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Resource Partitioning, the Founding of Specialist Firms, and Innovation: The American Feature Film Industry, 1912–1929

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  • John M. Mezias

    (Department of Management, University of Miami, 414 R Jenkins Building, Coral Gables, Florida, 33124)

  • Stephen J. Mezias

    (Department of Management/Organizational Behavior, New York University, 44 West 4th Street, New York, New York, 10012)

Abstract

Past research has established that large bureaucratic firms are less innovative than other firms. This reduced innovativeness is likely to be exacerbated when large firms engage in market control. In cultural industries, the effects can be especially pernicious, resulting in the failure to provide audiences with artistic quality or product diversity. We investigate the population dynamics of one cultural industry: the early American feature film industry. Specifically, we examine the hypothesis that concentration among large generalist firms will be associated with higher rates of foundings of specialist producers and specialist distributors. We also investigate the question of whether these specialists are more innovative. Specifically, we examine the hypothesis that specialists were more active than were generalists in the creation of new film genres in the early years of the American film industry. We find that increased concentration among generalists had a positive effect on foundings of specialist producers and specialist distributors, and that the specialists were more active in the creation of new film genres. Implications of these findings for future research, both on cultural industries and on the population dynamics of the founding of specialist firms, are discussed.

Suggested Citation

  • John M. Mezias & Stephen J. Mezias, 2000. "Resource Partitioning, the Founding of Specialist Firms, and Innovation: The American Feature Film Industry, 1912–1929," Organization Science, INFORMS, vol. 11(3), pages 306-322, June.
  • Handle: RePEc:inm:ororsc:v:11:y:2000:i:3:p:306-322
    DOI: 10.1287/orsc.11.3.306.12504
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    References listed on IDEAS

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    1. R. E. Caves & M. E. Porter, 1977. "From Entry Barriers to Mobility Barriers: Conjectural Decisions and Contrived Deterrence to New Competition," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 91(2), pages 241-261.
    2. Stephen J. Mezias & Mary Ann Glynn, 1993. "The three faces of corporate renewal: Institution, revolution, and evolution," Strategic Management Journal, Wiley Blackwell, vol. 14(2), pages 77-101, February.
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    Cited by:

    1. Gerben Bakker, 2005. "The decline and fall of the European film industry: sunk costs, market size, and market structure, 1890–1927," Economic History Review, Economic History Society, vol. 58(2), pages 310-351, May.
    2. Ramin Vandaie & Akbar Zaheer, 2015. "Alliance Partners and Firm Capability: Evidence from the Motion Picture Industry," Organization Science, INFORMS, vol. 26(1), pages 22-36, February.
    3. Peng, George Z. & Beamish, Paul W., 2019. "Subnational FDI Legitimacy and Foreign Subsidiary Survival," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.
    4. Rosario Silva & Oksana Gerwe, 2024. "Micro Entry Theory: Understanding the Drivers and Effects of the Entry of Micro Players in the Context of Digital Platforms," Journal of Management Studies, Wiley Blackwell, vol. 61(6), pages 2633-2661, September.
    5. Shu, Li & Wang, Wei, 2023. "Human capital and trademarks: Evidence from higher education expansion in China," Research Policy, Elsevier, vol. 52(10).
    6. Castaldi, Carolina, 2018. "To trademark or not to trademark: The case of the creative and cultural industries," Research Policy, Elsevier, vol. 47(3), pages 606-616.
    7. 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.
    8. Khwan Kim & Noah Askin, 2024. "Feature-Based Structures of Opportunity: Genre Innovation in the American Popular Music Industry, 1958 to 2016," American Sociological Review, , vol. 89(3), pages 542-583, June.
    9. F. Ted Tschang & Gokhan Ertug, 2016. "New Blood as an Elixir of Youth: Effects of Human Capital Tenure on the Explorative Capability of Aging Firms," Organization Science, INFORMS, vol. 27(4), pages 873-892, August.
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    11. Yubin Yang & Seungyoup Choo & Seong-Joon Limb, 2023. "Vertical Integration Strategies and Environmental Uncertainty: China’s Film Industry," SAGE Open, , vol. 13(1), pages 21582440231, February.

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