Business Innovation and Disruption in Publishing

This is the first volume in a book series examining how organizations in the creative industries respond to disruptive change and how they themselves generate business innovations. The aspiration of this book series is to understand some of the common forces behind the disruptions occurring in so many creative industries today and identifying the most promising strategies and responses by organizations to create new value propositions, business models and business practices that can enable these industry participants to cope with and eventually thrive as their industries and sectors are transformed. The chapters included in the volume examine the processes of disruption and transformation due to the technology of the Internet, social forces driven by social media, the development of new portable digital devices with greater capabilities and smaller size, the decreasing costs of new information, and the creation of new business models and forms of intellectual property ownership rights for a digitized industry. The context for this volume is the publishing industries, understood as the industries for the publishing of fiction and non-fiction books, academic literature, consumer as well as trade magazines, and daily newspapers. This volume includes chapters by an internationally diverse array of media scholars whose chapters provide insights into these phenomena in Eastern Europe, Finland, France, Germany, Norway, Portugal, Russia, and the United States, using different methodological frameworks including, but not limited to, surveys, in-depth interviews and multiple-case studies. One gap that this book series seeks to fill is that between the study of business innovation and disruption by innovation scholars largely based in business school settings and similar studies by scholarly experts from non-business school disciplines, including the broader social sciences (e.g. sociology, political science, economic geography) and creative industry based professional school disciplines (e.g. architecture, communications, design, film making, journalism, media studies, performing arts, photography and television). Future volumes of this book series will examine disruption and business innovation in the film, video and photography sectors (volume two), the music sector (volume three) and interactive entertainment (volume four), with subsequent volumes focusing on the most relevant developments in creative industry business innovation and disruption that emerge.

Digitization of the music industries in Australasia [Editorial]

The music business is one of the most international of all the cultural industries. Music, industry practices, and people travel easily across country borders and the major music companies are dominating national music markets across the globe. However, at the same time the music industries in different countries are very idiosyncratic. Music is an ingrained part of a country’s history, its culture and heritage. One aspect of this idiosyncrasy is related to how creatives, audiences and music organizations are affected by and is able to take advantage of the ongoing digitization of society...

The impact of social media features on print media firms’ online business models

Many newspapers and magazines have added “social media features” to their web-based information services in order to allow users to participate in the production of content. This study examines the specific impact of the firm’s investment in social media features on their online business models. We make a comparative case study of four Scandinavian print media firms that have added social media features to their online services. We show how social media features lead to online business model innovation, particularly linked to the firms’ value propositions. The paper discusses the repercussions of this transformation on firms’ relationship with consumers and with traditional content contributors. The modified value proposition also requires firms to acquire new competences in order to reap full benefit of their social media investments. We show that the firms have been unable to do so since they have not allowed the social media features to affect their online revenue models.

Linking dynamic-capability portfolios and innovation outcomes

The objective of this paper is to explore the relationship between dynamic capabilities and different types of online innovations. Building on qualitative data from the publishing industry, our analysis revealed that companies that had relatively strong dynamic capabilities in all three areas (sensing, seizing and reconfiguration) seem to produce innovations that combine their existing capabilities on either the market or the technology dimension with new capabilities on the other dimension thus resulting in niche creation and revolutionary type innovations. Correspondingly, companies with a weaker or more one-sided set of dynamic capabilities seem to produce more radical innovations requiring both new market and technological capabilities. The study therefore provides an empirical contribution to the emerging work on dynamic capabilities through its in-depth investigation of the capabilities of the four case firms, and by mapping the patterns between the firm's portfolio of dynamic capabilities and innovation outcomes.

The enemy of music : modeling the behavior of a cultural industry in crisis

The purpose of this explorative study is to contribute to the understanding of current music industry dynamics. The situation is undeniably quite dramatic: Since the turn of the millennium, the global music industry has declined by $ US 6.2 billion in value—a fall of 16.3% in constant dollar terms. IFPI, the trade organization representing the international recording industry, identifies a number of exogenous factors as the main drivers of the downturn. This article suggests that other factors, in addition to those identified by IFPI, may have contributed to the current difficulties. A model is presented which indicates that business strategies which were designed to cope with the challenging business environment have reduced product diversity, damaged profitability, and contributed to the problem they were intended to solve.

