742
“Proposition 4: The greater the homogeneity of a macroculture’s beliefs about boundaries, the less likely are any top managers to react to threats or opportunities from organizations outside these boundaries.”

743
“Proposition 5: The greater the homogeneity of a macroculture’s beliefs about reputations, the less likely are top managers to initiate rivalry-creating changes.”

“Proposition 6: The greater the homogeneity of a macroculture’s beliefs about strategic issues, (a) the less likely are top managers to notice and attend to information about new strategic issues and (b) the less likely they are to initiate change in reaction to these issues

744
“Proposition 7: The greater the homogeneity of a macroculture’s beliefs about boundaries, the lower the rate of introduction of innovations invented by organizations outside the boundaries.”

745
“Proposition 10: The greater the homogeneity of a macroculture’s beliefs about strategic issues, the higher the rate of competence-enhancing innovation and the lower the rate of competence-destroying innovation.”

“Proposition 11: The greater the homogeneity of a macroculture’s beliefs about strategic issues, the more rapid and complete the diffusion of competence-enhancing innovations and the less rapid and complete the diffusion of competence-destroying innovations.”
-> Hollywood managed to introduce 3D cinemas all over the world in a fairly short time (once they decided on a standard, which took forever).

746
“Proposition 12: The greater the homogeneity of a macroculture’s beliefs about boundaries, the lower the variety in member organizations’ competitive strategies.”

“Proposition 13: The greater the homogeneity of a macroculture’s beliefs about reputations, the more stable the strategic group structure of the collectivity.”

“Proposition 14: The greater the homogeneity of a macroculture’s beliefs about strategic issues, the lower the variety in member organizations competitive strategies and the fewer the number of strategic groups.”

750
“organizations bound by homogeneous macrocultures may underperform for a number of reasons already advanced in our propositions: their inability to recognize new types of competitors or symbionts, notice new strategic issues, or initiate change.”

“Greater macrocultural homogeneity, in turn, may cause (a) severance of value-added network ties with organizations on the periphery of these macrocultures and (b) proliferation of value-added ties with organizations within the macroculture. Repeated cycles of such a feedback loop might lead to increasingly dense value-added networks and increasingly homogeneous macrocultures. A spiraling process of this sort would leave organizations within its grip increasingly vulnerable to exogenous changes in the structure of value-added networks and, thus, limit collective adaptation. It may well illuminate the deteriorating position of the United States in industries like auto and steel throughout the 1970s and 1980s.”

259
Darwinism is “a broad theoretical framework for the analysis of the evolution of all open, complex systems, including socio-economic systems.”

278
“In short, Darwinism provides a compelling ontology, it is a universal metatheory in which specific theories must be nested, and it is a rich but optional source of analogy. If the arguments here concerning ontology and Universal Darwinism are correct, then on some of these questions the social scientist has no option but to be Darwinian. However, Darwinism does not provide complete explanations of socio-economic phenomena. Something more is required. The social cannot be reduced to the biological. Darwinism may be universal but economics should not be abandoned to biology.“

Economists can’t decide whether file sharing has a negative influence on the music industry or artists or not.

4
Definition-entrepreneurship:
“Entrepreneurship is an activity that involves the discovery, evaluation and exploitation of opportunities to introduce new goods and services, ways of organizing, markets, processes, and raw materials through organizing efforts that previously had not existed (Venkataraman, 1997; Shane and Venkataraman, 2000).”

8
“the entrepreneurial process requires some form of innovation. By innovation, I do not mean that all entrepreneurial efforts require the grand Schumpeterian (1934) innovations that result in new combinations that spur creative destruction. [...] the entrepreneurial process can involve a type of innovation that is much milder, such as placing a restaurant on a different corner of an intersection from existing restaurants, or using different recipes or employees in a new restaurant in the same location as an old one. [for example Venkataraman, 1997] pointed out that this milder form of innovation is often associated with Kirznerian (1997), rather than Schumpeterian, entrepreneurial opportunities.
However, even Kirznerian opportunities involve innovation. By definition, entrepreneurship cannot involve the perfect imitation of what has been done before. The simple fact that it involves the recombination of resources into a new form according to the judgment of the entrepreneur means that entrepreneurship involves some innovative activity.”

10
“The conceptual framework that underlies this book is quite straightforward. Because the economy operates in a continual state of disequilibrium and change, situations arise in which people can transform resources into a form (new goods and services, new ways of organizing, new methods of production, new markets or new materials) that they believe will have greater value than their cost to create (Venkataraman, 1997). The entrepreneurial process begins with the perception of the existence of opportunities, or situations in which resources can be recombined at a potential profit. Alert individuals, called entrepreneurs, discover these opportunities, and develop ideas for how to pursue them, including the development of a product or service that will be provided to customers. These individuals then obtain resources, design organizations or other modes of opportunity exploitation, and develop strategies to exploit the opportunities.”

414f
Definition-public good
Definition-club good
Definition-private good

496
Definition-horizontal merger:
“A horizontal merger is one in which both firms are in the same product market. A vertical merger is one in which a firm acquires either a supplier or a customer firm. If there is no horizontal or vertical relation between two merging firms, then it is defined as a conglomerate merger. In practice, many mergers between diversified companies include elements of two or even all three of these classifications.”

