Copyright 2008 Journal of Media Business Studies.

Paola Dubini and Bernardo Provera,

Chart Success and Innovation in the Music Industry: Does Organizational Form Matter?
5(1):41-65 (2008).




Chart Success and Innovation
in the Music Industry:
Does Organizational Form Matter?


Paola Dubini
Bernardino Provera
Bocconi University


ABSTRACT In roconf yonrs, modIn IndusfrIos nro IncronsIngIy rognrdod
ns koy soffIngs for frndIfIonnI orgnnIznfIons fo drnw Iossons uon
(MnrkIdos, 2006) ns fnr ns InnovnfIon sfrnfogIos nro concornod, duo fo fho
sfrucfurnI chnngos fhoy nro wIfnossIng, nnd fo fho hIgh nco of
InfroducfIon of now roducfs. Our rosonrch nddrossos dIfforonf
InnovnfIon sfrnfogIos by InvosfIgnfIng fho comofIfIvo dynnmIcs In fho
Inunch of now nrfIsfs In fho !S musIc mnrkof, bofwoon l99l nnd 2005.
Our rosuIfs show fhnf, In n cronfIvo soffIng nffocfod by growIng
onvIronmonfnI furbuIonco, osfnbIIshod fIrms (mnjors) fond fo ndof nn
omorgIng orgnnIznfIonnI form, by osfnbIIshIng nrfnorshIs wIfh
Indoondonf orgnnIznfIons (IndIos), In ordor fo sysfomnfIcnIIy Infroduco
now roducfs. Our rosuIfs nIso show fhnf fho nrfnorshI Is n wInnIng
form onIy whon If Is socIfIcnIIy nImod nf oxIornfIon, fhnf Is fo sny,
whon If rofors fo fho Inunch of now nIbums by rovIousIy unubIIshod
nrfIsf.

KEY WORDS: nIIInncos, InnovnfIon, growfh, rocordIng Indusfry



!osonrchors In orgnnIznfIon nnd mnnngomonf fhoory hnvo IncronsIngIy
bocomo Inforosfod In fho cnncIfy of fIrms fo mnnngo InnovnfIon on n
confInuous bnsIs. ModIn nnd cronfIvo IndusfrIos nro IncronsIngIy
rognrdod ns koy soffIngs for frndIfIonnI orgnnIznfIons fo drnw Iossons
uon (MnrkIdos, 2006), duo fo fho sfrucfurnI chnngos fhoy nro wIfnossIng
nnd fo fho hIgh nco of InfroducfIon of now fIfIos. Thoy nro nIso
oxfromoIy InforosfIng fIoIds of nnnIysIs for onfroronourInI ncfIvIfy, ns
onfroronourInI dynnmIcs, In fho form of fnIonf dIscovory nnd
dovoIomonf, IIo nf fho honrf of fhoso IndusfrIos` vnIuo roosIfIon
42 Dubini and ProveraOrganization Form in the Music Industry

(HosmondhnIgh, 2002). ModIn nnd cuIfurnI IndusfrIos nro rofofyIcnI In
nnfuro (Cnvos, 2000), In fhnf u fo 50 of rovonuos for bofh roducors
nnd dIsfrIbufors nro roInfod fo now fIfIos. Thoroforo, confInuous ronownI
of nrfIsfs` orffoIIos nnd succossfuI mnnngomonf of now fIfIos
InfroducfIon nro sfrnfogIc cnnbIIIfIos fhnf somo comnnIos nonr fo
mnsfor boffor fhnn ofhors; In fhIs nor, wo Iook nf fho InnovnfIvo
ncfIvIfy of fIrms nnd quosfIon whnf fyo of comnnIos nro moro IIkoIy fo
succossfuIIy Infroduco InnovnfIon In fho mnrkof.
On fho ono hnnd, fho onfroronourshI IIfornfuro hns frndIfIonnIIy
sfrossod fho roIo of fho nbIIIfy of IndIvIdunIs fo rocognIzo oorfunIfIos fo
chnngo nnd fo cronfIvoIy dofIno fhoIr snco wIfhIn fho sysfom (Ionroso,
l959). If couId fhoroforo bo oxocfod fhnf onfroronourInI vonfuros wouId
bo fnsfor In grnbbIng now mnrkof oorfunIfIos nnd dovoIo now
roducfs. On fho ofhor hnnd, fho IIfornfuro on Incumbonfs-nowcomors
roInfIonshIs hIghIIghfs fho orvnsIvo cnnbIIIfy of Incumbonfs fo survIvo
In furbuIonf fImos nnd fo ongngo In now roducf dovoIomonf.
Iurfhormoro, fhIs sfronm of rosonrch hns shown fhnf consoIIdnfod
sfrucfuros wIfhIn IndusfrIos, fho oxIsfonco of gnfokooors In bofh
roducfIon nnd dIsfrIbufIon, nnd Incumbonfs` comofIfIvo rofnIInfIon
(Tooco l986; ChnndIor l990; ChrIsfonson, Iowor l996, Tooco, IIsnno,
Shuon l99?) nro nII oworfuI bnrrIors hnmorIng SchumoforInn
InnovnfIons from fIndIng fhoIr snco In fho mnrkof (Crnnf l996;
Andorson & Tushmnn, l990; Znhrn & Iognor, l999). ThIs IIno of
ronsonIng wouId fhoroforo Iond fo oxocf fhnf succoss from InnovnfIvo
bohnvIor wouId fnvor consoIIdnfod Inyors In fho Indusfry; whIIo
onfroronourInI fIrms nro sfrnfogIc ncfors In drIvIng novoI roducfs nnd
sorvIcos, Incumbonfs do onjoy sInck rosourcos nnd comofoncos fhnf
onnbIo fhom fo ovorcomo rosIIIonco nnd somofImos comInconcy nnd bonf
nowcomors sfrnfogIc nnfIcInfIvo InIfInfIvo (TrIsns l99?). Irom fho
orgnnIznfIonnI oInf of vIow, fho chnIIongo of mnnngIng now nnd oId
roducfs wouId roquIro orgnnIznfIonnI soIufIons nIIowIng fIrms fo
sImuIfnnoousIy oxIoro now mnrkof oorfunIfIos nnd fo oxIoIf
consoIIdnfod osIfIons (Mnrch, l99l).
As fyIcnI of mosf modIn soffIngs (soo Cnvos, 2000), fho musIc
Indusfry hns frndIfIonnIIy boon chnrncforIzod by n mnjor vs. IndIo
dunIIfy. Indood, fho mnrkof hns hIsforIcnIIy boon ouInfod by fow Inrgo,
muIfInnfIonnI orgnnIznfIons (mnjors), nnd by n hIgh numbor of nIcho
Inyors (IndIos). Mosf sfudIos on fho musIc Indusfry hnvo focusod on
undorsfnndIng how fho fwo orgnnIznfIonnI modoIs, or forms, InfIuoncod
koy comofIfIvo vnrInbIos IIko InnovnfIon nnd chnrf succoss (!oos, l992;
owd, 2004; OrdnnInI, 2006). In roconf yonrs, fhough, fho roIIfornfIon of
Infor-fIrm nIIInncos hns ushod rosonrchors fo IncronsIngIy oxIoro fho
roIo of fhoso nofworks In nffocfIng fho orformnnco of mombor fIrms (soo
for oxnmIo CuInfI, l998; CuInfI, of nI, 2000); In fho musIc Indusfry,
fhoso nofworks nro offon shnod In fho form of nrfnorshIs; n
nrfnorshI Is n ono-off rojocf fhnf occurs whon n mnjor nnd nn IndIo co-
roduco nn nIbum, roIonsIng If vIn co-brnndIng.
Journal of Media Business Studies 43

In fhIs nrfIcIo, wo nro Inforosfod In oxIorIng fho oxfonf fo whIch
dIfforonf orgnnIznfIonnI forms (nnmoIy mnjor, IndIo or nrfnorshI) nro
conducIvo for InnovnfIon; our omIrIcnI bnso consIsfs of fho !S musIc
Indusfry bofwoon l99l nnd 2005.
Wo IdonfIfIod fho musIc Indusfry ns n rovoInfory soffIng fo
InvosfIgnfo fho dynnmIcs of InnovnfIvo orformnnco In n modIn soffIng
for n vnrIofy of ronsons. IIrsf, fho musIc Indusfry Is n hyor-comofIfIvo
'chnrf busInoss` (Joffcuff & Irnff, 2002), In whIch fho nchIovomonf nnd
susfnInnbIIIfy of comofIfIvo ndvnnfngo doonds on fho voIumo nnd IovoI
of roducf succoss ovor n fyIcnIIy shorf fImo snn. Socond, fho musIc
Indusfry Is chnrncforIzod by oxfromoIy hIgh rnfos of fnIIuro of now
vonfuros, ns onIy l0-l5 of now nIbums mnnngo fo bronk ovon (Iurnoff,
l999). IInnIIy, fho Indusfry hns roconfIy oxorIoncod drnmnfIc
onvIronmonfnI furbuIonco, cnusod by fho dIffIcuIfy by Incumbonfs fo
oxIoIf nn oxfornnIIy-orIgInnfod fochnoIogy, fho m3 comrossIon formnf
(Inrfo, 2004). Tho !S mnrkof wns choson bocnuso of Ifs sIzo nnd
roIovnnco In shnIng fho Indusfry bohnvIor nf fho gIobnI IovoI.
Our rosonrch fIfs In fho brondor dIscussIon on whnf orgnnIznfIonnI
form Is moro InsfrumonfnI for n succossfuI mnnngomonf of InnovnfIon;
sInco fho somInnI work of Cyorf nnd Mnrch (l963), mnnngomonf schoInrs
hnvo boon Inforosfod In undorsfnndIng how comnnIos mnxImIzo fhoIr
orformnnco by bnInncIng oxIornfIvo bohnvIor Info now domnIns wIfh
moro consorvnfIvo bohnvIors dIrocfod fo oxIoIfIng ronfs. As Infor-fIrm
nIIInncos nro IncronsIngIy usod fo coo wIfh fho cosfs nnd rIsks nssocInfod
fo InnovnfIvo bohnvIor, somo schoInrs (o.g. CuInfI, l999; !nvIo, 2006)
nrguo fhnf comofoncos fhnf nro omboddod In fho nrfnorshI Imncf fho
orformnnco of Inforconnocfod fIrms. Thoroforo, In fhIs sfudy wo sook fo
nnswor fo fho foIIowIng quosfIons: WhIch orgnnIznfIonnI form Is moro
InnovnfIvo WhIch orgnnIznfIonnI form Is moro succossfuI In mnnngIng
InnovnfIon
Wo cnfuro orgnnIznfIonnI form by focusIng on fho dIsfIncfIon
bofwoon mnjor fIrms, Indoondonfs, nnd nrfnorshI nIIInncos. Wo
consIdor fho nnfuro of onfroronourInI succoss ns fwofoId, onfnIIIng
commorcInI orformnnco bofh In forms of onk osIfIon nnd In forms of
ronfs susfnInnbIIIfy, nnd wo fnko Info consIdornfIon fho InfonsIfy of
InnovnfIvo ncfIvIfy by dIsfInguIshIng bofwoon now fIfIos offorod by now
nrfIsfs, now fIfIos Inunchod by consoIIdnfod nrfIsfs nnd romnkos or
comIInfIons of nsf succossos by consoIIdnfod nrfIsfs. IInnIIy, wo
consIdor fho musIc gonro ns n confroI vnrInbIo. Wo focus on fho
nrfnorshI form ns n novoI fyo of vonfuro, In whIch fho frndIfIonnI
nbIIIfy of Indoondonf fIrms fo oxIoro now domnIns nnd sonrch for now
nrfIsfs (Mnrch, l99l) mIngIos wIfh mnjors` nbIIIfy fo oxIoIf consoIIdnfod
roufInos (oIson & WInfor, l982) fo ronch fo orformnnco for oxfondod
orIods of fImo.
In fhIs nrfIcIo, fhus, wo InvosfIgnfo fho roInfIonshI bofwoon fho
nrfnorshI form nnd chnrf succoss. Our nIm Is fo undorsfnnd whofhor
fho ndofIon of nn omorgIng orgnnIznfIonnI sfrucfuro, foIIowIng
44 Dubini and ProveraOrganization Form in the Music Industry

