IDEAS home Printed from https://ideas.repec.org/a/kap/jculte/v45y2021i2d10.1007_s10824-020-09389-x.html
   My bibliography  Save this article

What does it take to survive in a digital world? Resource-based theory and strategic change in the TV industry

Author

Listed:
  • Ricarda Schauerte

    (University of Münster)

  • Stéphanie Feiereisen

    (Montpellier Research in Management: MRM, EA 4557, Univ. Montpellier)

  • Alan J. Malter

    (University of Illinois at Chicago)

Abstract

Traditional linear television has been a long-standing success story. However, the digital revolution is rapidly transforming the TV industry, in terms of production, distribution, and consumption. New market opportunities are attracting competitors from outside the industry, and incumbent TV companies must evolve in order to stay competitive and survive in a new digital world. Taking an institutional perspective, the authors develop a conceptual framework that identifies four strategic diversification options which TV firms can pursue to transform their traditional business synergistically: (1) remain a linear-only TV company; (2) combine the linear offering with advertising-based video-on-demand services; (3) combine the linear offering with subscription-based video-on-demand services, or (4) combine the linear offering with both kinds of video-on-demand services. Building on resource-based theory, the authors examine which sets of market-oriented and internal strategic resources are necessary for each strategic option. Specifically, they highlight the value propositions that linear TV can still offer in the digital age, and how TV companies can create unique advantages by leveraging synergies between linear and video-on-demand services. The authors provide guidelines for TV companies to manage the organizational transition and propose an agenda for future academic research.

