Abstract:

This study examines the role of collaborations between organizations in distinct market niches on innovation and performance. We propose that ‘hybrid’ collaborations—partnerships involving organizations in the center and periphery of the market—will show greater innovation and average market performance compared to independent strategies or collaborations with peers in the same market niche. However, hybrid collaborations benefit organizational partners in the market center and periphery in different ways and show more variability in performance . An analysis of the U.S. motion picture industry finds that co-productions between generalist and specialist production companies make films with more creative features, and earn higher box-office results, compared to producing alone or collaborating with a company of the same type. Hybrid co-productions also show more box-office variability; and, while generalist studios appear to integrate creative features more effectively from hybrid co-productions in their subsequent productions, specialists find more financial gains from using these features.