Reluctantly virtual : modelling copyright industry dynamics

During the evolution of the music industry, developments in the media environment have required music firms to adapt in order to survive. Changes in broadcast radio programming during the 1950s; the Compact Cassette during the 1970s; and the deregulation of media ownership during the 1990s are all examples of changes which have heavily affected the music industry. This study explores similar contemporary dynamics, examines how decision makers in the music industry perceive and make sense of the developments, and reveals how they revise their business strategies, based on their mental models of the media environment. A qualitative system dynamics model is developed in order to support the reasoning brought forward by the study. The model is empirically grounded, but is also based on previous music industry research and a theoretical platform constituted by concepts from evolutionary economics and sociology of culture. The empirical data primarily consist of 36 personal interviews with decision makers in the American, British and Swedish music industrial ecosystems. The study argues that the model which is proposed, more effectively explains contemporary music industry dynamics than music industry models presented by previous research initiatives. Supported by the model, the study is able to show how “new” media outlets make old music business models obsolete and challenge the industry’s traditional power structures. It is no longer possible to expose music at one outlet (usually broadcast radio) in the hope that it will lead to sales of the same music at another (e.g. a compact disc). The study shows that many music industry decision makers still have not embraced the new logic, and have not yet challenged their traditional mental models of the media environment. Rather, they remain focused on preserving the pivotal role held by the CD and other physical distribution technologies. Further, the study shows that while many music firms remain attached to the old models, other firms, primarily music publishers, have accepted the transformation, and have reluctantly recognised the realities of a virtualised environment.

The transformation of Sweden from a haven for online pirates to the hope of the digital music industry [Musikbranschens föregångsland]

1974 was the year when the Swedish pop group ABBA won the Eurovision Song Contest in Brighton and when Blue Swede reached number one on the Billboard Hot 100 in the US. Although Swedish pop music gained some international success even prior to 1974, this year is often considered as the beginning of an era in which Swedish pop music had great success around the world. With brands such as ABBA, Europe, Roxette, The Cardigans, Ace of Base, In Flames, Robyn, Avicii, Swedish House Mafia and music producers Stig Andersson, Ola Håkansson, Dag Volle, Max Martin, Andreas Carlsson, Jorgen Elofsson and several others have the myth of the Swedish music miracle kept alive for nearly more than four decades. Swedish music looks to continue reap success around the world, but since the millennium, Sweden's relationship with music has been more focused on relatively controversial Internet-based services for music distribution developed by Swedish entrepreneurs and engineers rather than on successful musicians and composers. This chapter focusses on the music industry in Sweden. The chapter will discuss the development of the Internet services mentioned above and their impact on the production, distribution and consumption of recorded music. Ample space will be given in particular to Spotify, the music service that quickly has fundamentally changed the music industry in Sweden. The chapter will also present how the music industry's three sectors - recorded music, music licensing and live music - interact and evolve in Sweden.

Boken, berättelsen, pengarna I den digitala tidsåldern [The book, the story and the money in the digital age]

År 2012 är distribution av litteratur via internet inte längre en framtidsvision, utan ett etablerat format vid sidan av traditionella format som exempelvis pocketboken, den inbundna boken och ljudboken (AAP 2011; Amazon 2011; PaidContent 2011). Men den digitala tekniken etablerar inte enbart ett nytt format, utan förändrar också grundförutsättningarna för litterära konstformer och marknader. Detta kapitel behandlar en betydelsefull aspekt av denna förändring, nämligen hur den digitala tekniken påverkar relationen mellan läsare och författare och ökar läsarens inflytande över den kreativa processen. I den digitala tidsåldern är det möjligt att skapa berättelser online i en interaktiv process som involverar både läsare och författare. Kapitlet presenterar modeller för hur sådan “samproducerad e-litteratur” förändrar marknaden för litteratur och hur den påverkar den traditionella litteraturen.