IncronsIng onvIronmonfnI furbuIonco In n cronfIvo soffIng, mny rodIcf
comofIfIvo oufcomos. Our rosuIfs show fhnf fho nrfnorshI form yIoIds
suorIor orformnnco whon hIgh InnovnfIon Is soughf, fhnf Is fo sny
whon comnnIos Inunch nIbums of rovIousIy unubIIshod nrfIsfs.
Tho nrfIcIo Is orgnnIzod ns foIIows. In fho noxf socfIon, wo rovIow fho
IIfornfuro on mnnngomonf of InnovnfIon, wIfh n socIfIc focus on fho
roInfIonshI bofwoon Incumbonf fIrms nnd now vonfuros, ns woII ns on
fho roIo of orgnnIznfIonnI form In drIvIng InnovnfIon. Wo fhon
confoxfunIIzo If wIfhIn n socIfIc modIn soffIng, fho musIc Indusfry.
SubsoquonfIy, wo dIscuss our mofhodoIogy by IIIusfrnfIng fho
chnrncforIsfIcs of our dnfnbnso, nnd by doscrIbIng our monsuros. Wo fhon
rosonf our rosuIfs nnd wo dIscuss fhom In fho IIghf of curronf rosonrch
on onfroronourshI nnd modIn soffIngs, nnd concIudo by nddrossIng
IImIfnfIons nnd ofonfInI nvonuos for fufuro rosonrch.


REVIEW OF THE LITERATURE
Continuous Innovation and Organizational Form
AII comnnIos fnco fho sfrnfogIc chnIIongo of onsurIng n confInuous fIow
of InnovnfIon, whIIo onjoyIng fho bonofIfs of nsf succossfuI docIsIons.
Tho InforIny bofwoon comnnIos wIfhIn nn IndusfrynnmoIy bofwoon
Incumbonfs nnd nowcomors, ns woII ns bofwoon Inrgo, gonornIIsf fIrms
nnd smnIIor, socInIIsf InyorsIs offon nnnIysod wIfh rosocf fo
onfroronourInI nnd InnovnfIvo dynnmIcs (Huygons, of nI., 200l; !nvIo,
2006). IvorsIfy of Inyors, nmong Incumbonfs ns woII ns nowcomors, Is
offon rognrdod ns n mnjor sourco of sfrnfogIc InnovnfIon. Aron nnd
!nzonr (l990), for Insfnnco, found fhnf now mnrkofs nro IIkoIy fo bo
oonod u by now onfrnnfs, or by fIrms fhnf do nof occuy domInnnf
osIfIons In oxIsfIng mnrkofs. ThIs Is duo fo sovornI ronsons. IIrsf,
comnrod fo Incumbonfs, fhoso fIrms nro IIkoIy fo bonofIf from fho
ndvnnfngo of hIgh-vnrInnco sfrnfogIos. Moroovor, now onfrnnfs do nof
suffor from Issuos of roducf cnnnIbnIIznfIon, whIch rnfhor nffocf
Incumbonfs, In InfroducIng now roducfs. IInnIIy, Incumbonfs nro moro
IIkoIy fo suffor from dIsoconomIos of scoo fhnn now onfrnnfs, so fhnf
onfry In now mnrkofs Is rovon fo bo n Ioss rIsky sfrnfogy for now
onfrnnfs.
Ofhor nufhors hnvo Iookod nf fho roIo of dIfforonf Inyors from fho
oInf of vIow of sfrnfogIc chnngo nf bofh fho Indusfry nnd comnny IovoI
(MnrkIdos, l99?; l998). SfrnfogIc chnngo fnkos Inco whon n comnny
IdonfIfIos gns In Indusfry osIfIonIng, goos nffor fhom nnd, fhon, such
gns grow fo bocomo n now mnss mnrkof. Thoso gns mny consIsf In
omorgIng cusfomor sogmonfs (or oxIsfIng cusfomor sogmonfs Ignorod by
curronf comofIfors), omorgIng cusfomor noods (or oxIsfIng cusfomor
noods nof fuIIy sorvod), nnd now wnys of roducIng, doIIvorIng, nnd
dIsfrIbufIng oxIsfIng (or now) roducfs or sorvIcos fo oxIsfIng (or now)
cusfomor sogmonfs. Thoso gns omorgo bocnuso of chnngIng consumor
Journal of Media Business Studies 45

fnsfos nnd roforoncos, of chnngIng fochnoIogIos nnd roguInfIon, or of
ofhor kInds of oxogonous chnngos, nIfhough n comnny mny roncfIvoIy
sfImuInfo fhom. Tho dIffIcuIfIos fncod by Incumbonfs In donIIng wIfh
sfrnfogIc chnngo nro roInfod fo sovornI fncfors: cnnnIbnIIznfIon,
convonfIonnI wIsdom, InfornnI nnd oxfornnI rIgIdIfy, Incomofonco,
ovorconfIdonco, Iow sonso of urgoncy, ns woII ns n gonornI Inck of
InconfIvo fo nbnndon n corfnIn rosonf (whIch Is rofIfnbIo) for nn
uncorfnIn fufuro (MnrkIdos, l998: 33).
Yof, ovIdonco shows fhnf ovon If nowcomors nro moro IIkoIy fo
IdonfIfy now oorfunIfIos nnd nro moro ncfIvo In InfroducIng now
roducfs In fho mnrkof, Incumbonfs nro offon boffor off In sysfomnfIcnIIy
ursuIng InnovnfIon nnd commorcInIIy rofIfIng from If; sfrongor
fInnncInI osIfIon nIIows fhom fo ncquIro InnovnfIvo onfroronourInI
vonfuros or socInIIzod skIIIs nocossnry fo succossfuIIy susfnIn fho
InnovnfIon fIow, shouId myoIn or orgnnIznfIonnI rosIIIonco hIndor fho
comnny fo fImoIy Infroduco now roducfs. VIowod from fho oInf of vIow
of fho IndIvIdunI comnny wIfhIn fho Indusfry comofIfIvo dynnmIcs, nII
fhoso confrIbufIons shnro fho Idon fhnf nII Inyors nro fncod wIfh fho
chnIIongo of boIng InnovnfIvo, buf fhnf fho InfonsIfy of fho InnovnfIon
ncfIvIfy mny vnry, ns n funcfIon of fho roIo Inyod by fho comnny nnd
fho dogroo of fochnoIogIcnI dIsconfInuIfy nf fho confoxf IovoI. Ono
oxInnnfIon why dIfforonf comnnIos donI wIfh InnovnfIvo bohnvIor In n
dIfforonf wny, Is offorod by fho !IV fhoory of fho fIrm (!umoIf, l984;
WornorfoIf, l984) fhnf concofunIIzos fIrms ns IndIvIdunI onfIfIos
consIsfIng of bundIos of IdIosyncrnfIc rosourcos (Inrnoy, l99l, AmIf &
Shoomnkor, l993) fhnf onch of fhom Iovorngos nnd sfrongfhons In ordor
fo buIId nnd susfnIn comofIfIvo ndvnnfngo.
In fhoIr sfruggIo fo coo wIfh fho nood for n confInuous fIow of
InnovnfIon, comnnIos mny docIdo fo uf In Inco n comofIfIvo or n
cooornfIvo bohnvIor. Tho IIfornfuro concornIng Incumbonf-nowcomors
roInfIonshIs suggosfs fhnf If nowcomors ossoss unIquo nnd
comIomonfnry rosourcos nnd comofoncos, If mIghf bo bofh Inyors`
Inforosf fo ImIomonf co-oofIfIvo sfrnfogIos (Irnndonburgor & nIobuff,
l996). Co-oofIfIon IIfornfuro onhnncos fho ndvnnfngosovon
oorfunIsfIc onosof comofIng ovor corfnIn rosourcos whIIo
cooornfIng ovor comIomonfnry onos. ThIs IIfornfuro nIso hIghIIghfs fho
vnrIofy of cooornfIvo nrrnngomonfs fhnf cnn bo uf In Inco, nIIowIng
fho rofurns nccruIng fo IndIvIdunIs nnd fho coIIocfIvo bonofIfs onjoyod by
nII nrfIos InvoIvod fo bo sImuIfnnoousIy oxIoIfod, fogofhor wIfh fho
vnrIofy of ronf-sookIng bohnvIors nssocInfod wIfh fhIs (!ndo, Ioyd &
HnnIon, l999).
SfrnfogIc nIIInncos nro ono form In whIch such co-oofIfIon fnkos
Inco; for nII comnnIos InvoIvod, sfrnfogIc nIIInncos mny sImuIfnnoousIy
nIIow for InnovnfIvo bohnvIor nnd rIsk mInImIznfIon; In roconf yonrs,
Indood, fho roIo of orgnnIznfIonnI form nnd sfrucfuros hns bocomo
IncronsIngIy roIovnnf, ns orgnnIznfIons hnvo oxfonsIvoIy ongngod In
oufsourcIng rncfIcos, whIch hnvo sIgnIfIcnnfIy nIforod frndIfIonnI
46 Dubini and ProveraOrganization Form in the Music Industry

