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Paper info: Evolution of Inter-organizational Relationships in Disruptive Markets: Marketing Capabilities in Music Industry

Title


Evolution of Inter-organizational Relationships in Disruptive Markets: Marketing Capabilities in Music Industry

Authors


Matti Jaakkola and Matti Santala

Place of Publication


The paper was published at the 24th IMP-conference in Uppsala, Sweden in 2008.

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Abstract


The co-evolutionary development of music business exemplifies how inter-organizational relationships have risen in importance. Relying on the capability perspective, our study shows that changing roles in music industry are creating new capability requirements for actors in the music network. Based on previous research and wide set of interviews, we propose that actors are increasingly organized as flexible, project based networks that are driven or subscribed by aggregators that take the risk to find commercial use for the actors. Further, we identify that these hubs require adequate resources, negotiation power and market access to able to fulfilltheir part in the network. As such, the actors are more inter-related than ever, and actors must develop market knowledge combined with deep professional capabilities to succeed. The results show that they also require a proactive and flexible approach in utilizing and developing their commercially relevant knowledge, vertical and horizontal capabilities need to be present and balanced between actors.