Suggested Citation

  • Ricarda Schauerte & Stéphanie Feiereisen & Alan J. Malter, 2021. "What does it take to survive in a digital world? Resource-based theory and strategic change in the TV industry," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 45(2), pages 263-293, June.
    • Handle: RePEc:kap:jculte:v:45:y:2021:i:2:d:10.1007_s10824-020-09389-x
    DOI: 10.1007/s10824-020-09389-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10824-020-09389-x
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10824-020-09389-x?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. Hannes Datta & George Knox & Bart J. Bronnenberg, 2018. "Changing Their Tune: How Consumers’ Adoption of Online Streaming Affects Music Consumption and Discovery," Marketing Science, INFORMS, vol. 37(1), pages 5-21, January.
    2. Christian Peukert, 2019. "The next wave of digital technological change and the cultural industries," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 43(2), pages 189-210, June.
    3. Binken, J.L.G. & Stremersch, S., 2008. "The Effect of Superstar Software on Hardware Sales in System Markets," ERIM Report Series Research in Management ERS-2008-025-MKT, 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.
    4. Thorsten Hennig-Thurau & Mark B. Houston, 2019. "Entertainment Science," Springer Books, Springer, number 978-3-319-89292-4, September.
    5. Feiereisen, Stephanie & Rasolofoarison, Dina & De Valck, Kristine & Schmitt, Julien, 2019. "Understanding emerging adults' consumption of TV series in the digital age: A practice-theory-based approach," Journal of Business Research, Elsevier, vol. 95(C), pages 253-265.
    6. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    7. Haeyop Song & Jaemin Jung & Daegon Cho, 2017. "Platform Competition in the Video Game Console Industry: Impacts of Software Quality and Exclusivity on Market Share," Journal of Media Economics, Taylor & Francis Journals, vol. 30(3), pages 99-120, July.
    8. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    9. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    10. Vogel,Harold L., 2015. "Entertainment Industry Economics," Cambridge Books, Cambridge University Press, number 9781107075290, February.
    11. Park, C Whan & Lessig, V Parker, 1981. "Familiarity and Its Impact on Consumer Decision Biases and Heuristics," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 8(2), pages 223-230, September.
    12. Peter O. Steiner, 1952. "Program Patterns and Preferences, and the Workability of Competition in Radio Broadcasting," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 66(2), pages 194-223.
    13. Bettman, James R & Park, C Whan, 1980. "Effects of Prior Knowledge and Experience and Phase of the Choice Process on Consumer Decision Processes: A Protocol Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 7(3), pages 234-248, December.
    14. Birger Wernerfelt & Aneel Karnani, 1987. "Competitive strategy under uncertainty," Strategic Management Journal, Wiley Blackwell, vol. 8(2), pages 187-194, March.
    15. Richard Wurff, 2005. "Competition, Concentration and Diversity in European Television Markets," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 29(4), pages 249-275, November.
    16. Mark Armstrong, 2006. "Competition in two‐sided markets," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 668-691, September.
    17. Herhausen, Dennis & Binder, Jochen & Schoegel, Marcus & Herrmann, Andreas, 2015. "Integrating Bricks with Clicks: Retailer-Level and Channel-Level Outcomes of Online–Offline Channel Integration," Journal of Retailing, Elsevier, vol. 91(2), pages 309-325.
    18. Marvin B. Lieberman & David B. Montgomery, 1988. "First‐mover advantages," Strategic Management Journal, Wiley Blackwell, vol. 9(S1), pages 41-58, June.
    19. Sayan Chatterjee & Birger Wernerfelt, 1991. "The link between resources and type of diversification: Theory and evidence," Strategic Management Journal, Wiley Blackwell, vol. 12(1), pages 33-48, January.
    20. Bagozzi, Richard P, 2000. "On the Concept of Intentional Social Action in Consumer Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 27(3), pages 388-396, December.
    21. Sullivan, Mary, 1990. "Measuring Image Spillovers in Umbrella-Branded Products," The Journal of Business, University of Chicago Press, vol. 63(3), pages 309-329, July.
    22. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    23. Alicia Barroso & Marco S. Giarratana & Samira Reis & Olav Sorenson, 2016. "Crowding, satiation, and saturation: The days of television series' lives," Strategic Management Journal, Wiley Blackwell, vol. 37(3), pages 565-585, March.
    24. Mark B. Houston & Ann-Kristin Kupfer & Thorsten Hennig-Thurau & Martin Spann, 2018. "Pre-release consumer buzz," Journal of the Academy of Marketing Science, Springer, vol. 46(2), pages 338-360, March.
    25. Joel Waldfogel, 2017. "The Random Long Tail and the Golden Age of Television," Innovation Policy and the Economy, University of Chicago Press, vol. 17(1), pages 1-25.
    26. Margaret A. Peteraf & Jay B. Barney, 2003. "Unraveling the resource-based tangle," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(4), pages 309-323.
    27. Mary Tripsas, 2009. "Technology, Identity, and Inertia Through the Lens of “The Digital Photography Company”," Organization Science, INFORMS, vol. 20(2), pages 441-460, April.
    28. Hoyer, Wayne D & Brown, Steven P, 1990. "Effects of Brand Awareness on Choice for a Common, Repeat-Purchase Product," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(2), pages 141-148, September.
    29. Esther Gal-Or & Mordechai Gal-Or & Jerrold H. May & William E. Spangler, 2006. "Targeted Advertising Strategies on Television," Management Science, INFORMS, vol. 52(5), pages 713-725, May.
    30. Sylvia Chan-Olmsted & Jae-Won Kang, 2003. "Theorizing the Strategic Architecture of a Broadband Television Industry," Journal of Media Economics, Taylor & Francis Journals, vol. 16(1), pages 3-21.
    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. 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.
    2. Miao, Ruomu & Li, Benqian, 2022. "A user-portraits-based recommendation algorithm for traditional short video industry and security management of user privacy in social networks," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    3. Liu, Yu-li & Tian, Li & Li, Changyan & Wu, Yanfei, 2024. "Analyzing the competitiveness and strategies of Chinese mobile network operators in the 5G era," Telecommunications Policy, Elsevier, vol. 48(2).
    4. Bin Zhang & Li Sun & Mengyao Yang & Kin-Keung Lai & Bhagwat Ram, 2023. "A Robust Optimization Approach for Smart Energy Market Revenue Management," Energies, MDPI, vol. 16(19), pages 1-14, October.
    5. Thorsten Hennig-Thurau & S. Abraham Ravid & Olav Sorenson, 2021. "The Economics of Filmed Entertainment in the Digital Era," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 45(2), pages 157-170, June.