orgnnIznfIonnI boundnrIos. OufsourcIng nnd fho oxfonsIvo uso of
sfrnfogIc nIIInncos hns nof onIy nffocfod oornfIons nnd roducfIon
rocossos, buf nIso unIfs fhnf nro koy In drIvIng InnovnfIon, IIko !&.
IosIdos oufsourcIng, mnny orgnnIznfIons hnvo nIso ursuod oxfonsIvo
nIIInncos In ordor fo confroI fho IncronsIng comIoxIfy of fho comofIfIvo
nronn. ConsoquonfIy, InnovnfIon ncfIvIfIos nro IncronsIngIy mnnngod
fhrough n nofwork of nIIInncos ombrncIng bofh suIIors nnd comofIfors
(Troff, 2005). ThIs frond chnIIongos bofh sfrnfogy nnd orgnnIznfIon
schoInrs ns If hns sIgnIfIcnnf ImIIcnfIons on fho nIIcnbIIIfy of fho
rosourco-bnsod vIow for Inforconnocfod fIrms (!nvIo, 2006) on fho ono
hnnd nnd on fho roIo of orgnnIznfIonnI form nnd dosIgn In InfIuoncIng koy
orformnnco vnrInbIos on fho ofhor (!nwronco & !orsch, l96?; MIIos &
Snow, l9?8; ohrIn & IccIos, l992); moro socIfIcnIIy, If Is sfIII uncIonr
whnf fho roInfIonshI Is bofwoon fhoso now forms nnd IndIvIdunI fIrms`
orformnnco nnd/or ronIIzod onfroronourInI cnncIfy. On fho ono hnnd,
oufsourcIng mny oso n fhronf fo n fIrm`s onfroronourInI ncfIvIfy, ns
orgnnIznfIons mny sfo InvosfIng In knowIodgo-InfonsIvo cnnbIIIfIos nnd
rosourcos. On fho ofhor hnnd, mnnngIng InnovnfIon fhrough n nofwork of
sourcIng nIIInncos mny onhnnco n fIrm`s onfroronourInI cnncIfy, nnd
mny bo vIowod ns n vInbIo nfh fo dovoIo orgnnIznfIonnI nmbIdoxforIfy
(O`!oIIIy III & Tushmnn, 2004), or fho cnnbIIIfy of oornfIng fo
sImuIfnnoousIy nccomIIsh oxIornfIon nnd oxIoIfnfIon (Mnrch, l99l).
Thoroforo, for n gIvon comnny, fho choIco of fho mosf nrorInfo
orgnnIznfIonnI form shouId fnko Info consIdornfIon sImuIfnnoousIy bofh
fho InnovnfIon ofonfInI ns woII ns orformnnco mnxImIznfIon.

Majors and Independents in the Music Industry
Infor-orgnnIznfIonnI roInfIonshIs nmong fIrms wIfh dIfforonf
orgnnIznfIonnI forms nnd sfrucfuros nro n fundnmonfnI fonfuro of
comofIfIvo dynnmIcs In modIn nnd cuIfurnI soffIngs. In nrfIcuInr, fho
musIc Indusfry Is domInnfod by four mnjor Inyors: SonyIMC, Wnrnor,
IMI, nnd !nIvorsnI. Thoso nro nII muIfInnfIonnI comnnIos fhnf,
fogofhor, confroI nroxImnfoIy 80 of worIdwIdo furnovor (Cnndor &
!IoIo, 2002). umorIcnIIy, fhough, fho mnrkof Is domInnfod by n vnrIofy
of smnIIor orgnnIznfIons fhnf socInIIzo In confonf orIgInnfIon (Joffcuff &
Irnff, 2002). Thoso fIrms nro gonornIIy roforrod fo ns Indoondonfs or
IndIos. ThoIr sIzo rnngos from fhnf of mIcro-busInossos, run In n
crnffsmnnshI fnshIon, fo fhnf of modIum orgnnIznfIons oornfIng ncross
dIfforonf counfrIos nnd gonros. Moroovor, fho numbor of IndIos hns
consfnnfIy grown ovor fho yonrs, ns roducIng nn nIbum Is n roInfIvoIy
smnII-scnIo rocoss whIch mny roquIro n IImIfod fInnncInI budgof
(HosmondhnIgh, 2002).
Mnjors nro IongsfnndIng Indusfry Incumbonfs fhnf hnvo survIvod
wnvos of oconomIc nnd fochnoIogIcnI chnngo ovor sovornI docndos. Ior
Insfnnco, !nIvorsnI MusIc wns foundod In l924, IMI In l93l, Wnrnor
MusIc In l958, nnd IMC (now wIfh Sony) In l98?. Thoso comnnIos nro
Journal of Media Business Studies 47

fho rosuIf of n rogrossIvo sorIos of morgors nnd ncquIsIfIons. Ior
Insfnnco, IMI MusIc wns born ns n rosuIf of fho morgor bofwoon fho !K
CoIumbIn Crnmohono Comnny nnd fho Crnmohono Comnny, whIIo
SonyIMC rosuIfod from fho morgor of Sony MusIc nnd fho IorfoIsmnnn
MusIc Crou. In fho Insf docndo, howovor, morgors nnd ncquIsIfIons hnvo
rogrossIvoIy bocomo n moro dIffIcuIf growfh ofIon for Incumbonfs: on
fho ono hnnd, hIgh bnrrIors fo onfry In fho form of IncronsIng
conconfrnfIon In dIsfrIbufIon hnvo mndo If moro dIffIcuIf for IndIos fo
ronch vIsIbIIIfy nnd fhoroforo fo bocomo nn nonIIng ncquIsIfIon fnrgof
for mnjors. On fho ofhor hnnd, doforIornfIng mnrkof condIfIons hnmorod
fho dovoIomonf of now mnjors nnd mndo If moro unIIkoIy for mnjors fo
nIIocnfo sIgnIfIcnnf budgofs for ncquIsIfIon ncfIvIfIos.
Tho Indoondonf soffIng Is chnrncforIzod by furbuIonf fronds In bofh
bIrfh nnd morfnIIfy rnfos, fho formor boIng duo fo fho roInfIvoIy smnII-
scnIo rocoss of rocordIng nn nIbum, fho Inffor fo fho hIgh fnIIuro rnfo of
now roIonsos (owd, 2004). TrndIfIonnIIy, IndIos owo fhoIr comofIfIvo
ndvnnfngo fo fhoIr suorIor nbIIIfy fo dIscovor now mnrkof sogmonfs, In
fho form of now gonros nnd nrfIsfs. VIsIbIIIfy nnd nccoss fo n vnrIofy of
dIsfrIbufIon chnnnoIs Is fho mnjor bnrrIor fo growfh nnd fo koo
succossfuI nrfIsfs undor confrncf. Onco IndIos rovo succossfuI In fhoIr
scoufIng of now nrfIsfs nnd gonros nnd ronch n roInfIvo sIzo, fhoy fnco
comofIfIon wIfh ofhor Incumbonfs, IncIudIng mnjors, ns woII ns
nowcomors romofIng now nrfIsfs nnd gonros.
In fho nsf l5 yonrs, fho dIffusIon of dIgIfnI fochnoIogIos hns
doformInod n sfrucfurnI chnngo In fho Indusfry fhnf, for fho fIrsf fImo In
fhoIr hIsfory, mnjors hnvo hnd dIffIcuIfIos fo coo wIfh. ow dIsfrIbufIon
chnnnoIs nnd now consumfIon modos of musIcnI confonf hnvo
doformInod n mnssIvo orosIon of mnjors frndIfIonnI sourcos of comofIfIvo
ndvnnfngo, roInfod fo fho nbIIIfy fo confroI fho fo soIIIng fIfIos ncross
gonros. IndIos woro gonornIIy fnsfor In undorsfnndIng fho ofonfInI
nssocInfod fo mnnngIng nn nrfIsf ncross sovornI chnnnoIs nnd woro
fhoroforo nbIo fo cIrcumvonf mnjors In fhoIr fIghf confroI of fho fo
osIfIons In snIos chnrfs nnd of fho frndIfIonnI dIsfrIbufIon nnd
romofIon chnnnoIs. Af fho snmo fImo, comofIfIon from now forms of
consumfIon, fogofhor wIfh fho frngmonfnfIon of dIsfrIbufIon nnd
romofIon sfrucfuros mndo If nocossnry fo oxIoro now wnys fo mnnngo
InnovnfIon on n confInuous bnsIs. As ncquIsIfIons nro no Iongor fho mosf
fonsIbIo growfh sfrnfogy from fho mnjor`s oInf of vIow nnd ns growfh Is
sfrucfurnIIy nn Issuo for IndIos, Infor-fIrm nIIInncos sfnrfod fo dovoIo In
fho form of nrfnorshIs bofwoon mnjors nnd n growIng numbor of IndIos.
Tho nnfuro of fho roInfIonshI bofwoon mnjors nnd IndIos Is nf fho
confor of n dobnfo In fho IIfornfuro. Somo nufhors nrguo fhnf fho
roInfIonshI bofwoon mnjors nnd IndIos romnIns InhoronfIy confIIcfIng
nnd chnrncforIzod by n nonf fhom nnd us orsocfIvo (Cnndor & !IoIo,
2002: 25l). Mnjors nro rognrdod ns nofworkIng orgnnIznfIons oornfIng
In subconfrncfIng modo, In whIch n roInfIvoIy smnII coro grou of ncfors
sof sfrnfogIc dIrocfIons nnd susfnIn fho nofwork ovor fImo (Sfnrkoy,
48 Dubini and ProveraOrganization Form in the Music Industry

