The Influence of Corporate Strategy for Multi-Channel Network on Firm Performance: Make, Buy, or Ally?

Seoyon Chang and Seongcheol Kim

22nd ITS Biennial Conference, Seoul 2018. Beyond the boundaries: Challenges for business, policy and society from International Telecommunications Society (ITS)

Abstract: The attention towards Multi-Channel Networks (MCNs) is notable in the media sector. Many firms adopt MCN business to capture the potential value created by new media trend. Consequently, the new investment, merger and acquisition (M&A), and in-house establishment trend is shaking up the media market. However, the short history of MCNs is yet reflected in the academia. Especially, there is limited literature on the industry-level analysis of MCNs. To fill the gap, this research attempts to understand how the firms are participating in the MCN industry across time, sectors, and regions. In other words, the firms' corporate strategies on the MCN adoption are analyzed. This paper classifies the type of strategic decision by Make, Buy, and Ally, then evaluates the influence of three strategic decisions on firm performance. It further investigates whether a first mover advantage exists in the MCN industry. To examine the firm performance, two accounting-based measures are employed: return on asset (ROA) and Tobin's Q. Research results indicate that Make leads better firm performance than Buy and Ally. In addition, the first mover advantage is confirmed in the MCN industry. Besides, some descriptive analyses of the MCN industry are presented in the study. As preliminary research examining the firms' corporate strategy on the adoption of MCN business, this paper provides meaningful implications for both practitioner and academia.

Keywords: Multi-Channel Network (MCN); Corporate strategy; Strategic alliance; Merger and acquisition (M&A); In-house establishment; First mover advantage; Firm performance; Return on assets (ROA); Tobin's Q (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-bec, nep-cse and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/190395/1/E4_2_Chang-and-Kim.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:itsb18:190395

Access Statistics for this paper

More papers in 22nd ITS Biennial Conference, Seoul 2018. Beyond the boundaries: Challenges for business, policy and society from International Telecommunications Society (ITS)
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics (econstor@zbw-workspace.eu).