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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

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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  • Joseph Lampel & Jamal Shamsie, 2003. "Capabilities in Motion: New Organizational Forms and the Reshaping of the Hollywood Movie Industry," Journal of Management Studies, Wiley Blackwell, vol. 40(8), pages 2189-2210, December.
  • Handle: RePEc:bla:jomstd:v:40:y:2003:i:8:p:2189-2210
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    Cited by:

    1. Marleen Dieleman & Wladimir M. Sachs, 2008. "Coevolution of Institutions and Corporations in Emerging Economies: How the Salim Group Morphed into an Institution of Suharto's Crony Regime," Journal of Management Studies, Wiley Blackwell, vol. 45(7), pages 1274-1300, November.
    2. repec:spr:orspec:v:40:y:2018:i:1:d:10.1007_s00291-017-0492-0 is not listed on IDEAS
    3. 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.
    4. 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 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.
    5. Wang, Chao-Hung, 2014. "How relational capital mediates the effect of corporate reputation on competitive advantage: Evidence from Taiwan high-tech industry," Technological Forecasting and Social Change, Elsevier, vol. 82(C), pages 167-176.
    6. 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.
    7. Richard Arend, 2013. "Ethics-focused dynamic capabilities: a small business perspective," Small Business Economics, Springer, vol. 41(1), pages 1-24, June.
    8. 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.
    9. Azadegan, Arash & Wagner, Stephan M., 2011. "Industrial upgrading, exploitative innovations and explorative innovations," International Journal of Production Economics, Elsevier, vol. 130(1), pages 54-65, March.
    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. repec:eee:iburev:v:26:y:2017:i:6:p:1088-1099 is not listed on IDEAS
    12. Christina Teipen, 2016. "The Implications of the Value Chain and Financial Institutions for Work and Employment: Insights from the Video Game Industry in Poland, Sweden and Germany," British Journal of Industrial Relations, London School of Economics, vol. 54(2), pages 311-333, June.
    13. repec:gam:jsusta:v:10:y:2018:i:7:p:2244-:d:155274 is not listed on IDEAS
    14. repec:kap:jculte:v:41:y:2017:i:4:d:10.1007_s10824-016-9273-x is not listed on IDEAS
    15. 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.
    16. 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.
    17. Wu, Yuanyuan & Wu, Shikui, 2016. "Managing ambidexterity in creative industries: A survey," Journal of Business Research, Elsevier, vol. 69(7), pages 2388-2396.
    18. Storz, Cornelia & Riboldazzi, Federico & John, Moritz, 2015. "Mobility and innovation: A cross-country comparison in the video games industry," Research Policy, Elsevier, vol. 44(1), pages 121-137.
    19. Richard Arend, 2014. "Entrepreneurship and dynamic capabilities: how firm age and size affect the ‘capability enhancement–SME performance’ relationship," Small Business Economics, Springer, vol. 42(1), pages 33-57, January.

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