Inrnnff & Tomosf, 2000: 299) by brIngIng In orIhornI orgnnIznfIons
on n fnsk-by-fnsk bnsIs. Mnjors nro crIfIcIzod for n IImIfod commIfmonf fo
dIscovorIng now fnIonf, ossonfInIIy roIyIng on n wnIf-nnd-soo sfrnfogy
(Inrrow & owby, l994: ?0). AccordIng fo fhIs vIow, IndIos fnko on fho
rIsk of dIscovorIng now fnIonf. In cnso fhoIr nffomfs rovo fo bo
succossfuI, mnjors sfo In fo nogofInfo fho frnnsfor of fho nrfIsf wIfhIn
fhoIr rnnks.
Ofhor nufhors nrguo fhnf fho roInfIonshI bofwoon mnjors nnd
Indoondonfs Is rofoundIy cooornfIvo, rosuIfIng In n form of symbIofIc
mufunIIsm (Iurnoff, l999; l04), or co-ofnfIon` (HosmondhnIgh, 2002).
AccordIng fo fhIs vIow, mnjors nro nIdod by fhousnnds of smnIIor
Indoondonf comnnIos fhnf sfrIvo fo roduco InnovnfIvo ncfs on fho
scono. Iy oufsourcIng nrf of fho rIsk nssocInfod wIfh InnovnfIon, mnjors
roncf moro fIoxIbIy fo chnngos In fnshIons. In furn, IndIos nro grnnfod fho
bnckIng of n sound fInnncInI nrfnor, nnd cnn conconfrnfo on fho nrfIsfIc
nsocfs of rosonrchIng nnd dovoIoIng novoI ncfs. Tho Issuo of
onfroronourshI In fho musIc Indusfry hns boon undor-rosonrchod
wIfhIn orgnnIznfIon nnd mnnngorInI sfudIos, whIch hnvo frndIfIonnIIy
fnIIod fo InvosfIgnfo nfforns of roducfIon nnd consumfIon In modIn
IndusfrIos (!nmoI of nI., 2000; Joffcuff & Irnff, 2002). In our cnso,
onfroronourshI cnn bo rognrdod ns fho nbIIIfy fo brIng now nrfIsfs fo
commorcInI succoss, ns grnnfod by fho onfry In musIc chnrfs. In
nrfIcuInr, our rosonrch nIms nf InvosfIgnfIng fho oxfonf fo whIch now
nrfIsfs ronch commorcInI succoss In musIc chnrfs, ns woII ns fho oxfonf fo
whIch nIIInncos bofwoon gonornIIsf nnd socInIIsf orgnnIznfIons mny
offocfIvoIy frnnsfor rosourcos, skIIIs nnd knowIodgo fo mufunIIy Imrovo
fhoIr roducfs nnd comofIfIvo osIfIons (!ovIfns, HIff & ncIn, l99?;
MozIns & MozIns, 2000).
Tho Issuo Is roIovnnf In undorsfnndIng how fIrms nchIovo Indusfry
dovoIomonf nnd ronf nrorInfIon rocossos. As cuIfurnI IndusfrIos
donI wIfh fho IdonfIfIcnfIon of sIgns nnd symboIs fhnf shno nnd
InfIuonco coIIocfIvo sonso-mnkIng (HosmondhnIgh, 2002), fho consfnnf
IgnIfIon of now sIgns Is nn InfrInsIc fonfuro of fho Indusfry. Thoroforo, If
Is Imorfnnf fhnf fho comofIfIvo dynnmIcs wIfhIn fho Indusfry do nof
hIndor fho InnovnfIon rocoss. Ior IndIvIdunI nrfIsfs, fho nssossmonf of
fho mosf offocfIvo rocoss IondIng fo vIsIbIIIfy nnd mnrkof succoss Is
crucInI for fhoIr nbIIIfy fo IIvo on fhoIr fnIonf (OrdnnInI, 2006).
onofhoIoss, fho dIscovory nnd Inunch of now nrfIsfs nnd fIfIos Is n
nocossnry buf nof n suffIcIonf condIfIon fo fuoI fho InnovnfIon rocoss.
CIvon fho ovorsuIy fhnf chnrncforIzos mosf modIn IndusfrIos
(Andorson, 2006), If Is crucInI fhnf fIfIos gnIn vIsIbIIIfy In fho mnrkof,
gnfhorIng suffIcIonf roforoncos fo furn fhom Info susfnInnbIo vonfuros
rownrdIng nufhors, ubIIshors nnd dIsfrIbufors of fhoIr Invosfmonfs.
Chnrfs nnd IIsfs of fo soIIIng fIfIos nro bofh n cnuso nnd nn offocf of
commorcInI orformnnco; onco n fIfIo onfors fho chnrfs, If bocomos vory
vIsIbIo nnd, fhoroforo, nffrncfs now IIsfonors, oonIng u n vnrIofy of
Journal of Media Business Studies 49

sfrnfogIc ofIons for fho nufhor nnd ubIIshor fo oxIoIf nnd Incronso
vIsIbIIIfy (Annnd & Ioforson, 2000).
Moroovor, fho InforIny bofwoon now roducf InfroducfIon nnd
vIsIbIIIfy occurs wIfhIn n rnngo of gonros. Conro Is ono of fho mosf
common cInssIfIcnfIon crIforIn for cuIfurnI nnd modIn roducfs, ns If Is n
oworfuI sogmonfnfIon crIforIon whIch chnrncforIzos onch fIfIo nnd
mnkos If rocognIznbIo nnd dIfforonfInfod from ofhor cuIfurnI roducfs
(Ioforson, l99?; ogus, l999). Af fho snmo fImo, n unIvocnI gonro
dofInIfIon for n socIfIc fIfIo Is oxfromoIy comIox, ns fochnoIogIcnI
InnovnfIon nnd fnsfo ovoIufIon confrIbufo fo bIur boundnrIos nmong
gonros, fhus mnkIng hybrIdIznfIon n common InnovnfIon nfforn In
modIn nnd cuIfurnI soffIngs (AIfmnn, l98?; Wnformnn, 2005). Ono
consoquonco of Indusfry dynnmIcs Is fhnf now gonros or subgonros such
ns nIfornnfIvo musIc, unk, or rn hnvo oIfhor omorgod or consoIIdnfod,
ns rovIvnIs on fho ono hnnd nnd fnsfos ovoIufIon on fho ofhor consfnnfIy
Imncf fho ovoIufIon of roforoncos. Somo gonros nddross fho noods nnd
roforoncos of much moro soIocf grou of usors, whIIo ofhors nro ouInr
ncross wIdo sogmonfs of ouInfIon, ovon nf fho gIobnI IovoI. ThIs ImIIos
n mnrkod socInIIznfIon of nrfIsfs nnd InboIs Is roquIrod, IondIng fo fho
consoIIdnfIon of nofworks of roInfIons domInnfod ovor fImo by fho snmo
ncfors (MncIndyon & CnnnoIIn 2004; !zzI & SIro, 2005).
In fho nsf fow yonrs, fho nmounf of fIfIos nvnIInbIo fo fho ubIIc hns
Incronsod drnmnfIcnIIy. IIrsf, n sorIos of InnovnfIons nssocInfod wIfh
confonf roducfIon hnvo Iod fo nn Incronso of fho nIrondy sIgnIfIcnnf
nmounf of fIfIos nvnIInbIo In fho mnrkof. AccordIng fo Andorson, In
musIc, fho numbor of now nIbums roIonsod grow n honomonnI 36 In
2005, fo 60 000 fIfIos In fho !S, u from 44 000 In 2004 (2006; 54).
Socond, fho numbor of IndIos hns consfnnfIy grown ovor fho yonrs, ns
roducIng nn nIbum Is n roInfIvoIy smnII-scnIo rocoss whIch mny roquIro
n IImIfod fInnncInI budgof (HosmondhnIgh, 2002). ThIrd, fho dIffusIon of
dIgIfnI fochnoIogIos hns doformInod fho growfh of now dIsfrIbufIon
chnnnoIs, fho oconomIcs of whIch nro rndIcnIIy dIfforonf from fhnf of fhoIr
brIcks-nnd-morfnr counfornrfs (Ivnns & Wursfor, 2000, Andorson,
2006). As nII fhoso hysIcnI nnd vIrfunI dIsfrIbufors fhrIvo fo osIfIon
fhomsoIvos In fho comofIfIvo nronn, fhoy nII roquIro confonf fo susfnIn
fhoIr vnIuo roosIfIon. Af fho snmo fImo, ns usors` domogrnhIcs vnry
ncross chnnnoIs (nnd nof jusf ncross gonros), bofh mnjors nnd IndIos nro
fncod wIfh nn Incronso In fhoIr scoo of ncfIvIfy. As nII Inyors nood fo
mnxImIzo vIsIbIIIfy for fhoIr fIfIos, now roducf roIonso musf fnko Info
nccounf fho InforIny bofwoon chnnnoIs In fho journoy fo fho mosf vIsIbIo
osIfIons. As sIgns nnd symboIs ovoIvo, now nufhors como fo fho scono,
fuoIIIng fho IndusfrIos wIfh InnovnfIvo confonf. Tho succoss of
coIInbornfIvo wobsIfos such ns Youfubo.com fosfIfIos fo fho roIovnnco nnd
voIumo of now confonf roducfIon. OnIy n mInor orfIon of such n
roducfIon Is soIocfod by ubIIshors nnd Is roosod fo fho ubIIc.
CuIfurnI fIrms nnd fho gnfokooIng sfrucfuros nssocInfod wIfh fhom bonr
fho onfroronourInI rIsk fo frnnsform cronfIvo nrfIfncfs Info roducfs nnd
50 Dubini and ProveraOrganization Form in the Music Industry

rooso fhom fo fho mnrkof. As onIy n fIny frncfIon of fhoso fIfIos
bocomos so vIsIbIo fo bocomo hIfs, fho Iong-form survIvnI of fIrms honvIIy
doonds on fhoso soIocfIon cnnbIIIfIos, sInco nrfIsfIc cronfIvIfy Is n
rosourco fhnf fIrms cnn noIfhor confroI nor cronfo, buf cnn onIy soIocf nnd
drIvo If fo fho mnrkof (WIjnborg, l995; !nmoI of nI., 2000).

