Probing into the Nature of Resources: Sustainable Advantages and Appropriable Rents in the U.S. Motion Picture Industry

Abstract

Most of the resource-based literature has concentrated on the sustainability of advantages rather than on the appropriability of rents that can be derived from these. In this paper, we focus on both of these issues by developing a classification of resources based on type of ownership and control. We use the U.S. motion picture industry to assess the degree of sustainable advantages and appropriable rents that can be generated by contracted, owned and embedded resources. We suggest that both sustainability and appropriability is likely to be lowest for contracted resources such as top-rated stars and directors. On the other hand, these are likely to be highest for embedded resources which typically reflect firm-specific knowledge and learning in the development and marketing of various types of film genres.

Citation

Shamsie, J. (2005), "Probing into the Nature of Resources: Sustainable Advantages and Appropriable Rents in the U.S. Motion Picture Industry", Sanchez, R. and Heene, A. (Ed.) Competence Perspectives on Resources, Stakeholders and Renewal (Advances in Applied Business Strategy, Vol. 9), Emerald Group Publishing Limited, Leeds, pp. 3-16. https://doi.org/10.1016/S0749-6826(05)09001-3