Firms In Creative Industries Research Articles

THE ROLE OF INNOVATION IN ENHANCING FINANCIAL PERFORMANCE IN YOGYAKARTA'S CREATIVE INDUSTRY

This study explores the impact of various types of innovation—organizational, process, product, and business model innovations—on the financial performance of firms in Yogyakarta's creative industry. The research employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze data collected from 57 creative industry firms. The findings indicate that organizational innovation significantly enhances process and business model innovations, which in turn positively affect financial performance. However, the direct impact of organizational innovation on product innovation is not significant, suggesting the need for a more integrated approach to foster product development. The study highlights the essential of innovative practices and adaptive business models in driving financial success in the creative industry. These insights are crucial for managers and policymakers aiming to boost the financial performance of creative firms through strategic innovation.

Location attributes explaining the entry of firms in creative industries: evidence from France

This paper focuses on creative industries and the role played by the existing spatial distribution and agglomeration economies of these activities in relation to their entry decisions. We rely on employment and firm-level data in the creative industries (provided by INSEE) and compare the location of new establishments in the creative and non-creative industries between 2009 and 2013 in French departments (NUTS 3 regions). We use count data models and spatial econometrics to show that location determinants are rather similar in creative and non-creative industries and that specialisation in creative industries positively influences the entry of all other industries. The French case provides new insights to understand the geographical patterns of creative industries.

Entrepreneurial firm growth in creative industries: fitting in … and standing out!

Firm growth in creative industries, which are characterized by craftmanship, imagination, artistic quality and innovativeness, is a conundrum. By means of a matched pair case study design of market leaders and followers in seven creative industries in the Netherlands, the present paper seeks to tackle this conundrum. It suggests that for entrepreneurial firms to develop (instead of stagnating or demising), founders need to fit in, or understand the value creation and conversion processes in vigor within their industry. For firms to grow by means of an expansion of their markets, founders need to stand out, or create resource advantages vis a vis other firms in the industry, which could lie in an internationalization or a digitalization vantage. Not despite of, but because of their quality focus, which accrues to reputation advantages and impact, creative firms succeed in growing. Lessons are drawn from how and why firms in creative industries develop and grow. These may contribute to firm growth assessment practices and process theories.

An attention-based perspective on growth and value creation of firms in creative industries

Drawing on an attention-based perspective, we explore growth’s cognitive and behavioral underpinnings in creative industries, which are characterized by craftmanship, imagination, artistic quality and innovativeness. Market leaders and followers of seven creative sectors in the Netherlands have been studied through a matched pair case study design. This article suggests that for entrepreneurial firms to develop (instead of stagnating or demising), founders need to understand the value creation and conversion processes in vigor within the industry. For firms to grow by means of an expansion of their markets, founders need to create resource advantages vis-à-vis other firms in the industry, which could lie in an internationalization or a digitalization vantage. Firm founders in creative industries create value opportunities that lead to firm development and growth not despite of, but because of their quality focus, which accrues to reputation advantages and impact. We discuss the generalizability of our findings and the saliency of existing growth measures.

Intelligent Entertainment: Shaping Policies on the Algorithmic Generation and Regulation of Creative Works

The virtual spaces where intellectual property (IP) meets artificial intelligence (AI) are shaping the future of work. Creative industry firms employ AI to plan, edit, and remix artistic and literary works, in use cases ranging from computer games and graphics to short stories, news articles, songs, screenplays, films, and beyond. Policy in this area is driven in significant part by lobbyists' and lawyers' moves to implement AI to control the content of creative works and online communications and intergovernmental efforts to enhance Internet copyright enforcement amidst floods of digital speech. In the far future, intellectual property law may become less relevant as advances in computing and AI contribute to an abundance of creative works. In the near term, the copyrightability of AI-generated works and the governance of human expression by AI systems are coming to the fore. The significance of human creators could fade as either the authors or the users of generative adversarial networks and other AI implementations create and own expressive output on a previously unimagined scale. Copyright law may inhibit this process by classifying works such as those generated by OpenAI's GPT-3 model as potentially unlawful to create or publish without the permission of the writers, recording artists, and camera operators with whose works the models are trained. Alternatively, copyright and intellectual property in general might excuse and empower AI programming that helps people create using without substantially replicating a specific work or works. The use of AI to enforce legal or social norms represents a growing market and will raise public policy concerns. Courts and legislators know that the ease and speed of digital communications create gaps in legal enforcement. As a consequence, governments and industry conjure up AI solutions for detecting and limiting the spread of illegal digital content. While some may welcome reductions in the difference between legal obligations and legal compliance, others warn that unreasonable and overbroad application of legal norms will harm innocent parties and public discourse. This essay therefore considers the case for limiting AI's role in enforcing intellectual property rights to protect Internet users from the erroneous flagging and removal of their original commentary and creative works. It concludes with some observations concerning the importance of human lawyers, judges, and jurors in governing fruits of the imagination. The essay introduces a symposium on AI and the future of intellectual property with a focus on big data and algorithms. The contributors consider AI as the defendant in a lawsuit, AI as a means to control the proliferation of IP rights and to promote the fair use of entertaining or informative works, AI as an engine that mines texts and images for fuel, and AI as a threat to the traditional freedoms that humans have crafted.

