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    Behind film performance in China’s changing institutional context: the impact of signals

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    Wang_Asia_Pacific_Journal_of_Management.pdf (659.9Kb)
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    Publication date
    2017-03
    Author
    Elliott, C.
    Konara, P.
    Ling, H.
    Wang, Chengang
    Wei, Yingqi
    Keyword
    China; Signaling theory; Institutions; Film performance; Enhanced format films; Imported films
    Rights
    © The Author(s) 2017. This article is published with open access at Springerlink.com. This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
    Peer-Reviewed
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    Abstract
    Grounded in signaling theory, this paper investigates the signals reflecting product quality, innovativeness, reputation and cultural background which influence film performance, i.e. film survival (duration on cinema screen) and box office success, in China’s changing institutional context. This market has grown substantially and still possesses potential for further development. However, China’s unique institutional context presents challenges. By examining an expanded range of potential signals, two of which have not previously been examined in the literature, namely imported films and enhanced format film formats such as 3D and IMAX, we develop a conceptual framework and argue that signaling theory needs to be combined with institutional context. Similar to findings for film industries in other countries, we find quality and reputational signals including budget, star power, sequels, and online consumer reviews to be important in China. However, unique results are also revealed. Chinese consumers react to an innovativeness signal in that they are specifically attracted to enhanced format films. Film award nominations and prizes are insignificant reputational signals. Once other signals are taken into account, imported films on average do not perform as well as domestic films. We link these findings to China’s unique institutional setting and offer important implications for management, recognizing the challenges to film companies of competing in an increasingly globalized market. The paper is also of relevance to policymakers given their continued efforts in shaping the development of China’s film industry.
    URI
    http://hdl.handle.net/10454/11160
    Version
    Published version
    Citation
    Elliott C, Konara P, Ling H et al. Behind film performance in China’s changing institutional context: the impact of signals. Asia Pacific Journal of Management. 35(1): 63-95.
    Link to publisher’s version
    http://dx.doi.org/10.1007/s10490-016-9501-0
    Type
    Article
    Collections
    Management and Law Publications

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