Sources of Dependence and Strategies to Innovate: Evidence from Video Game SMEs

Romain Gandia () and Elodie Gardet ()
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Romain Gandia: IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc
Elodie Gardet: IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc

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Abstract: Recent studies call for reconsideration of the predictions of resource dependence theory, in light of contemporary industrial and economic environments. This study accordingly investigates the influence of dependence on the strategic choice to innovate by focusing on a rarely studied topic, namely, the sources of dependence. In studying small and medium-sized video game enterprises, this article provides empirical validation of dependence phenomena. These companies have limited resources, which inevitably creates dependence, exacerbated in innovative contexts because of the prevalence of negative effects, such as opportunism, abuse of power, limited innovation, or inequitable distributions of economic value. To deal with these negative effects, some enterprises use cooperation or integration strategies to try to minimize their dependence. The strategic choice then might be conditioned. The results of a comparative and qualitative study of five video game developers show that a lack of resources and skills is the primary source of dependence. In addition, a hierarchy of sources of dependence seems to guide the strategic choices of developers to innovate.

Date: 2019-07
New Economics Papers: this item is included in nep-ent and nep-sbm
Note: View the original document on HAL open archive server: https://univ-smb.hal.science/hal-01696250v1
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Published in Journal of Small Business Management, 2019, 57 (3), pp.1136-1156. ⟨10.1111/jsbm.12339⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01696250

DOI: 10.1111/jsbm.12339

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