Ekonomski doprinos kreativne industrije i primer Srbije

The creative industry plays an important role in the economic development of countries. Its role has been the topic of various studies, confirming not just the importance, but also the specifics of its operations and characteristics. Creative industry in Serbia is an important part of the economy. This paper creates additional value in terms of understanding its economic impact and shows that this sector in Serbia demonstrated evident growth in the analysed period, with the average increment rate of the number of entities being 6.2% when observing the narrow classification and 7.8% when observing the broad one. Having in mind the structure of the sector in Serbia, 73.8-77% of its participants are entrepreneurs, and 92-93% of the companies are micro firms. In addition to this, most of the creative industry firms are registered in the capital city. In the observed period, GVA of the creative industry's private sector increased by 64.9% in terms of the narrow classification, with average annual growth rate of 18.1%. The share of GVA in GDP of the creative industry when taking into account the broad classification is higher compared to certain traditional industries in Serbia, such as construction, and somewhat lower than the share the agriculture. This paper also analyses the employment structure in this sector and its impact on overall employment.

Nexus between creative industries and the built environment: Creative placemaking in inner Auckland

A significant body of literature has examined the location decision-making of creative industry firms. However, research on the nexus between design creative industries and the built environment remains limited. The key finding of this qualitative research is that design creative industries are mostly the users of the inner city's former industrial buildings that are occupied on leases from property owners who are responsible for the initial physical upgrading. This condition is largely due to the low level of property ownership among this group and the lack of incentive to invest additional capital to their business properties. Therefore, design creative industries cannot be conceptualized as leading actors in urban redevelopment or initiators of urban transformation on a large scale. Instead, they represent a latent demand for physical space and a rich source of inspiration and creative potential. In this regard, design creative industries play a key role as enablers of postindustrial real estate development driven by proactive property developers who transform former industrial buildings into a new form of revenue-generating urban commodities.

Growth strategies in creative industries

In recent years there has been increased emphasis, in both academic and political arenas, on the economic importance of the creative industries (CIs). As a result, policymakers are increasingly looking to the CIs as a source of potential growth. The literature on CIs suggests that these industries are predominantly content based rather than market based, with artistic priorities taking precedence over business concerns. This research examines growth strategies in the CIs using qualitative and quantitative methods. An in‐depth case study of 23 firms in CIs suggests that these firms tend to view growth as a secondary goal compared to the goal of creative output. The case study further yields the proposition that firms in the CIs can benefit from adopting what we refer to as an accordion growth strategy, in which firms grow and shrink to accommodate artistic content as well as in response to external forces. Statistical analysis of survey data confirms that firms in the CIs are less likely to have ambitions to grow and more likely to adopt an accordion growth strategy than firms in technology industries. These findings suggest that the policy emphasis on growth in the CIs might be misguided and should allow for alternating periods of growth and shrinkage.

Agglomeration economies in creative industries

This paper examines agglomeration effects on the productivity of Chinese firms in the creative industries between 2012 and 2014. We estimate productivity with a production function approach, and test whether three measures of agglomeration—namely, specialization, diversity, and density—affect the productivity of firms in creative industries. According to our results, that the density elasticity of productivity is 0.31, which suggests that agglomeration economies matter for creative industries. Urbanization economies resulting from diversity in service industries are the main source of agglomeration economies, but there is no specialization effect after controlling for firm size, ownership, and industry concentration. Further, availability of communication, represented by digital access and transportation convenience, boosts knowledge spillovers and thus enhances urbanization economies. Our findings are robust to alternative specifications, outcome and agglomeration measures, and treatment of outliers.

