The dilemmas experienced by managers in cultural industries are also to be found in a growing number of other industries where knowledge and creativity are key to sustaining competitive advantage. Tacit knowledge is more important in cultural industries, and talent, creativity and innovation are the resources that are crucial to success. Because these are amorphous resource, most of the firms in cultural industries is therefore oriented towards finding, developing, and maintaining control over these resources.
This paper aims to discuss various survival factors regarding cultural industries firms in Busan through the Resource-Based View. Specially, we examine the impact of finn-level resources and capabilities along with environmental changes to the firm age at failure. Relying on the resource-based view as our research foundation, we focused on human resources, technology resources, and external network resource as detenninant.
For the purpose, this research examined the survival or failure of 22 Busan culture contents-based small and medium size ventures according to growth stage. Through this analysis this research found that several significant differences between management challenges and resource as buffering mechanism in survival across the growth stages. These results means that different management challenges and resource for risk management are important age-dependent risk across the growth stage.
Failure among young firms is attributed to deficiencies in managerial knowledge, technical resources, external network. Especially, this paper suggests that competitiveness in exports is an important factor that enables new cultural venture firms to survive longer in competitive environments. Failure among older finns, on the other hand, may be attributable to an inability to adapt to environmental changes.
These findings are consistent with the expectations of the resource-based view, and complementary to age-dependence studies. The results also reinforce the importance of resource and capability development by young venture firms as well as confirming the hazards of inertia among more established venture finns.