1628
Definition-vertical integration:
“Vertical integration is a situation in which a single firm owns and controls portions of successive stages of production. The extent of integration, through its effect on firms’ costs and managerial incentives, is an important determinant of firms’ profitability and overall industry performance.”

1680
Definition-vertical integration:
“A vertically integrated chain represents a series of make or buy decisions made by firms, beginning with raw materials and manufacturing (backward integration) and moving forward to distribution and marketing (forward integration). To this end, a firm may build or buy a wholly owned subsidiary, secure a minority shareholding or join in a formal or informal strategic alliance to provide a specific segment of its value chain anywhere in the world where costs are lower and access to consumer markets are closer.”

vii
Definition-creative-industries:
“The organization of “creative industries,’ in which the product or service contains a substantial element of artistic or creative endeavor, has received surprisingly little attention from economists, with a sole exception: the question whether public subsidy is warranted for the performing arts.”

1
Definition-creative-industries:
“One has been largely missed, however – the “creative” industries supplying goods and services that we broadly associate with cultural, artistic, or simply entertainment value. They include book and magazine publishing, the visual arts (painting, sculpture), the performing arts (theatre, opera, concerts, dance), sound recordings, cinema and TV films, even fashion and toys and games.”

xix
Definition-entertainment:
“the act of diverting, amusing, or causing someone’s time to pass agreeably; something that diverts, amuses, or occupies the attention agreeably.” From Webster’s Third New Unabridged International Dictionary, 1967.

Definition-entertainment:
“Entertainment – the cause – is thus obversely defined through its effect: a satisfied and happy psychological state. Yet, somehow, it matters not whether the effect is achieved through active or passive means. Playing the piano can be just as pleasurable as playing the stereo.”

Definition-entertainment:
“Entertainment indeed means so many different things to so many people that a manageable analysis requires sharper boundaries to be drawn. Such boundaries are here established by classifying entertainment activities into industry segments, that is, enterprises or organizations of significant size that have similar technological structures of production and that produce or supply goods, services, or sources of income that are substitutable.”
He defines entertainment from an industrial perspective.

4
Definition-entertainment:
“The concept of entertainment is thus subordinate to that of recreation: It is more specifically defined through its direct and primarily psychological and emotional effects.”

13
“As this post-war generation matures past its years of family formation and into years of peak earnings power and then retirement, spending may be naturally expected to collectively shift to areas such as casinos, cultural events, and tourism and travel, and away from areas that are usually of the greatest interest to people in their teens or early twenties.”

494
“[There] are several frequently observed industry characteristics.”

“Many are called, but few are chosen: Perhaps the most noticeable tendency of entertainment businesses is that in the steady-state growth phase (i.e., after a segment has attained a size at which long-run domination by several large companies has been established), profits from a very few highly popular products are generally required to offset losses from many mediocrities.”

“Marketing expenditures per unit are proportionally large: [...]“

“Ancillary markets provide disproportionately large returns: [...]“

494f
“Capital costs are relatively high; oligopolist tendencies are prevalent: As happens in many other industries, once beyond the very early stages of a segment’s development, the cost of capital and the amount of it required for operations becomes a formidable barrier to entry by new competitors. Most entertainment industry segments thus come to be ruled by large companies with relatively easy access to large pools of capital. Such oligopolistic tendencies can, for example, be seen in distribution of recorded music and movies, and in the gaming, theme park, cable, video game, and broadcasting industries.”

495
“Public-good characteristics are often present: With pure public goods, the cost of production is independent of the number of consumers; that is, consumption by one person does not reduce the amount available for consumption by another. Although delivered to consumers in the form of private goods, many entertainment products and services, including movies, records, television programs, and sports contests, have public-good characteristics.”

“Many products and services are not standardized (which is good for entrepreneurs and bad for relative-productivity gains): There are four important consequences of such nonstandardization:

1. Despite the oligopolistic framework, there is considerable freedom for the entrepreneurial spirit to thrive. That is, operas, plays, movies, ballets, songs, and video games are uniquely produced and are normally originated by individuals working alone or in small groups and not by giant corporate committees. One can become rich and famous as a direct result of one’s own creative efforts.
2. The entrepreneurial spirit and thus the importance of the individual to the productive process is accommodated by means of widely varying, and uniquely tailored, financing arrangements. This is especially evident in movies, recorded music, and sports. Option contracts are central.
3. Where the production is the product itself (e.g., live performance of music or dance), it is difficult to enhance productivity. To some extent, this aspect also appears in areas as diverse as filmmaking, sports, and casino gaming.
4. Under the aforementioned conditions, the costs of creating and marketing entertainment products such as movies and television programs tend to rise at above-average rates.

”

“Technological advances provide the saving grace: Fortunately, ongoing technological development makes it ever easier and less expensive to manufacture, distribute, and receive entertainment products and services.”

“New entertainment media tend not to render older ones extinct: New ways to deliver entertainment products and services are constantly evolving. Although introduction of new entertainment media may diminish the importance of existing forms, the older forms are rarely rendered extinct.”
-> Thesis

496
“Entertainment products and services have universal appeal: Demand for entertainment cuts across all cultural and national boundaries”

501
“Yet the industries are already quite mature in the United States, and expansion will increasingly be linked to the rate of growth of middle-class populations outside North America.”

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