Conceptualizing the interplay of knowledge accumulation and integration capabilities in service innovation-based competitive strategy : a project-oriented firm context

While past knowledge-based approaches to service innovation have emphasized the role of integration of knowledge in the provisioning of solutions, these approaches fail to address complexities involved with knowledge integration in project-oriented context, specifically, how the firm’s capability to acquire new knowledge from clients and past project episodes influence the development of new service solutions. Adopting a dynamic capability framework and building on knowledge-based approaches to innovation, this paper presents a conceptual model that captures the interplay of learning capabilities and the knowledge integration capability in the service innovation-based competitive strategy. Implications to theory and directions for future research are discussed.

The music industry in an age of digital distribution

In 1999 the global recorded music industry had experienced a period of growth that had lasted for almost a quarter of a century. Approximately one billion records were sold worldwide in 1974, and by the end of the century, the number of records sold was more than three times as high. At the end of the nineties, spirits among record label executives were high and few music industry executives at this time expected that a team of teenage Internet hackers, led by Shawn Fanning (at the time a student at Northeastern University in Boston) would ignite the turbulent process that eventually would undermine the foundations of the industry.

IT governance stability in a political changing environment : exploring potential impacts in the public sector

Public sector organisations (PSOs) operate in information-intensive environments often within operational contexts where efficiency is a goal. What's more, the rapid adoption of IT is expected to facilitate good governance within public sector organisations but it often clashes with the bureaucratic culture of these organisations. Accordingly, models such as IT Governance (ITG) and government reform -in particular the new public management (NPM)- were introduced in PSOs in an effort to address the inefficiencies of bureaucracy and under performance. This work explores the potential effect of change in political direction and policy on the stability of IT governance in Australian public sector organisations. The aim of this paper is to examine implications of a change of government and the resulting political environment on the effectiveness of the audit function of ITG. The empirical data discussed here indicate that a number of aspects of audit functionality were negatively affected by change in political direction and resultant policy changes. The results indicate a perceived decline in capacity and capability which in turn disrupts the stability of IT governance systems in public sector organisations.

Factors for IT-enabled public sector process improvements in developing economies

IT resources are indispensable in the management of Public Sector Organizations (PSOs) around the world. We investigate the factors that could leverage the IT resources in PSOs in developing economies. While research on ways to leverage IT resources in private sector organizations of developed countries is substantial, our understanding on ways to leverage the IT resources in the public sector in developing countries is limited. The current study aspires to address this gap in the literature by seeking to determine the key factors required to create process value from public sector IT investments in developing countries. We draw on the resource-centric theories to imply the nature of factors that could leverage the IT resources in the public sector. Employing an interpretive design, we identified three factors necessary for IT process value generation in the public sector. We discuss these factors and state their implications to theory and practice.

It’s not only what I think but what they think! The moderating effect of social norms

The current research extends our knowledge of the main effects of attitude, subjective norm, and perceived control over the individual’s technology adoption. We propose a critical buffering role of social influence on the collectivistic culture in the relationship between attitude, perceived behavioral control, and Information Technology (IT) adoption. Adoption behavior was studied among 132 college students being introduced to a new virtual learning system. While past research mainly treated these three variables as being in parallel relationships, we found a moderating role for subjective norm on technology attitude and perceived control on adoption intent. Implications and limitations for understating the role of social influence in the collectivistic society are discussed.

A criteria based approach for evaluating innovation commercialisation

This study attempts to provide a criteria-based approach that can be used to evaluate the potential for technology transfer and commercialisation of a new technology from university research. More specifically, this study offers the critical factors for assessing marketability and feasibility of an innovation for the commercialisation and technology transfer process. The Delphi technique has been used to refine and categorise assessment criteria identified from various models and frameworks that emerged from literature. Proposed categories of criteria that are found to be important in the evaluation and assessment of a new technology for the commercialisation purpose include: Technological Readiness; Legal and Regulatory; Social Benefits and Impact; Economic and Market Factors.