The evolution and embeddedness of knowledge-intensive entrepreneurial firms in creative industries: contrasting experienced and non-experienced entrepreneurs in the Swedish fashion industry

ABSTRACTThis article focuses on the micro-level processes whereby knowledge-intensive entrepreneurs become embedded in networks to access resources, and in doing so help transform a region. Our analysis contributes to theoretical debates about how the entrepreneurs achieve this aim in order to develop their knowledge-intensive entrepreneurial ventures in creative industries. Our conceptualization specifies how entrepreneurs can use embeddedness in networks in order to access specific types of resources, during the pre-entry phase, the establishment phase, and the post-entry phase. The textiles and fashion industry is an interesting setting to explore these topics because of the rapid industrial transformation from mass production of textiles to large e-commerce firms. Our results suggest that pre-history of the individual entrepreneur has long-term effects upon access to unique resources within the industry, enabling this group to more quickly build their entrepreneurial ventures. Our qualitative case study contributes to theoretical discussions of how micro-processes of KIE entrepreneurship can renew regions and traditional industries, because our analysis shows the enduring impact of past industrial, regional and family ties.

Impact of broadband uses on labour demand derived from the innovative behaviour of firms in creative industries

This research explores the effect of the implementation and intensive use of broadband on the labour demand induced by the innovative behaviour of Peruvian firms of creative industries (CI) in comparison to Knowledge Intensive Business Services (KIBS) and Services companies. The 2015 Business National Survey database was used. It was found that both productive and intensive uses of broadband encourage labour demand as a reflection of successful innovations' introductions, in the three analysed industries (except for CI's second use). In contrast, the market-oriented uses of broadband reduce the likelihood of hiring staff as corollary of innovative behaviour among the KIBS and CI firms. In addition, among CIs firms, the study found that only the productive uses of broadband -in line with the intrinsic characteristics of its own knowledge base- could promote processes that lead to successful innovation results and positive effects on labour demand to a greater extent than services and KIBS firms. The results highlight the feasibility of stimulating innovation processes and employment through information and communications technology policies among strategic service sub-sectors as creative industries in emerging digital ecosystems.

Strategic design in small creative industry firms

Organizations, especially within the creative industries, are increasingly faced with limitations while applying classical strategy theories due to changes in social and economic environmental factors. The purpose of this article is to offer a theoretical-conceptual framework for the strategic design of small firms in the creative industries. The framework is based on a meta-analysis and subsequent discussion of literature, which resulted in four major strategic dimensions: vision, strategy formulation, resources and stakeholder relations. From this study, strategic dimensions may be further observed and validated empirically. It may also contribute towards understanding more organic and emerging strategic models. The theoretical-conceptual framework is intended to foster the continuous debate and scientific development of Strategy as an academic field, since scientific production is still rare and fragmented in this field.

Knowledge‐intensive entrepreneurship in manufacturing and creative industries: Same, same, but different

To date, there is little empirical evidence on the specificities and commonalities of entrepreneurship in the creative industries relative to other sectors. This paper explores this issue by comparing knowledge‐intensive entrepreneurship (KIE) in the manufacturing and creative industries by examining their differences and similarities. Given the lack of prior studies, our comparison is exploratory and based on descriptive statistics. We use survey data that comes from a large‐scale Eurupean Union research project (AEGIS) which studied KIE firms across 10 countries and a diverse set of industries. Our analysis shows that KIE firms in creative industries resemble those in manufacturing in several dimensions, but also that there are some pronounced differences, such as (i) a higher level of knowledge intensity of KIE firms in creative industries, with higher educational attainment of both founders and employees; (ii) that personal financing plays a much larger role in creative industries; (iii) KIE in creative industries focuses more on service innovations, but introduces radical innovations to a lesser extent; and (iv) they remain smaller in terms of number of employees and turnover, but are more profitable than KIE in manufacturing relative to their size. We end the paper by pointing out directions for future research, based on our exploratory results.

Can creative firms thrive without copyright? Value generation and capture from private-collective innovation

Accounts of the copyright industries in national reports suggest that strong intellectual property (IP) rights support creative firms. However, mounting evidence from sectors such as video game production and 3-D printing indicate that business models based on open IP can also be profitable. This study investigates the relationship between IP protection and value capture for creative industry firms engaged in collective/open innovation activities. A sample of 22 businesses interviewed in this study did not require exclusive ownership of creative materials but instead employed a range of strategies to compete and capture value. Benefits for some firms resemble those for participants in private-collective innovation (PCI), originally observed in open-source software development. Advantages of PCI include the ability to commercialize user improvements and a reduction in transaction costs related to seeking and obtaining permission to innovate existing ideas. Some creative firms in this study were able to generate and capture value from PCI in two directions: upstream and downstream. These dynamics offer a mechanism to understand and articulate the value of openness for creative industries policy and management of creative organizations.

