The effects of having more than one good reputation on distributor investments in the film industry
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
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 36 (2012)
Issue (Month): 3 (August)
|Contact details of provider:|| Web page: http://www.springer.com|
Web page: http://www.culturaleconomics.org/
More information through EDIRC
|Order Information:||Web: http://www.springer.com/economics/journal/10824/PS2|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Scott Shane & Daniel Cable, 2002. "Network Ties, Reputation, and the Financing of New Ventures," Management Science, INFORMS, vol. 48(3), pages 364-381, March.
- 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.
- 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.
- Hsu, David H., 2007. "Experienced entrepreneurial founders, organizational capital, and venture capital funding," Research Policy, Elsevier, vol. 36(5), pages 722-741, June.
- Paul R. Milgrom & John Roberts, 1984.
"Price and Advertising Signals of Product Quality,"
Cowles Foundation Discussion Papers
709, Cowles Foundation for Research in Economics, Yale University.
- Carl Shapiro, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, Oxford University Press, vol. 98(4), pages 659-679.
- 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.
- 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.
- 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, 07.
- 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.
- 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.
- 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.
- 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, vol. 12(1), pages 27-67, February.
- 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.
- 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.
- 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.
- 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, 07.
- 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.
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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.