IDEAS home Printed from https://ideas.repec.org/a/sae/intare/v14y2011i2p115-140.html
   My bibliography  Save this article

Does China Love Hollywood? An Empirical Study on the Determinants of the Box-Office Performance of the Foreign Films in China

Author

Listed:
  • Jooyoung Kwak
  • Liyue Zhang

Abstract

Although the sales of the motion-picture industry in China have grown incomparably to any other country during the past decade, most research related to it has focused on discourse of the political or social contexts. Using the resource-based view, our study empirically examines the determinants that encourage the audience to pay for a movie at China's box offices. The resource-based view posits that a firm or product's competitiveness arises from valuable resources that appeal to consumers. In line with this, we hypothesized that box-office performance is affected by marketing-related resources and by a certain set of strategic variables embedded in individual films. We constructed our dataset based on the foreign films imported to and released in China from 2007 to 2009, and conducted a regression analysis. The statistical results suggest that actor reputation, China-related contents and Chinese crew participation in the movie production, and release timing are significantly related to the box-office performance of foreign films in China. We present an interpretation of our statistical results, linking to the characteristics of the current Chinese audience as a consumer for foreign films.

Suggested Citation

  • Jooyoung Kwak & Liyue Zhang, 2011. "Does China Love Hollywood? An Empirical Study on the Determinants of the Box-Office Performance of the Foreign Films in China," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 14(2), pages 115-140, June.
    • Handle: RePEc:sae:intare:v:14:y:2011:i:2:p:115-140
    DOI: 10.1177/223386591101400205
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/223386591101400205
    Download Restriction: no
    File URL: https://libkey.io/10.1177/223386591101400205?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
    ---><---

    References listed on IDEAS

    as
    1. Jehoshua Eliashberg & Anita Elberse & Mark A.A.M. Leenders, 2006. "The Motion Picture Industry: Critical Issues in Practice, Current Research, and New Research Directions," Marketing Science, INFORMS, vol. 25(6), pages 638-661, 11-12.
    2. Vijay Mahajan & Eitan Muller & Roger A. Kerin, 1984. "Introduction Strategy for New Products with Positive and Negative Word-of-Mouth," Management Science, INFORMS, vol. 30(12), pages 1389-1404, December.
    3. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    4. Richard P. Rumelt, 1991. "How much does industry matter?," Strategic Management Journal, Wiley Blackwell, vol. 12(3), pages 167-185, March.
    5. Ramya Neelamegham & Pradeep Chintagunta, 1999. "A Bayesian Model to Forecast New Product Performance in Domestic and International Markets," Marketing Science, INFORMS, vol. 18(2), pages 115-136.
    6. De Vany, A. & Walls, W.D., 1999. ""Uncertainty in the Movies: Does Star Power Reduce the Terror of the Box Office?"," Papers 98-99-10, California Irvine - School of Social Sciences.
    7. Wong, Chi-Sum & Law, Kenneth S., 1999. "Managing localization of human resources in the PRC: a practical model," Journal of World Business, Elsevier, vol. 34(1), pages 26-40, April.
    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. Gaenssle Sophia & Budzinski Oliver & Astakhova Daria, 2018. "Conquering the Box Office: Factors Influencing Success of International Movies in Russia," Review of Network Economics, De Gruyter, vol. 17(4), pages 245-266, December.
    2. Guangchao Charles Feng, 2017. "The dynamics of the Chinese film industry: factors affecting Chinese audiences’ intentions to see movies," Asia Pacific Business Review, Taylor & Francis Journals, vol. 23(5), pages 658-676, October.

