Vertical Collaboration and the Performance of Knowledge-Based Products: Evidence from the Korean TV Drama Industry

41 Pages Posted: 22 Jun 2018 Last revised: 10 Apr 2019

See all articles by Yongwook Paik

Yongwook Paik

KAIST College of Business, Korea Advanced Institute of Science and Technology (KAIST)

Yujin Kim

ShanghaiTech University - School of Entrepreneurship and Management

Evan Rawley

University of Minnesota - Twin Cities - Carlson School of Management

Date Written: June 5, 2018

Abstract

This paper provides theory and evidence about how vertical collaboration between an integrated firm and a focused supplier enhances the market performance of knowledge-based products. We posit that, when downstream commercialization is concentrated relative to upstream product development, products developed via vertical collaboration will exhibit better market performance than products developed autonomously by an integrated firm. Using data from the Korean TV drama industry, we find qualitative and quantitative evidence that collaborative development between network companies and independent production companies improves the viewership ratings of TV dramas. By elucidating a novel connection between corporate strategy and performance, the paper advances our understanding of how organization influences product performance.

Keywords: vertical collaboration, governance mode, knowledge-based products, inter-firm relationship, creative industries

JEL Classification: D2, L14, L2, M2, O30

Suggested Citation

Paik, Yongwook and Kim, Yujin and Rawley, Evan, Vertical Collaboration and the Performance of Knowledge-Based Products: Evidence from the Korean TV Drama Industry (June 5, 2018). Columbia Business School Research Paper No. 18-53, Available at SSRN: https://ssrn.com/abstract=3192188 or http://dx.doi.org/10.2139/ssrn.3192188

Yongwook Paik (Contact Author)

KAIST College of Business, Korea Advanced Institute of Science and Technology (KAIST) ( email )

85 Hoegiro, Supex Building Room 482
Seoul, 02455
Korea, Republic of (South Korea)

Yujin Kim

ShanghaiTech University - School of Entrepreneurship and Management ( email )

100 Haike Rd
Pudong Xinqu, Shanghai
China

Evan Rawley

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

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