In Search of Success: Coping with Innovation
Ono of fho offocfs of fho ndvonf of dIgIfnI fochnoIogIos hns boon fho
Incronso of fho ovorsuIy of roducfIon. MnnngIng fhIs mnssIvo nmounf
of fIfIos Is n hugo fnsk for nII ncfors InvoIvod (from nrfIsfs fo roducors,
rofnIIors, nnd cusfomors) nnd n mnjor sourco of wnsfo. Tho vnsf mnjorIfy
of nIbums fhnf ronch fho mnrkof doos nof rovIdo ndoqunfo rofurn on fho
Invosfmonf fo oIfhor fho nrfIsf or hIs/hor InboI. OnIy l0-l5 of now
nIbums mnnngo fo bronk ovon (Iurnoff, l999), nnd for fhoso who mnko
If, fhoro Is n dIsroorfIonnfo orconfngo of rosourcos nIIocnfod fo fow
oxfromoIy vIsIbIo suorsfnrs (!oson, l98l; AdIor, l984; off, of nI., 2005),
who nbsorb n vnsf mnjorIfy of modIn ns woII ns nudIonco nffonfIon (IIno
& CIImoro, l999). If Is fhoroforo nof surrIsIng fhnf whIIo fho omorgonco
of n vnrIofy of dIsfrIbufIon chnnnoIs for dIgIfnI confonf, nnd fho onso fo
roduco, IognIIy modIfy nnd dIffuso usor-gonornfod confonf hnvo mndo If
oconomIcnIIy vInbIo fo ubIIsh confonf ovon for mInufo nnd scnfforod
nudIoncos, fho fIghf for vIsIbIIIfy nmong fow nIbums nnd roducors
mnkos fho dIscronncy bofwoon fo soIIIng fIfIos nnd fho ovornII
roducfIon wIdor nnd wIdor. As now fochnoIogIos hnvo cnusod n
bIossomIng of now roducfs nnd confonf-bnsod soIufIons nnd sorvIcos
(somo of whIch hnvo buIIf ImrossIvo nudIoncos In oxfromoIy IImIfod fImo
snns nnd gnfhorod nffonfIon of fho ubIIc oInIon), fho dIscronncy
bofwoon fho busInoss IogIc bohInd hIghIy-vIsIbIo mnss mnrkof fIfIos, on
fho ono hnnd, nnd hyor-socInIIzod roducfs, on fho ofhor hnnd, Is
sfrongor nnd moro ovIdonf fhnn ovor.
Thoroforo, vIsIbIIIfy Is n koy doformInnnf In dofInIng busInoss modoIs
In cuIfurnI nnd modIn IndusfrIos. As onIy n vory IImIfod orconfngo of
fIfIos sfnnd ouf ns n bIockbusfors, n sonrnfo comofIfIvo snco Is dofInod
by fhoso fIfIos fhnf do hnvo n chnnco boforohnnd fo mnko If fo fho fo nnd
fhoso fhnf nro nbIo fo gonornfo n snow bnII offocf In n IImIfod fImo frnmo,
so fhnf fhoy boIong fo fho socInIIy consfrucfod InformnfIon rogImos fhnf
comIIo roorfs nbouf 'fho mnrkof`. (...) In comofIfIvo fIoIds, mnrkof
InformnfIon rogImos rovIdo n focus of nffonfIon nround whIch grous of
orgnnIznfIons consoIIdnfo (...). In comofIfIvo mnrkof fIoIds, orformnnco-
roInfod InformnfIon Is fho rnw mnforInI from whIch orgnnIznfIonnI ncfors
mnko sonso of fhoIr onvIronmonf. Tho oufcomo of fhIs rocoss Is nn
onncfmonf of n 'mnrkof.` Mnrkof InformnfIon rogImos nro fho modIum
fhrough whIch roducors obsorvo onch ofhor nnd mnrkof nrfIcInnfs
mnko sonso of fhoIr worId (Annnd & Ioforson, 2000: 2?2).
!Ifornfuro nnnIysIs, ns woII ns common wIsdom wouId fhoroforo
suggosf fhnf mnjor nnd IndIos nro orgnnIznfIonnI forms fhnf wouId bo
Journal of Media Business Studies 51

nbIo fo fnko bonofIf onIy In nrf of fho comofIfIvo nnfuro of fho musIc
Indusfry: Mnjors soom fo bo moro ndoqunfo In oxIoIfIng InnovnfIon,
whIIo IndIos wouId bo oxocfod fo bo moro InnovnfIvo. As succossfuIIy
comofIng In fho Indusfry roquIros bofh InnovnfIon nnd vIsIbIIIfy fo bo
ronchod sImuIfnnoousIy, mnjor-IndIo nrfnorshIs shouId bo fho mosf
succossfuI orgnnIznfIonnI form. Wo fhoroforo nIm nf fosfIng fho foIIowIng
hyofhosos:

H1. Tho ndofIon of fho nrfnorshI form wIII osIfIvoIy InfIuonco fho
chnrf orformnnco of fho comnny;

H2. Tho roInfIonshI bofwoon fho nrfnorshI form nnd chnrf
orformnnco wIII bo sfrongor whon such nrfnorshIs nro focusod on
oxIornfIon, fhnf Is fo sny on hIghIy InnovnfIvo rojocfs.

Thoroforo, fho focus of fhIs nor Is on fho roIo of orgnnIznfIonnI form
(IndIo, mnjor, nrfnorshI nIIInnco) In InfIuoncIng fwo sfrnfogIc
dImonsIons of onfroronourInI ncfIvIfy: chnrf succoss nnd InnovnfIon.
WhIIo fho fIrsf concof cnfuros fho nbIIIfy of gonornIIsf nnd socInIIsf
orgnnIznfIons fo gnIn vIsIbIIIfy nnd, uIfImnfoIy, commorcInI succoss, fho
Inffor dImonsIon Is nn IndIcnfor on fhoIr fufuro nbIIIfy fo susfnIn or
Imrovo fhoIr curronf mnrkof osIfIon.


METHODS
Our rosonrch Is focusod on fho !S musIc Indusfry, whIch Is fho Inrgosf
mnrkof worIdwIdo In forms of bofh furnovor nnd InnovnfIon rnfos (VogoI,
2004). Tho rosonrch roIIos on BillIoorJ chnrfs, whIch hnvo boon
roonfodIy consIdorod ns n roIInbIo sourco fo nssoss comofIfIvo dynnmIcs
In fho musIc Indusfry (soo Annnd & Ioforson, 2000; owd, 2004). Tho
dnfnbnso confnIns InformnfIon on wookIy !S nIbum chnrfs from l99l fo
2005. Tho dnfnbnso rosonfs wookIy InformnfIon on fho To 200 nIbums
onforIng fho chnrfs, fhoroby offorIng n rorosonfnfIvo snmIo of fho
Indusfry`s dynnmIcs, nIso mIfIgnfIng ofonfInI bInsos of snmIIng on fho
doondonf vnrInbIo. Wo roIIod on fwo rosonrch nssIsfnnfs fo Infogrnfo fho
dnfnbnso by cronfIng n vnrInbIo nssossIng whofhor onch nIbum Is n now
nIbum by n now nrfIsf, n now nIbum by nn osfnbIIshod nrfIsf, or n
cnfnIoguo nIbum (o.g. gronfosf hIfs, IIvo, roIssuo). ThIs nIIowod us fo
dIscrImInnfo nmong dIfforonf dogroos of InnovnfIon. In nddIfIon fo fhnf,
onch orgnnIznfIon nIbum hns boon IdonfIfIod ns boIongIng fo n mnjor, nn
IndIo, or n nrfnorshI. IInnIIy n gonro vnrInbIo hns nIso boon nddod fo
ns n confroI vnrInbIo. A numbor of socondnry sourcos woro omIoyod fo
nssoss such vnrInbIos. In nrfIcuInr, wo roIIod on oIocfronIc sourcos nnd
dnfnbnsos (Hoovor, IncfIvn) fo frnck fho sfory of onch nIbum nnd
orgnnIznfIon vIn Indusfry ubIIcnfIons nnd wobsIfos. Tho rocoss fook sIx
52 Dubini and ProveraOrganization Form in the Music Industry

monfhs fo comIofo, nnd wns cnrrIod ouf In nccordnnco fo rovIous
scIonfIfIc sfudIos (for n dIscussIon, soo owd, 2004).

Measures
In ordor fo oornfIonnIIzo our consfrucfs, wo omIoyod fho foIIowIng
monsuros:

OvgunIzutIonu! Iovm Wo omIoyod fhroo cnfogorIos fo oornfIonnIIzo
orgnnIznfIonnI form ns oIfhor mnjor, IndIo, or nrfnorshI. A nrfnorshI
occurs whon n mnjor nnd nn IndIo co-roduco nn nIbum, roIonsIng If vIn
co-brnndIng. CnfogorIos nro oornfIonnIIzod wIfh fwo dummy vnrInbIos
roforrIng fo IndIo nnd mnjor forms. Tho dummy for fho nrfnorshI
vnrInbIo Is rodundnnf nnd, fhus, nof IncIudod, nIboIf If Is fho roforonco
cnfogory for fho dnfn nnnIysIs nnd InforrofnfIons of rosuIfs. IoIIowIng
owd (2004), fho nssossmonf occurrod vIn n frInnguInfIon of dIfforonf
Indusfry-roInfod sourcos, IncIudIng musIc mngnzInos (o.g. BillIoorJ,
Iolling S/one, ofc.), musIc oncycIoodIns nnd books, busInoss ross
(Iinonciol Tinee, Tle Woll S/ree/ Journol, ofc.), nnd comnny wobsIfos.
ThIs rocoss nIIowod us fo frnco morgors nnd ncquIsIfIons whIch mny
hnvo occurrod nIong fho orIod undor obsorvnfIon nnd, fhus, fo koo
frnck of ofonfInI chnngos In orgnnIznfIonnI form (o.g. nn IndIo boIng
ncquIrod by n mnjor).

CLuvt success Chnrf succoss wns monsurod by buIIdIng n woIghfod
monsuro fo cnfuro fwo koy dImonsIons of succoss. Tho monsuro woIghfs
durnfIon (numbor of wooks on chnrf) nnd nbsoIufo succoss (onk
osIfIon), fhoroby morgIng oIomonfs of IongovIfy wIfh vIsIbIIIfy. !Iko
ofhor modIn soffIngs, Indood, fho musIc Indusfry Is n comofIfIvo chnrf
busInoss (Joffcuff & Irnff, 2002), In whIch comofIfIvo ndvnnfngo
doonds on fho voIumo nnd IovoI of chnrf succoss ovor n IImIfod fImo
snn. ConsoquonfIy, chnrf durnfIon nnd osIfIon nro sIgnIfIcnnf
doformInnnfs of commorcInI succoss (OrdnnInI, 2006).

