Uncertainty management strategies and the export performance of cultural goods: The case of the Korean movie industry from 2000 to 2004

Abstract

Uncertainty, which is an inherent characteristic of cultural industry in the sense that no one can accurately predict the success or failure of cultural goods, increases greatly when organizations export cultural goods overseas. Then, when exporting cultural goods, how can organizations manage the risks of uncertainty to improve their export performance? Focusing on the case of the Korean movie industry, this study shows that strategies such as market signaling, generalist strategy and vertical integration can contribute to improving the export performance of movies, and thereby help organizations effectively manage the risks of uncertainty arising from the export of movies. For the analysis, this study uses the data of all Korean movies released from 2000 to 2004, and analyzes them on the basis of negative binominal regression. The findings of this study help us understand what strategies are needed for organizations in cultural industry to manage the risks of uncertainty arising from the export of cultural goods.