Abstract
A system dynamics (SD) simulation model, of the interactions among business enterprises that compete in the entertainment industry, integrates ideas from organizational and strategy design, and new-technology adoption. The model describes exactly how the new-technology’s diffusion process of hardware and software clusters alters syndication-firms’ strategic postures, and TV networks’ investment opportunities in infrastructure and production capacity. Building on transaction cost economics (TCE), the model contributes to the merger and acquisition (M&A) literature and provides insight into the emergence of corporate-governance forms.
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