Entrepreneurial firm growth in creative industries: fitting in … and standing out!

Abstract

Firm growth in creative industries, which are characterized by craftmanship, imagination, artistic quality and innovativeness, is a conundrum. By means of a matched pair case study design of market leaders and followers in seven creative industries in the Netherlands, the present paper seeks to tackle this conundrum. It suggests that for entrepreneurial firms to develop (instead of stagnating or demising), founders need to fit in, or understand the value creation and conversion processes in vigor within their industry. For firms to grow by means of an expansion of their markets, founders need to stand out, or create resource advantages vis a vis other firms in the industry, which could lie in an internationalization or a digitalization vantage. Not despite of, but because of their quality focus, which accrues to reputation advantages and impact, creative firms succeed in growing. Lessons are drawn from how and why firms in creative industries develop and grow. These may contribute to firm growth assessment practices and process theories.

Keywords:

• Firm growth
• creative industries
• impact
• values
• strategy

Acknowledgments

The authors acknowledge the interviewees and the contacts at the trade associations and the Dutch Ministry of Economic Affairs and Climate for sharing time and insight.

Disclosure statement

No potential competing interest was reported by the authors.

Notes

1  The expressions ‘firms in creative industries’ and ‘creative firms’ are used interchangeably, while the latter formulation may refer to firms in other industries as well. In a similar vein, the notions ‘firm founders’ and ‘entrepreneurs’ are used when referring to the key individual responsible for the firm’s decisive actions and strategies.

2 The case selection was facilitated by the help of the Dutch Ministry of Economic Affairs and Climate, and the trade associations ModInt, BNO, The PopCoalitie, the DDA, BNA, VEA and DGA.

3 Scott (2012) relies on Pierre Bourdieu (1986, 1993) to interpret cultural entrepreneurs’ (i.e., music producers) general economy of practices, by an examination of how Bourdieu’s alternative forms of capital are available resources to be mobilized and converted into building a career.

4  According to Wijnberg’s selection theory (1995, 2004), market, peer or expert recognition can be the goal of a firm and form the basis for a firm’s performance.