The Industrial Organisation of the Dance Industry in the Netherlands: A Transaction Cost Perspective on Hybrid Forms of Organisation

Tinbergen Institute Discussion Paper No. 14-095/VI

35 Pages Posted: 26 Jul 2014

See all articles by Frank A. G. den Butter

Frank A. G. den Butter

Vrije Universiteit Amsterdam - Economics

Jelle Joustra

VU University Amsterdam

Date Written: June 30, 2014

Abstract

The organization of Electronic Dance Music (EDM) events has become a major export product in the Netherlands. In order to respond quickly to the new trends and needs, innovative forms of cooperation between producers are to be set up for the organization of exciting new events. A case study on how these EDM events are actually organised in the Netherlands shows that the best way to do it is through hybrid forms of organisation, which combine horizontal forms of organisation through the market and vertical forms through the hierarchy. As EDM events are characterised by much asset specificity, the perspective of transaction cost economics indicates why this industry relies on hybrid forms of organisation. Trust between the collaborating partners, intrinsic motivation to be professional in the design and creation of new, ground-breaking music sensations and an extensiv e use of social media play a key role in lowering the transaction costs in the dance industry.

Keywords: Industrial organization, coordination costs, transaction cost economics, resource based view, cooperation in hybrid organizations, Electronic Dance Music (EDM) events, trust, use of social media

JEL Classification: D23, D85, E23, F60, L23, L24, L82, O31, P13

Suggested Citation

den Butter, Frank A. G. and Joustra, Jelle, The Industrial Organisation of the Dance Industry in the Netherlands: A Transaction Cost Perspective on Hybrid Forms of Organisation (June 30, 2014). Tinbergen Institute Discussion Paper No. 14-095/VI, Available at SSRN: https://ssrn.com/abstract=2471475 or http://dx.doi.org/10.2139/ssrn.2471475

Frank A. G. Den Butter (Contact Author)

Vrije Universiteit Amsterdam - Economics ( email )

Boelelaan 1105
NL 1081 HV Amsterdam
Netherlands
+31 20 444 6030 (Phone)

Jelle Joustra

VU University Amsterdam ( email )

De Boelelaan 1105
Amsterdam, ND North Holland 1081 HV
Netherlands

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