Multidimensional Niche Locations of Independent Film Production Companies in Hollywood

Abstract

This paper develops an account of how multiple dimensions of an organization¡¯s niche and the mobility inertia that an organization faces in its niche location explain an organization¡¯s likelihood to change from its niche location. I examine the independent film production companies in the U.S. film industry from 1997 to 2007. I find that the likelihood of an independent production company¡¯s change in its distribution niche location depends on (1) its repeated ties with distributors in that niche location; (2) the value of the resources of the independent¡¯s labor niche location; and (3) the value of the resources of the independent¡¯s distribution niche location. An independent¡¯s repeated ties with distributors in the independent¡¯s distribution niche location impede the independent from changing from that location. An independent¡¯s high-status labor niche location, in terms of high-value labor resources, and low-status distribution niche location, in terms of low-value distribution resources, trigger the independent¡¯s increase in the distribution niche location and impede the decrease in the distribution niche location. These findings suggest the interdependence among multiple dimensions of an organization¡¯s niche and demonstrate both the catalysts for and constraints on an organization¡¯s change in its niche location.