    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. Judith Cavazos-Arroyo & Rogelio Puente-Diaz, 2019. "The Influence of Marketing Capability in Mexican Social Enterprises," Sustainability, MDPI, vol. 11(17), pages 1-15, August.
    2. J. P. Eggers & Sarah Kaplan, 2009. "Cognition and Renewal: Comparing CEO and Organizational Effects on Incumbent Adaptation to Technical Change," Organization Science, INFORMS, vol. 20(2), pages 461-477, April.
    3. Ansari, Shahzad (Shaz) & Krop, Pieter, 2012. "Incumbent performance in the face of a radical innovation: Towards a framework for incumbent challenger dynamics," Research Policy, Elsevier, vol. 41(8), pages 1357-1374.
    4. Jackson K. Maingi & Zachary B. Awino & Peter O. KObonyo & Ganesh P. Pokhariyal, 2021. "Does Organizational Structure Moderate the Relationship between Strategic Planning and Competitive Advantage? A Study of Large Manufacturing Firms in Kenya," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(5), pages 141-141, July.
    5. Huayong Du & Ying Teng & Zhenzhong Ma & Xuguang Guo, 2022. "Value Creation in Platform Enterprises: A Fuzzy-Set Qualitative Comparative Analysis," Sustainability, MDPI, vol. 14(9), pages 1-21, April.
    6. Zeng, Jing & Mahdi Tavalaei, M. & Khan, Zaheer, 2021. "Sharing economy platform firms and their resource orchestration approaches," Journal of Business Research, Elsevier, vol. 136(C), pages 451-465.
    7. Claudio Vitari & Elisabetta Raguseo, 2016. "Big data value and financial performance: an empirical investigation [Digital data, dynamic capability and financial performance: an empirical investigation in the era of Big Data]," Post-Print halshs-01923271, HAL.
    8. Jim Andersén, 2023. "Green resource orchestration: A critical appraisal of the use of resource orchestration in environmental management research, and a research agenda for future study," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5506-5520, December.
    9. Zhang-Zhang, YingYing & Rohlfer, Sylvia & Varma, Arup, 2022. "Strategic people management in contemporary highly dynamic VUCA contexts: A knowledge worker perspective," Journal of Business Research, Elsevier, vol. 144(C), pages 587-598.
    10. Patnaik, Swetketu & Munjal, Surender & Varma, Arup & Sinha, Sujay, 2022. "Extending the resource-based view through the lens of the institution-based view: A longitudinal case study of an Indian higher educational institution," Journal of Business Research, Elsevier, vol. 147(C), pages 124-141.
    11. Mahavarpour, Nasrin & Marvi, Reza & Foroudi, Pantea, 2023. "A Brief History of Service Innovation: The evolution of past, present, and future of service innovation," Journal of Business Research, Elsevier, vol. 160(C).
    12. Jonathan Mwau Mulwa, 2020. "Firm Size And Performance: An Econometric Analysis Of The Financial Performance Of Deposit Taking Microfinance Institutions In Kenya," Noble International Journal of Economics and Financial Research, Noble Academic Publsiher, vol. 5(5), pages 56-62, May.
    13. Abel D Alonso & Seng Kok, 2018. "A resource-based view and dynamic capabilities approach in the context of a region’s international attractiveness: The recent case of Western Australia," Local Economy, London South Bank University, vol. 33(3), pages 307-328, May.
    14. Schriber, Svante & Löwstedt, Jan, 2015. "Tangible resources and the development of organizational capabilities," Scandinavian Journal of Management, Elsevier, vol. 31(1), pages 54-68.
    15. Cleverton Rodrigues Fernandes & André Gustavo Carvalho Machado, 2019. "Technology Transfer Capability: development dynamics in higher education institutions," Brazilian Business Review, Fucape Business School, vol. 16(1), pages 1-15, January.
    16. Cricelli, Livio & Mauriello, Roberto & Strazzullo, Serena, 2023. "Preventing open innovation failures: A managerial framework," Technovation, Elsevier, vol. 127(C).
    17. Dedy Dewanto, 2022. "The characteristic of leader innovativeness, a case in Indonesian’s construction industry," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(8), pages 153-165, November.
    18. McDougall, Natalie & Wagner, Beverly & MacBryde, Jill, 2022. "Competitive benefits & incentivisation at internal, supply chain & societal level circular operations in UK agri-food SMEs," Journal of Business Research, Elsevier, vol. 144(C), pages 1149-1162.
    19. Giovanni Gavetti, 2012. "PERSPECTIVE—Toward a Behavioral Theory of Strategy," Organization Science, INFORMS, vol. 23(1), pages 267-285, February.
    20. Lin, Hsing-Er & Hsu, I-Chieh & Hsu, Audrey Wenhsin & Chung, Hsi-Mei, 2020. "Creating competitive advantages: Interactions between ambidextrous diversification strategy and contextual factors from a dynamic capability perspective," Technological Forecasting and Social Change, Elsevier, vol. 154(C).

    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:45:y:2021:i:2:d:10.1007_s10824-020-09389-x. 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.