity in teams and the success of cultural products," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 37(1), pages 61-86, February.
    6. Wijnberg, Nachoem M., 2011. "Classification systems and selection systems: The risks of radical innovation and category spanning," Scandinavian Journal of Management, Elsevier, vol. 27(3), pages 297-306, September.
    7. Shamir, Noam & Zvilichovsky, David, 2022. "Dynamic reputation, project selection and market efficiency: The importance of small projects," International Journal of Production Economics, Elsevier, vol. 248(C).
    8. Wei, Liyuan & Yang, Yupin, 2022. "An empirical investigation of director selection in movie preproduction: A two-sided matching approach," International Journal of Research in Marketing, Elsevier, vol. 39(3), pages 888-906.
    9. Eileen Fischer & Rebecca Reuber, 2007. "The Good, the Bad, and the Unfamiliar: The Challenges of Reputation Formation Facing New Firms," Entrepreneurship Theory and Practice, , vol. 31(1), pages 53-75, January.
    10. Allègre Hadida, 2010. "Commercial success and artistic recognition of motion picture projects," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 34(1), pages 45-80, February.
    11. Hoenen, Sebastian & Kolympiris, Christos & Schoenmakers, Wilfred & Kalaitzandonakes, Nicholas, 2014. "The diminishing signaling value of patents between early rounds of venture capital financing," Research Policy, Elsevier, vol. 43(6), pages 956-989.
    12. Roberto Parente & Rosangela Feola & Valentina Cucino & Gemma Catolino, 2015. "Visibility and Reputation of New Entrepreneurial Projects from Academia: the Role of Start-Up Competitions," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(3), pages 551-567, September.
    13. Ko, Eun-Jeong & McKelvie, Alexander, 2018. "Signaling for more money: The roles of founders' human capital and investor prominence in resource acquisition across different stages of firm development," Journal of Business Venturing, Elsevier, vol. 33(4), pages 438-454.
    14. Manning, Stephan, 2017. "The rise of project network organizations: Building core teams and flexible partner pools for interorganizational projects," Research Policy, Elsevier, vol. 46(8), pages 1399-1415.
    15. Christos Kolympiris & Sebastian Hoenen & Nicholas Kalaitzandonakes, 2018. "Geographic distance between venture capitalists and target firms and the value of quality signals," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(1), pages 189-220.
    16. Natalia Gmerek, 2015. "The determinants of Polish movies’ box office performance in Poland," Journal of Marketing and Consumer Behaviour in Emerging Markets, University of Warsaw, Faculty of Management, vol. 1(1), pages 15-35.
    17. Hofmann, Julian & Clement, Michel & Völckner, Franziska & Hennig-Thurau, Thorsten, 2017. "Empirical generalizations on the impact of stars on the economic success of movies," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 442-461.
    18. Julien Jourdan, 2018. "Institutional Specialization and Survival: Theory and Evidence from the French Film Industry," Strategy Science, INFORMS, vol. 3(2), pages 408-425, June.
    19. Julien Jourdan, 2018. "Institutional Specialization and Survival : Theory and Evidence From the French Film Industry," Post-Print hal-01819590, HAL.
    20. Fisher, Greg & Kuratko, Donald F. & Bloodgood, James M. & Hornsby, Jeffrey S., 2017. "Legitimate to whom? The challenge of audience diversity and new venture legitimacy," Journal of Business Venturing, Elsevier, vol. 32(1), pages 52-71.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jculte:v:36:y:2012:i:3:p:227-248. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.