Puttevns oI InnovutIon Wo hnvo oInfod ouf fwo nfforns of Inno-
vnfIon fhnf nro roIovnnf fo our soffIng, oxIoIfnfIon nnd oxIornfIon.
IoIIowIng owd (2004), oxIoIfnfIon nnd oxIornfIon woro oornfIon-
nIIzod ns cnfogorIcnI ordorod vnrInbIos, by frInnguInfIng dnfn roInfIvo fo
bofh fho nrfIsf nnd fho nIbum (soo owd, 2004). IxIoIfnfIon wns
oornfIonnIIzod by nssIgnIng fho vnIuo of 0 fo roIssuos of nIbums by
osfnbIIshod nrfIsfs (o.g. gronfosf hIfs, comIInfIons, roIssuos). IxIornfIon
wns oornfIonnIIzod by nssIgnIng fho vnIuo of l fo now nIbums by now
nrfIsfs. A osIfIvo sIoo cooffIcIonf of nn oxInnnfory vnrInbIo ImIIod n
osIfIvo offocf on fho novoIfy of n roIonso.

Genve Wo omIoyod cnfogory vnrInbIos fo monsuro gonro fyoIogy. In
ordor fo nssoss whIch gonro fo nssIgn n nrfIcuInr nIbum, wo roIIod on fho
Journal of Media Business Studies 53

cInssIfIcnfIon rovIdod by ITunos musIc orfnI, whIch cInssIfIos ovory
song nnd nIbum on snIo. Wo choso ITunos ns If Is fho mosf comrohonsIvo
nvnIInbIo rosourco for fIndIng, urchnsIng, nnd cInssIfyIng musIc. OvornII,
wo IdonfIfIod 6 musIc gonros, IncIudIng o, !&I, counfry, dnnco,
nIfornnfIvo, nnd rock.
InIfInIIy, wo run n doscrIfIvo nnnIysIs of roconf mnrkof fronds In
ordor fo oxIoro how, In roconf yonrs, rocord comnnIos hnvo chnngod
InnovnfIon sfrnfogIos foIIowIng fho sfoo docIIno In Indusfry snIos.
!osuIfs show fho omorgonco of fho nrfnorshI form ns n sfrnfogIc ofIon
fo mnrkof hIghIy InnovnfIvo rojocfs. Wo fhon run oxIornfory rogrossIon
nnnIysos (O!S) fo InvosfIgnfo fho offocfs of form on chnrf orformnnco, In
ordor fo nssoss fho ncfunI oufcomo of such chnngos In sfrnfogIc focus.

RESULTS
Descriptive Results
TnbIo l shows fho ovoIufIon In fho fImo InforvnI consIdorod of fho
dynnmIcs of fho fo soIIIng IIsf. Tho InfonsIfy of comofIfIon hns
Incronsod In fho fImo frnmo consIdorod. IIrsf, fho furnovor of nrfIsfs nnd
fIfIos nf fho fo hns Incronsod. ThIs monns fhnf moro nrfIsfs gof fo bo
vory vIsIbIo, buf fho nvorngo fImo on fo of fho IIsf hns rogrossIvoIy
docronsod. Irom fho comnny oInf of vIow, fhIs monns fhnf mnnngIng
InnovnfIon hns bocomo moro crucInI nnd moro rIsky ovor fImo, ns fho
wIndow of ronf oxIoIfnfIon hns rogrossIvoIy roducod nnd fho cosf of
ronchIng vIsIbIIIfy hns Incronsod. Socond, nrfIsfs who mnko If fo fho fo
osIfIons of fho chnrfs consoIIdnfo fhoIr osIfIon by IssuIng moro fIfIos In
fho snmo yonr. Iy doIng so, fhoy Iovorngo on fho vIsIbIIIfy obfnInod wIfh
ono hIf fo ush nnofhor ono. ThIs honomonon hns Incronsod ovor fho
fImo frnmo consIdorod nnd somowhnf bnInncos fho hIghor chnncos fo
mnko If fo fho fo oonod u by n hIghor fIfIos furnovor. AgnIn, fhIs Is n
sIgn of foughor comofIfIon wIfhIn fho Indusfry, ns nrfIsfs fhnf mnko If fo
fho fo wIfh muIfIIo fIfIos wIfh n shorfor IIfo snn nro nof onIy IIkoIy fo
roquIro moro offorfs fo ronch fho fo wIfh n shorfor fImo fo rocovor from
fho Invosfmonf, buf nIso fhoy nro IIkoIy fo Incronso fhoIr bnrgnInIng
owor ovor fho rocord comnny.
TnbIo 2 nnd TnbIo 3 rosonf doscrIfIvo rosuIfs roInfIvo fo chnrf
succoss nnd InnovnfIon, ns cIusforod by orgnnIznfIonnI form.
umorIcnIIy, mnjors occuy n domInnnf osIfIon In forms of ovornII
nIbums In fho chnrfs (63), wIfh IndIos (29.9) nnd nrfnorshIs (?.l)
foIIowIng. Howovor, mnjors roduco onIy 54.2 of nIbums cInssIfIod ns
hIghIy InnovnfIvo, whIIo IndIos roduco 36.? nnd nrfnorshIs 9.l.
OvornII, mosf nIbums fnII Info n modIum InnovnfIon cnfogory
(45.8), whIch onfnIIs fho roIonso of n now nIbum by nn osfnbIIshod ncf.
TnbIo l: Chnrf dynnmIcs In fho musIc Indusfry



5
4

D
u
b
i
n
i

a
n
d

P
r
o
v
e
r
a

O
r
g
a
n
i
z
a
t
i
o
n

F
o
r
m

i
n

t
h
e

M
u
s
i
c

I
n
d
u
s
t
r
y

T
a
b
l
e

1
.

C
h
a
r
t

D
y
n
a
m
i
c
s

i
n

t
h
e

M
u
s
i
c

I
n
d
u
s
t
r
y



1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
N.artists top position 14 12 17 22 19 21 26 14 23 19 25 23 33 28 32
N.artists positions 1-3 28 26 30 35 30 40 45 48 47 44 51 56 67 65 76
N.artists top ten 49 61 71 83 65 79 79 100 94 103 126 121 131 125 159
N.artists top 100 299 278 309 325 33 349 368 377 384 403 424 448 478 498 538
N.titles top 10 56 71 79 91 80 89 98 129 109 114 136 132 144 134 169
N. artists top 10 with > 1 album 4 5 5 4 4 2 5 8 7 6 6 5 4 7 7
N.titles top 100 367 360 405 421 452 464 484 509 545 525 567 595 622 627 675
N. artists top 100 with > 1 album 36 48 52 50 52 40 46 39 52 41 48 56 46 55 60
Journal of Media Business Studies 55


Table 2. Chart Success and Innovation by Organizational Form

Mnjor InrfnorshI IndIo TofnI
AIbum In
Chnrfs
(numbor; )
68ll (63) ?68 (?.l) 322l (29.9) l0800
HIgh
InnovnfIon
(ow nIbum by
now nrfIsf)
l2?0 (OvornII
= 54.2)
2l2
(OvornII = 9.l)
86l (OvornII
= 36.?)
2343
(2l.? of fofnI
nIbums)
ModIum
InnovnfIon
(ow nIbum by
osfnbIIshod
nrfIsf)
3234 (OvornII
= 65.3)
354 (OvornII =
?.2)
l363 (OvornII
= 2?.5)
495l (45.8 of
fofnI nIbums)
!ow
InnovnfIon
(!oIssuo)
230? (OvornII
= 65.l)
202 (OvornII =
5.8)
99? (OvornII
= 29.l)
3506 (32,5 of
fofnI nIbums)

Table 3. Descriptive Results by Organizational form: innovation

Mnjor InrfnorshI IndIo
HIgh InnovnfIon
(ow nIbum by now
nrfIsf)
l8.6 2?.6 26.?
ModIum InnovnfIon
(ow nIbum by
osfnbIIshod nrfIsf)
4?.5 46.l 42.3
!ow InnovnfIon
(!oIssuo)
33.9 26.3 3l.0
TofnI l00 l00 l00
ofo: AOVA I-fosf scoro rosuIf, 25.98; Irob. > I = 0.00

TnbIo 3 nrfIfIons InnovnfIon IovoIs wIfhIn orgnnIznfIonnI forms,
showIng fhnf, In roInfIvo forms, mnjors onIy nIIocnfo l8.6 of fhoIr
rosourcos fo fho roducfIon of hIgh InnovnfIon nIbums. On fho confrnry,
nrfnorshIs dovofo 2?.6 nnd IndIos 26.? fo InunchIng now nIbums by
now nrfIsfs. In ordor fo fosf whofhor or nof fho dIfforonco In fho
nIIocnfIon of rosourcos ncross fho fyos of InnovnfIon wns ncfunIIy duo fo
fho dIfforonco In fho orgnnIznfIonnI form, wo conducf nn AOVA fosf.
Tho rosuIfs show fhnf fhoro nro sfnfIsfIcnIIy sIgnIfIcnnf dIfforoncos
bofwoon forms nnd fho fyo of rojocfs In whIch fhoy ongngo.
IIguro l shows fho ovoIufIon of roInfIvo mnrkof shnros bofwoon l992
nnd 2005. Tho dnfn hIghIIghf n sIgnIfIcnnf roducfIon In fho roInfIvo
numbor of nIbums soId my mnjors, goIng from 82 In l992 fo 49 In
2005. ConvorsoIy, fho orconfngo of nIbum roducod by IndIos Incronsod
from l6 fo 38. IInnIIy, fho numbor of nIbums soId vIn nrfnorshI
Incronsod from 2 In l99l fo l2 2005.

56 Dubini and ProveraOrganization Form in the Music Industry

Figure 1: Chart Albums by the 3 Organizational Forms, 1991-2005

Tho Indusfry-wIdo rocossIon fhnf bognn In 2000 ncfunIIy roducod
mnrkof snco for mnjor orgnnIznfIons, fo fho bonofIf of IndIos.
onofhoIoss, mnjor orgnnIznfIons roducod nrf of fhIs gn by roIyIng on
nn IncronsIng numbor or nrfnorshIs wIfh Indoondonf fIrms, In nn
nffomf fo shnro nrf of fho rIsk nssocInfod wIfh now vonfuros.
In fho foIIowIng nrngrnh, wo focus on fho nrfnorshI form fo shod
IIghf on fhIs novoI fyo of vonfuro, whIch hns boon shown fo hnvo
ncquIrod nn IncronsIngIy Imorfnnf roIo wIfhIn nn Indusfry hIsforIcnIIy
chnrncforIzod by n mnjor-IndIo dunIIfy.

