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Why “Majors” Surge in the Post-Disruptive Recording Industry

PublicationArticle (with peer review)
Digitalization, Disruption, Post-ownership economy, Record companies, Recording industry, Streaming services

Abstract

Purpose: The recording industry has gone through a far-reaching disruption, but the major record companies from the past continue to surge. The following question is addressed: Why has disruption in the recording industry not followed the patterns of generic examples from other sectors? The purpose of this paper is to describe and explain why the digital disruption does not lead to the disruption of all types of companies.

Design/methodology/approach: This longitudinal study is based on a large set of secondary sources combined with in-depth interviews in Sweden’s recording industry.

Findings: Findings indicate that when customers turn to streaming, the major record companies’ direct control of which music the consumer is exposed to increases. This main finding contrasts statements that streaming services would facilitate peer-to-peer sharing activities between music customers and make record companies redundant. The major record companies have remained at a prosperous position due to the control of valuable content and marketing assets, as well as asymmetric interdependency among parties in the supply chain.

Research limitations/implications: The recording industry is different to many other sectors based on the latent value of catalogues, and the conclusions drawn from this paper should thereby not be taken for granted for other industries.

Practical/implications: Findings suggest that by “reading” the development of the industry and understanding what key resources create dependencies and revenue flows, managers would be better at tackling disruption.

Originality/value: The paper contributes to previous literature by describing how incumbent companies survive and even prosper post-disruption. It adds to the understanding of the digitalization of the recording industry and points at how dependencies help to understand disruption.

Kask, J. & Öberg, C. (2019). Why ”majors” surge in the post-disruptive recording industry. European Journal of Marketing, 53(3), 442-462. https://doi.org/10.1108/EJM-11-2017-0841

Based on content

Why “Majors” Surge in the Post-Disruptive Recording Industry
Artikel (med peer review)Publication
Kask, J. & Öberg, C.
Publication year

2019

Abstract

Purpose: The recording industry has gone through a far-reaching disruption, but the major record companies from the past continue to surge. The following question is addressed: Why has disruption in the recording industry not followed the patterns of generic examples from other sectors? The purpose of this paper is to describe and explain why the digital disruption does not lead to the disruption of all types of companies.

Design/methodology/approach: This longitudinal study is based on a large set of secondary sources combined with in-depth interviews in Sweden’s recording industry.

Findings: Findings indicate that when customers turn to streaming, the major record companies’ direct control of which music the consumer is exposed to increases. This main finding contrasts statements that streaming services would facilitate peer-to-peer sharing activities between music customers and make record companies redundant. The major record companies have remained at a prosperous position due to the control of valuable content and marketing assets, as well as asymmetric interdependency among parties in the supply chain.

Research limitations/implications: The recording industry is different to many other sectors based on the latent value of catalogues, and the conclusions drawn from this paper should thereby not be taken for granted for other industries.

Practical/implications: Findings suggest that by “reading” the development of the industry and understanding what key resources create dependencies and revenue flows, managers would be better at tackling disruption.

Originality/value: The paper contributes to previous literature by describing how incumbent companies survive and even prosper post-disruption. It adds to the understanding of the digitalization of the recording industry and points at how dependencies help to understand disruption.

The Effect of Marshallian and Jacobian Knowledge Spillovers on Jobs in the Solar, Wind and Energy Efficiency Sector
Article (with peer review)Publication
Aldieri, L., Grafström, J., & Vinci, C. P.
Publication year

2021

Published in

Energies, 14(14), 4269.

Abstract

The purpose of this paper is to establish if Marshallian and Jacobian knowledge spillovers affect job creation in the green energy sector. Whether these two effects exist is important for the number of jobs created in related fields and jobs pushed away in other sectors. In the analysis, the production efficiency, in terms of jobs and job spillovers, from inventions in solar, wind and energy efficiency, is explored through data envelopment analysis (DEA), based on the Malmquist productivity index, and tobit regression. A panel dataset of American and European firms over the period of 2002–2017 is used. The contribution to the literature is to show the role of the spillovers from the same technology sector (Marshallian externalities), and of the spillovers from more diversified activity (Jacobian externalities). Since previous empirical evidence concerning the innovation effects on the production efficiency is yet weak, the paper attempts to bridge this gap. The empirical findings suggest negative Marshallian externalities, while Jacobian externalities have no statistical impact on the job creation process. The findings are of strategic importance for governments who are developing industrial strategies for renewable energy.

Aldieri, L., Grafström, J., & Vinci, C. P. (2021). The Effect of Marshallian and Jacobian Knowledge Spillovers on Jobs in the Solar, Wind and Energy Efficiency Sector. Energies, 14(14), 4269.

An Anatomy of Failure – Wind Power Development in China
Article (with peer review)Publication
Grafström, J.
Publication year

2021

Abstract

China is currently the world’s largest installer of wind power. However, with twice the installed wind capacity compared to the United States in 2015, the Chinese produce less power. The question is: Why is this the case? This article shows that Chinese grid connectivity is low, Chinese firms have few international patents, and that export is low even though production capacity far exceeds domestic production needs. Using the tools of Austrian economics, China’s wind power development from 1980 to 2016 is documented and analyzed from three angles: (a) planning and knowledge problems, (b) unproductive entrepreneurship, and (c) bureaucracy and government policy. From a theoretical standpoint, both a planning problem and an entrepreneurial problem are evident where governmental policies create misallocation of resources and a hampering of technological development.

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