    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. Delre, Sebastiano A. & Panico, Claudio & Wierenga, Berend, 2017. "Competitive strategies in the motion picture industry: An ABM to study investment decisions," International Journal of Research in Marketing, Elsevier, vol. 34(1), pages 69-99.
    2. S. Hun Seog & Yong J. Hyun, 2009. "Financing as a Marketing Strategy," Marketing Science, INFORMS, vol. 28(3), pages 526-540, 05-06.
    3. Gazley, Aaron & Clark, Gemma & Sinha, Ashish, 2011. "Understanding preferences for motion pictures," Journal of Business Research, Elsevier, vol. 64(8), pages 854-861, August.
    4. Harsh W. Mishra, 2012. "Book Review: Catherine A. Maritan and Margaret A. Peteraf (Eds), Competitive Strategy, Vols I and II," Vision, , vol. 16(3), pages 222-226, September.
    5. Darren Filson & James H. Havlicek, 2018. "The performance of global film franchises: installment effects and extension decisions," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 42(3), pages 447-467, August.
    6. Alp Eren Yurtseven & Mehmet Teoman Pamukçu, 2022. "Innovation patterns in firms and intra-industry heterogeneity empirical evidence from Turkey," Evolutionary and Institutional Economics Review, Springer, vol. 19(2), pages 645-679, September.
    7. Angela (Xia) Liu & Tridib Mazumdar & Bo Li, 2015. "Counterfactual Decomposition of Movie Star Effects with Star Selection," Management Science, INFORMS, vol. 61(7), pages 1704-1721, July.
    8. Hsu, Bo-Xiang & Chen, Yi-Min & Yan, Ting-Yu, 2021. "Industrial targeting and firm performance: An integrated approach to industry selection," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    9. Brianna JeeWon Paulich & V. Kumar, 2021. "Relating entertainment features in screenplays to movie performance: an empirical investigation," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1222-1242, November.
    10. Suman Basuroy & S. Abraham Ravid & Richard T. Gretz & B. J. Allen, 2020. "Is everybody an expert? An investigation into the impact of professional versus user reviews on movie revenues," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(1), pages 57-96, March.
    11. Jason M. T. Roos & Ron Shachar, 2014. "When Kerry Met Sally: Politics and Perceptions in the Demand for Movies," Management Science, INFORMS, vol. 60(7), pages 1617-1631, July.
    12. Philipp Mundt & Simone Alfarano & Mishael Milaković, 2022. "Survival and the Ergodicity of Corporate Profitability," Management Science, INFORMS, vol. 68(5), pages 3726-3734, May.
    13. Kohls, Tobias & Mager, Ferdinand & Regele, Tobias, 2023. "Competitive advantage and firm, industry, and country effects: An asset pricing perspective," Journal of Economics and Business, Elsevier, vol. 127(C).
    14. Carlos Pestana Barros & Eduardo Couto & Antonio Samagaio, 2014. "Management ability, strategy, tactics and team performance," Chapters, in: John Goddard & Peter Sloane (ed.), Handbook on the Economics of Professional Football, chapter 11, pages 166-188, Edward Elgar Publishing.
    15. Olubanjo Adetunji & Akintola Owolabi, 2016. "Firm Performance and Its Drivers: How Important Are the Industry and Firm-Level Factors?," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(11), pages 1-60, November.
    16. Oguzhan Ozturk, 2021. "Bibliometric review of resource dependence theory literature: an overview," Management Review Quarterly, Springer, vol. 71(3), pages 525-552, July.
    17. Stefan Stremersch & Jorge Gonzalez & Albert Valenti & Julian Villanueva, 2023. "The value of context-specific studies for marketing," Journal of the Academy of Marketing Science, Springer, vol. 51(1), pages 50-65, January.
    18. Anita Elberse & Jehoshua Eliashberg, 2003. "Demand and Supply Dynamics for Sequentially Released Products in International Markets: The Case of Motion Pictures," Marketing Science, INFORMS, vol. 22(3), pages 329-354.
    19. Zhen, Xueping & (George) Cai, Gangshu & Song, Reo & Jang, Sungha, 2019. "The effects of herding and word of mouth in a two-period advertising signaling model," European Journal of Operational Research, Elsevier, vol. 275(1), pages 361-373.
    20. 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.

    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:sae:intare:v:14:y:2011:i:2:p:115-140. 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: SAGE Publications (email available below). General contact details of provider: http://www.hufs.ac.kr/user/hufsenglish/re_1.jsp .

    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.