Chart success
Wo now furn fo fho roInfIonshI bofwoon orgnnIznfIonnI form nnd chnrf
succoss, confroIIIng for gonro offocfs. Wo omIoyod n hIornrchIcnI
rogrossIon (O!S) wIfh n Iog frnnsformnfIon of our doondonf vnrInbIo,
sInco our dnfn wns mnrkodIy skowod fo fho rIghf. TnbIo 4 rovIdos nn
IIIusfrnfIon of our fIndIngs.
AccordIng fo our fIrsf hyofhosIs, fho nrfnorshI form shouId hnvo
osIfIvoIy InfIuoncod chnrf succoss. Howovor our rosuIfs do nof suorf
fho hyofhosIs, sInco fho offocf of fho nrfnorshI form Is nognfIvo nnd
sIgnIfIcnnf (ModoI l, TnbIo 4). Such roInfIonshI romnIns sfnfIsfIcnIIy
sIgnIfIcnnf nffor confroIIIng for ofonfInI offocfs roInfod wIfh musIc
gonros (ModoI 2, TnbIo 4).
Howovor, our rosuIfs suorf hyofhosIs fwo, whIch rodIcfod fhnf
fho osIfIvo roInfIonshI bofwoon fho nrfnorshI form nnd chnrf
orformnnco wouId hnvo boon sfrongor whon such nrfnorshI woro
focusod on oxIornfIon. Indood, our rosuIfs show fhnf fho offocf of fho
nrfnorshI form on orformnnco bocomos osIfIvo nnd sIgnIfIcnnf, whon
fho nrfnorshI Is nImod nf nn oxIornfIon sfrnfogy (ModoI 3, TnbIo 4).


Journal of Media Business Studies 57

Table 4: Chart Success and the Moderating Role of Exploration and
Exploitation

Mode! 1 Mode! 2 Mode! 3 Mode! 4
!&I -0.284 -0.248 -0.26l -0.26l
!ock 0.65l** 0.5??** 0.5?3 0.5?2
Io 0.355 0.306 0.308 0.304
nnco -0.lll -0.l30 -0.ll5 -0.lll
Counfry 0.468** 0.366 0.358 0.36l
AIfornnfIvo 0.293** 0.225 0.2l? 0.2l9
InrfnorshI -0.9?3** -l.094** -l.l50**
Inrf x IxIornf. 0.680**
Inrf x IxIoIf 0.8?2
!2 0.049 0.0?8 0.084 0.086
Adjusfod !2 0.045 0.0?4 0.0?9 0.0?9
Chnngo !2 0.029 0.006 0.002
I-chnngo ll.3l6 4l. 95?** 8.l44** 2.l56
ofo: ** < 0.05; As fho Indoondonf vnrInbIo Is bInnry If Is nof ossIbIo fo confor If

OvornII, fhoso rosuIfs mIghf bo Inforrofod by consIdorIng fhnf fho
formnI ImIomonfnfIon of n nrfnorshI mny bo cosfIy nnd Ioss offIcIonf
fhnn fho orIgInnI forms (I.o. mnjor or IndIo), sInco If ImIIos sof-u
Invosfmonfs, ns woII ns buIIdIng n now roInfIonshI nnd know-how. ThIs
mIghf oxInIn why fho ndofIon of fho nrfnorshI form doos nof
osIfIvoIy InfIuonco fho chnrf orformnnco of fho now vonfuro nnd, fhus,
why hyofhosIs ono Is nof suorfod. AIong nnofhor IIno of fhoughf, If
couId bo nrguod fhnf fho nvnIInbIIIfy of socInIIzod comIomonfnry nssofs
for mnjors nIIow fhom fo mnxImIzo orformnnco. ThIs suggosfs fhnf
mnnngors focusIng on orformnnco mnxImIznfIon ns fhoIr uIfImnfo gonI
nof undorfnko nIIInncos.
Howovor, whon fho ImIomonfnfIon of fho nrfnorshI Is
subsfnnfInfod by fho conjuncf onncfmonf of nn oxIornfIon sfrnfogy, such
form Is nbIo fo sIgnIfIcnnfIy confrIbufo fo fho chnrf orformnnco of fho
nIbum. On fho ofhor sIdo, fhIs frond Is suorfod by fho fncf fhnf fho
offocf of fho nrfnorshI form, whon usod fo ImIomonf nn oxIoIfnfIon
sfrnfogy, Is nof sIgnIfIcnnf for fho nIbum orformnnco (ModoI 3, TnbIo 4).
In forms of mnnngorInI ImIIcnfIons, somo roscrIfIons mIghf
omorgo whon comnrIng fhIs omIrIcnI fosf nnd fho doscrIfIon of fho
mnjor fronds In fho Indusfry wo rovIdo In IIg. l nnd 2. Indood, fho
Incronsod numbor of nrfnorshIs Is nof onough fo nchIovo susfnInod
comofIfIvo ndvnnfngo durIng n fochnoIogIcnI dIsconfInuIfy. In ordor fo
nIIow fho nrfnorshI form fo oxross fho bonofIfs roInfod fo Ifs fIoxIbIIIfy
nnd knowIodgo frnnsfor cnnbIIIfy, nn oxIornfIvo sfrnfogy of InnovnfIon
shouId bo ImIomonfod wIfhIn If.




58 Dubini and ProveraOrganization Form in the Music Industry


DISCUSSION AND CONCLUSIONS
Tho musIc Indusfry hns wIfnossod In fho Insf l5 yonrs Imorfnnf
sfrucfurnI chnngos fhnf hnvo forcod comnnIos fo Incronso fho rnfo of
now fIfIos InfroducfIon; ns nvorngo ormnnonco In chnrfs hns docronsod,
If hns bocomo crucInI for bofh mnjors nnd IndIos fo bo nbIo fo susfnIn
growfh wIfh n consfnnf fIow of now fIfIos.
Our doscrIfIvo rosuIfs hnvo shown fhnf orgnnIznfIonnI form Is n
roIovnnf vnrInbIo In oxInInIng fho dynnmIcs of chnrf succoss nnd
InnovnfIon In fho musIc Indusfry. In nrfIcuInr, our dnfn show how n now
orgnnIznfIonnI form, fho nrfnorshI, hns omorgod In fho Insf docndo fo
cnfuro sIgnIfIcnnf mnrkof shnro. Tho IongIfudInnI dnfn IIIusfrnfo how
fho numbor of nrfnorshIs Incronsod from l2 In l992 fo l?9 In 2005,
wIfh n l39l Incronso. Our rosuIfs IndIcnfo fhnf fho orgnnIznfIonnI form
(nnmoIy nrfnorshI) doos mnko n dIfforonco In fho InfroducfIon of hIghIy
InnovnfIvo rojocfs.
Thoso rosuIfs confrnsf wIfh fho much dobnfod dunIIfy bofwoon
mnjors nnd IndIos whIch, nf Ionsf In fho nsf, chnrncforIzod comofIfIvo
dynnmIcs In fho musIc Indusfry (soo ogus, l999; Cnndor & !IoIo,
2002; owd, 2004; OrdnnInI, 2006).
ConsoquonfIy, wo soughf fo oxIoro fho roInfIonshI bofwoon
nrfnorshI nnd chnrf succoss, fo nssoss whofhor fhIs omorgIng
orgnnIznfIonnI form couId rodIcf comofIfIvo oufcomos. Our rosuIfs
show fhnf fho nrfnorshI Is n wInnIng comofIfIvo formuIn onIy whon If
Is socIfIcnIIy nImod nf oxIornfIon, by focusIng on fho Inunch of now
nIbums of now nrfIsfs. As nrfnorshIs nro InfrInsIcnIIy rIsky nnd cosfIy
(ns fhoy roquIro fho dovoIomonf of nd hoc roufInos, ofc.), our rosuIfs
IndIcnfo fhnf fhoy shouId bo ursuod In fhoso cnsos In whIch bofh
comnnIos InvoIvod cnn Iovorngo fhoIr roInfIvo sfrongfhs. In ofhor words,
fhIs sooms fo bo n vnIunbIo sfrnfogy whon fho fInnncInI nnd mnrkof
comofonco of mnjors on fho ono hnnd nnd fho fIoxIbIIIfy of IndIos on fho
ofhor nro nocossnry nnd oxIoIfod nf fho snmo fImo.
In gonornI, ovIdonco from fho roIImInnry nnnIysIs shows fhnf
sourcIng nIIInncos do Iny n vIfnI roIo In undorInnIng fho dynnmIcs of
InnovnfIon In fho musIc Indusfry. SIgnIfIcnnf roInfIonshIs oxIsf bofwoon
mnjors nnd IndIos, ns fho nrfnorshI form omorgos ns oxfromoIy
Imorfnnf In IondIng InnovnfIon Info fho chnrfs, nrfIcuInrIy ns fnr ns
oxIornfIon ncfIvIfIos nro InvoIvod. WhIIo mnjors nIono do nof focus on
brIngIng InnovnfIvo ncfs fo commorcInI succoss, IndIos mny fnII fo do so
bocnuso of n Inck of commorcInI rosourcos. Iofh comnnIos sfrIvo fo soIocf
nnd rooso now nrfIsfs nnd fIfIos, buf mnjors nnd IndIos joIn forcos by
IovorngIng on comIomonfnry sfrongfhs vIn nrfnorshIs. Our rosuIfs
confIrm fho nofIon fhnf mnjors nnd IndIos ongngo In n form of symbIofIc
mufunIIsm (Iurnoff, l999) rnfhor fhnn In comofIfIvo oosIfIon
(Joffcuff & Irnff, 2002). Thoso rosuIfs suorf fho Idon fhnf mnjors hoId
confroI of mnrkofIng nnd dIsfrIbufIon dynnmIcs. IosIdos confroI ovor fho
Journal of Media Business Studies 59

