From technology to content: The shift in dominant logic in the early American film industry

The history of cultural industries is littered with successful incumbents who, failing to see or respond to dramatic shifts in their competitive landscapes, were replaced by newcomers. In essence, cultural industries showcase how one dominant logic-the means and practices for achieving desired goals (Bacharach, Bamberger, & Sonnenstuhl, 1996; Prahalad & Bettis, 1986)—is replaced by another dominant logic. For example, early technology firms, which dominated the film industry from 1895 to 1911, dismissed the importance of films containing stories and stars, only to be replaced by content firms that focused on stories and stars and attracted larger audiences (Jones, 2001). In publishing, firms shifted from a craft to business logic (Thornton, 2002), replacing CEOs and executives in doing so (Thornton & Ocasio, 1999). In the music industry, country music was ignored as a viable genre until new consumer tracking of products made explicit to decision makers its popularity with consumers (Anand & Peterson, 2000). In short, dominant players were unable to see the value of resources and alternative strate-gies that newer entrants brought into the industry and how these resources and strategies shifted the basis of competitive advantage.