Dynamic capabilities and superior firm performance in the UK media industry

Abstract

The past decade has seen a transformation in the way television broadcasters have managed their businesses. This paper examines the theory of 'dynamic capabilities' in relation to two UK television broadcasters, BskyB and ITV, and their attempts to transform themselves into multi-product, multi-platform media companies. Using Comparative Financial Analysis and Content Analysis, this paper demonstrates an original contribution to knowledge in two areas. Firstly, it provides evidence of 'how' media organisations change their valuable resources over time, and secondly, it provides a means to 'measure' the dynamic capabilities corporate financial performance effects over the long-term.