A Risky Business? The Role of Incentives and Runaway Production in Securing a Screen Industries Production Base in Scotland

A Risky Business? The Role of Incentives and Runaway Production in Securing a Screen Industries Production Base in Scotland

Application of information technology in creative economy: Manufacturing vs. creative industries

The primary purpose of this paper is to review the historical development of the application of IT, its relationships with corporate strategy, and its influence on corporate performance. The secondary purposes are to empirically investigate the above relationships and the differences in these relationships between creative and manufacturing industries and to identify the most powerful IT traits for a firm's success in each industry in Korea. The research findings confirmed that application of IT provides several kinds of competitive advantage such as efficiency, threat, functionality, attack, and integration, and that it significantly contributes to corporate performance. Application of IT plays significant roles in mediating between corporate strategy and performance. The research findings indicate that IT traits of efficiency and integration are the two most powerful competitive advantages for corporations. These research results indicate that corporate strategy is essential in delivering high corporate performance in both creative and manufacturing industries. Firms in creative industries should seriously consider IT traits of efficiency and threat, while firms in manufacturing industries should deeply take IT traits of efficiency and integration into account.

RECUPERANDO LA CADENA DE VALOR MEDIANTE LA CUSTOMERIZACIÓN Y LA VINCULACIÓN DE SERVICIOS

This article aims to contribute to understanding on how to recover value chain and firm revenues through innovative service channel linking and value co-creation. The work examines how creative industry firms integrate customers as they add digital services by assessing different methods of purchasing. The results emphasize the importance of managing customers according to their attitudes and confirm the hypothesis that link channels have a mediating role in value co-creation. The findings indicate that strategies which facilitate the dynamic interaction of customers in the link channels are more effective at generating revenue growth than traditional ‘push’ strategies based upon analysis of passive customer demand. Keywords: Value chain, service dominant logic, customerization, channel linking, performance.

Living Hand to Mouth: Why the Bohemian Lifestyle Does Not Lead to Wealth Creation in Peripheral Regions?

Using demographic data from a study of micro and small business owners operating in the crafts industry in rural Mid and West Wales, this paper identifies a mismatch between government business incentives and the bohemian values of local enterprises. This is highlighted as a contributing factor to explain why creative organizations in Wales do not generate the regional economic wealth expected from those working within the creative industries. Chaston [2008. Small creative industry firms: A development dilemma? Management Decision, 46(6), pp. 819–831] suggests that national policy relating to the economic development of regions is misguided because it is based on data collected in major cities. In periphery locations, many creative operations are concentrated in art and craft, yet little is currently known about these enterprises, and a limited amount of research has been conducted involving the craft sector in general. An initial investigation into micro and small craft enterprises is presented here, which indicates that although policy-makers view all creative firms as capable of economic development that will deliver growth and jobs [Oakley, 2011. In its own image: New labour and the cultural workforce, Cultural Trends, 20(3–4), pp. 281–289], the type of creative firm attracted to the periphery regions of Mid and West Wales does not necessarily exhibit the type of growth anticipated from the creative industries sector.

Creativity-Relevant Personal Characteristics among Indonesia Creative Workers

The study aims to identify Creativity-relevant Personal Characteristics among creative workers in Indonesia’s creative industry. Identification of the constituent elements of the nature of the changes needs to be measured. Researchers have advocated replacing creativity-relevant personal characteristics based on the five-factor model to investigate how individual differences stimulate creativity. This study presents data supporting reliability (internal consistency) and validity (criterion and construct) of the instrument. Validity of the instrument is based on the content validity involving art and design experts. The 220 creative workers from several creative industry firms in Indonesia participated as samples in this research. Results of a factor analysis indicated a five factor solution of creative characteristics and behavior. Discussion of findings and the most important ways in which individuals differ in their enduring emotional, interpersonal, experiential, attitudinal, and motivational styles for stimulating creativity are presented.

The Spatial Pattern of Creative Industries in a Transformation Economy: the Case of Slovakia

This paper analyses the spatial pattern of creative industry firms in Slovakia and its evolution since the transformation from a planning to a market economy. We use micro-level data about creative industry firms that give the exact location of these firms in addition to other characteristics. This allows for the application of point pattern and of count data analyses. The empirical investigation shows that despite of the country’s heritage as a transition economy, creative industries in Slovakia behave very similarly to those in other countries and confirm the main hypotheses of the literature. The firms are strongly concentrated in the larger cities, particularly in Bratislava. This concentration differs between sector categories, with business services showing the most concentrated pattern. As far as the evolution of the pattern is concerned, new firms show a significantly less concentrated spatial pattern than the older firms. Nevertheless, the pattern is still concentrated in the larger cities.