sfrnfogIc Iovor of dIsfrIbufIon (Cnvos, 2000), ono of fho ronsons mny bo
fhnf mnjors nro gonornIIsf orgnnIznfIons focusIng on mnInsfronm gonros
IIko o, rock, nnd !&I, whIch nro moro IIkoIy fo onfor fho chnrfs
(ogus, l999; Joffcuff & Irnff, 2002).
IndIos mny oxIoIf fho roInfIonshI by ncquIrIng from fho formor fho
cnIfnI roquIrod fo fInnnco scoufIng for nnd InunchIng now fnIonf.
AccordIngIy, osfnbIIshod fIrms In modIn IndusfrIos nonr fo cronfo,
susfnIn, nnd nurfuro n nofwork of foodor fIrmsof young, onfro-
ronourInI fIrms busy coIonIzIng now nIchos (MnrkIdos, 2006: 24). Mosf
InforosfIngIy, fho roInfIonshI bofwoon mnjor nnd IndIos rocnIIs fhnf of
Inrgo hnrmncoufIcnI fIrms nnd smnII bIofochnoIogy fIrms. In fhIs
confoxf, fho formor roIy on fho Inffor fo cnrry ouf oxIornfIon In
InnovnfIvo nnd rIsky rosonrch domnIns, whIIo bIofochnoIogy fIrms oxIoIf
hnrmncoufIcnI fIrms` nccoss fo mnrkofIng nnd dIsfrIbufIon rosourcos fo
ron commorcInI rownrd from InnovnfIon (KnInn, Murrny & Hondorson,
2003; KhIIjI, MroczkowskI & IornsfoIn, 2006). Iy doIng so, mnjors
mnnngo fo nchIovo orgnnIznfIonnI nmbIdoxforIfy (O`!oIIIy & Tushmnn,
2004), or fho sImuIfnnoous nchIovomonf of oxIornfIon (I.o. InnovnfIon)
nnd oxIoIfnfIon (I.o. chnrf succoss).
Wo suggosf fhnf fho sfudy of chnrfs mny shod IIghf on n vnrIofy of
comofIfIvo dynnmIcs chnrncforIzIng modIn soffIngs, ns fhoy cnrry ouf
sovornI funcfIons (Annnd & Ioforson, 2000; owd, 2004). IIrsf, fhoy
sIgnnI orgnnIznfIons InformnfIon on fho succoss nfforns nnd IIfocycIos of
fhoIr roducfs, ns woII ns fhoso of comofIfors. Socond, fhoy rovIdo
InformnfIon fo ofhor koy sfnkohoIdors ns whoIosnIo dIsfrIbufors nnd
rofnIIors, ns woII ns concorf romofors nnd rndIo nnd TV rogrnmmors.
ThIrd, fhoy hoI consumors mIfIgnfo fho fyIcnI uncorfnInfy
chnrncforIzIng qunIIfy nssossmonfs of modIn nnd cuIfurnI roducfs
(Cnvos, 2000), sIgnnIIIng fhoso roducfs fhnf hnvo nIrondy boon
nccofod by n gIvon shnro of oor consumors. Iourfh, fhoy nddross
modIn comnnIos In shnIng fhoIr !& oIIcIos, rovIdIng cIonr foodbnck
on fho fyoIogy of nrfIsfs, nIbums, nnd gonros fhnf nro moro IIkoIy fo
mnko If fo fho fo.

Limitations and Future Research
Our rosonrch cnIIs for n numbor of ofonfInI nvonuos for fufuro rosonrch,
In ordor fo dooon fho undorsfnndIng of onfroronourInI dynnmIcs In
modIn IndusfrIos. Iufuro rosonrch mny furfhor oxIoro fho roInfIonshI
bofwoon orgnnIznfIonnI form nnd gonros. In nrfIcuInr, If wouId bo
hoIfuI fo gnIn n dooor undorsfnndIng of how gonro dynnmIcs InfIuonco
nnd/or modInfo fho roInfIonshI nmong orgnnIznfIonnI form, comofIfIvo
succoss, nnd InnovnfIon. Ono of fho consoquoncos of fho ndvonf of dIgIfnI
fochnoIogIos In fho confonf IndusfrIos hns boon fho oxIosIon of
dIsfrIbufIon chnnnoIs nnd fho ossIbIIIfy fo dovoIo vInbIo busInoss
modoIs for sorvIng nIcho mnrkofs. ThIs ovonfunIIy monns fhnf fho
sIgnnIIng offocf of fo soIIIng nIbums chnrfs fo ofonfInI nudIoncos fonds
60 Dubini and ProveraOrganization Form in the Music Industry

fo roduco, nrfIcuInrIy ns IognI commorco of fIfIos In n dIgIfnI formnf
grows. Thoroforo, If wouId bo nrorInfo fo comIomonf fho nnnIysIs for
fo orformIng fIfIos In dIfforonf chnnnoIs nnd chock for consIsfoncy of
rosuIfs In forms of fho roInfIonshI bofwoon orgnnIznfIonnI form nnd
orformnnco. Moroovor, n IongIfudInnI sfudy mny bo hoIfuI fo nssoss
whofhor fho koy dynnmIcs of onfroronourInI succoss ovoIvo ovor fImo.
Ior Insfnnco, If wouId bo InforosfIng fo undorsfnnd fho ofonfInI offocf on
onfroronourInI ncfIvIfy of fho gIobnI rocossIon nffocfIng fho musIc
Indusfry bofwoon 2000 nnd 2004. If couId bo oxocfod, for Insfnnco, fhnf
fho rocossIon mny nognfIvoIy Imncf InnovnfIon, ns orgnnIznfIons mny
focus on frndIfIonnI, moro rodIcfnbIo ncfs, rnfhor fhnn rIsk Invosfmonfs
In now roIonsos (soo Ioforson & Iorgor, l9?5; !oos, l992; owd, 2004).
Howovor, our modoI onIy oxInInod n IImIfod nmounf of fho vnrInnco
of fho orformnnco of fho nIbums InvoIvod. ThIs suggosfs fhnf fhoro mny
bo ofhor Issuos nf Iny whon rodIcfIng nIbum orformnnco. In
nrfIcuInr, wo hnvo nof yof IncIudod n sof of confroI vnrInbIos, fhnf mIghf
bo roIovnnf fo confroI for fho offocf of fho chnrncforIsfIcs of fho comnnIos
(boyond orgnnIznfIonnI form) nnd of fImo. Thoso fwo fncfors mny nccounf
for n nrf of fho vnrInnco fhnf Is nof oxInInod by our modoI.
Iurfhormoro, our cInssIfIcnfIon of InnovnfIon Is sfIII quIfo sImIo. Ior
Insfnnco, wo hnvo nof yof nffomfod fo monsuro fho novoIfy of fho gonro,
whIch In fhIs Indusfry Is n vory Imorfnnf IndIcnfor of fruIy InnovnfIvo
bohnvIor. In nrfIcuInr, fufuro rosonrch mny InvosfIgnfo whofhor
commorcInI succoss nnd InnovnfIon nro sIgnIfIcnnfIy InfIuoncod by fho
fyoIogy of gonro. ThIs Is n vnrInbIo fhnf Is vory dIffIcuIf fo
oornfIonnIIzo, duo fo fho fncf fhnf gonro confnmInnfIon Is n koy oIomonf
drIvIng novoIfy In confonf IndusfrIos.
Moroovor, wo hnvo nof cnfurod fho ouInrIfy of fho nrfIsf nnd fho
oxfonf fo whIch ho/sho cnn nffocf fho orcoIvod InnovnfIvonoss nnd
ouInrIfy of fho nIbum. As fho durnfIon In chnrfs docronsos, succossfuI
nrfIsfs fond fo Infroduco sovornI songs In n IImIfod nmounf of fImo, so ns
fo Incronso fho hnIo offocf nnd mnxImIzo fhoIr ouInrIfy, fhus nffocfIng
fho fIfIo orformnnco. Wo susocf fhnf fho orson or grou InvoIvod nnd
fho qunIIfy of fhoIr musIc mny bo n koy drIvIng forco of fho orformnnco
of fho nIbums roIonsod. onofhoIoss, wo do nof fhInk fhnf fho IncIusIon of
confroI vnrInbIo for fIrm nnd fImo offocfs wouId sIgnIfIcnnfIy wonkon our
fIndIngs. Indood, fhoso mIghf roInforco fho vIow fhnf orgnnIznfIonnI
fncfors drIvo suorIor orformnnco In fhIs Indusfry.
Iurfhormoro, our nnnIysIs focusod on fho musIc Indusfry. Wo hoId
fhnf cross-Indusfry nnnIysos mny rovIdo InforosfIng InsIghfs on fho
comofIfIvo dynnmIcs of onfroronourshI In modIn soffIngs. !osonrch on
TV roducfIons, movIos, rndIo brondcnsfIng, ubIIshIng, ofc. mny usod fo
comnro nnd confrnsf ovIdonco from fho musIc Indusfry.
Our nnnIysIs focusod on fho frndIfIonnI musIc busInoss modoI, bnsod
on fho roducfIon nnd dIsfrIbufIon of hysIcnI oufufs (Cs).
onofhoIoss, modIn IndusfrIos hnvo boon roconfIy nffocfod by busInoss
modoI dIsrufIon, foIIowIng fho dIffusIon of dIgIfnI fochnoIogIcnI
Journal of Media Business Studies 61

Infforms. ConsoquonfIy, fufuro rosonrch mny InvosfIgnfo fho roIo Inyod
by dIfforonf chnnnoIs In gIvIng vIsIbIIIfy fo now fIfIos nnd whofhor dIgIfnI
nnd Infornof-bnsod nIIcnfIons hnvo nn Imncf on onfroronourInI
ncfIvIfy In modIn soffIngs.
IInnIIy, nddIfIonnI monsuros of orformnnco nnd InnovnfIon mny bo
omIoyod. Ior Insfnnco, wo suggosf fo woIghf monsuros of chnrf IongovIfy
wIfh fho IovoI of chnrf osIfIons ronchod, ns woII ns wIfh ofonfInI
sonsonnIIfy offocfs (o.g. onforIng fho chnrfs boforo ChrIsfmns ImIIos
soIIIng moro rocords fhnn In mId-Augusf).

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Acknowledgement
Tho nufhors wIsh fo ncknowIodgo fho hoI of ChInrn InoIIno, Sfofnno TonoIIn nnd MnrIn
MnncusI In fho coIIocfIon nnd nnnIysIs of dnfn, ns woII ns fho orgnnIznfIonnI suorf from
fho Arf, ScIonco nnd KnowIodgo (ASK) Confro of IocconI !nIvorsIfy

66