The dilemmas experienced by managers in cultural industries are also to be found in a growing number of other industries where knowledge and creativity are key to sustaining competitive advantage. Firms that compete in cultural industries must deal with a combination of ambiguity and dynamism, both of which are intrinsic to goods that serve an aesthetic or expressive rather than a utilitarian purpose. Managers involved with the creation, production, marketing, and distribution of cultural goods must navigate tensions that arise from opposing imperatives that result from these industry characteristics. In this paper we outline five polarities that are shaping organizational practices in cultural industries. First, managers must reconcile expression of artistic values with the economics of mass entertainment. Second, they must seek novelty that differentiates their products without making them fundamentally different in nature from others in the same category. Third, they must analyse and address existing demand while at the same time using their imagination to extend and transform the market. Fourth, they must balance the advantages of vertically integrating diverse activities under one roof against the need to maintain creative vitality through flexible specialization. And finally, they must build creative systems to support and market cultural products but not allow the system to suppress individual inspiration, which is ultimately at the root of creating value in cultural industries.

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Organizations that go through rare and unusual events, whether they are costly or beneficial, face the challenge of interpreting and learning from these experiences. Although research suggests that organizations respond to this challenge in a variety of ways, we lack a framework for comparing and analyzing how organizational learning is affected by rare events. This paper develops such a framework. We begin by first outlining two views of rare events. The first view defines rare events as probability estimates, usually calculated from the frequency of the event. The second view defines rare events as opportunities for unique sensemaking based on the enacted salience of specific features of the rare events. We next use these definitions to explore how rare events trigger learning, and then examine the kind of learning processes that are triggered by rare events. We conclude with a discussion of promising areas of research on learning from rare events.

This article examines online gift giving in the form of opinion, information, and advice that individuals post on websites. Research has highlighted altruism and reciprocity as the key motives behind such gift giving. We argue that informational gift giving is also strongly driven by status and status seeking, and that status sentiments are more likely to sustain virtual communities. Using theories of status seeking and self-presentation, we investigate the ways in which consumers construct status in online consumer communities. The data reveal insights into the strategies behind constructing a digital status and the rise of online systems to promote celebrity status within online communities.

 This paper looks at the evolution of capabilities in the Hollywood movie industry in the aftermath of the transition from a studio era dominated by integrated hierarchies to a post-studio era dominated by flexible hub organizations supplied by networks of resource providers. Adopting a dynamic capabilities perspective we argue that two industry capabilities -mobilizing and transforming capabilities -play a crucial role in assembling and transforming resource bundles into feature films. We further argue that the transition to new organizational forms shifts the coevolutionary process, with practices and routines that make up mobilizing capabilities changing faster and becoming more important to box office success than practices and routines that make up transforming capabilities. We test our hypotheses using a sample of 400 films split between the studio and post-studio eras. The results support our hypotheses, pointing to the influence of centralized control versus dispersed access to resources. The strategy of integrated hierarchical organizations depends on ownership of resources that reduces incentives to develop mobilizing capabilities, and increases incentives to develop transforming capabilities. The advent of new organizational forms, by contrast, increases returns to new practices and routines that mobilize resources at the expense of returns on exploring practices and routines that make up transforming capabilities.