This Case is about INNOVATION, RISK MANAGEMENT
PUBLICATION DATE: November 01, 2007 PRODUCT #: CMR388-PDF-ENGOrganizational Dimensions of Creativity Motion Picture Production Case Solution
Internal or contractual generation of products that are exceptionally creative demands supervisors to evaluate unclear productivity and both unobservable attempt, resulting in deficiency of cost control. Likewise, in procuring products that are creative in the market, managers confront the inevitable winner’s curse danger. Since this threat is, to a large extent, independent of the creative nature of the merchandise, the higher the content that is creative, the higher the relative risks related to contractual or internal generation. Therefore, internal/contractual generation of creative goods will often be less common the higher the content that is creative connected with its creation. The development of the U.S. film industry in the mid-20th century supplies examples and consequences for managing exceptionally creative actions and enterprises.