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Knowledge based resources, property based resources and supplier bargaining power in Hollywood motion picture projects

  • Skilton, Paul F.
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    Supplier bargaining power is a factor that must be considered in resource based theories of dynamic capability. As competitors develop capabilities for dynamically changing resource configurations, they become more reliant on suppliers and allies. Because different types of supplier will have more or less bargaining power, some resource configurations will be more attractive to buyers. Hypotheses are developed and tested using data on star power, intellectual property, knowledge based resource quality, costs and revenues for 278 motion pictures released in the United States in 2000 and 2001. Suppliers appear to fully appropriate returns to knowledge and property based services, while buyers benefit from control of intellectual property and from the combination of intellectual property and talent behind the camera.

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    File URL: http://www.sciencedirect.com/science/article/B6V7S-4SRDF9S-1/2/7bf0d6eda6b8f20c933fd7a93483d801
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    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 62 (2009)
    Issue (Month): 8 (August)
    Pages: 834-840

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    Handle: RePEc:eee:jbrese:v:62:y:2009:i:8:p:834-840
    Contact details of provider: Web page: http://www.elsevier.com/locate/jbusres

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    1. Darlene Chisholm, 2004. "Two-Part Share Contracts, Risk, and the Life Cycle of Stars: Some Empirical Results from Motion Picture Contracts," Journal of Cultural Economics, Springer, vol. 28(1), pages 37-56, February.
    2. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-95, December.
    3. Richard Whitley, 2006. "Project-based firms: new organizational form or variations on a theme?," Industrial and Corporate Change, Oxford University Press, vol. 15(1), pages 77-99, February.
    4. Steven Albert, 1998. "Movie Stars and the Distribution of Financially Successful Films in the Motion Picture Industry," Journal of Cultural Economics, Springer, vol. 22(4), pages 249-270, December.
    5. 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, vol. 23(4), pages 285-318, November.
    6. Ravid, S Abraham, 1999. "Information, Blockbusters, and Stars: A Study of the Film Industry," The Journal of Business, University of Chicago Press, vol. 72(4), pages 463-92, October.
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