Connected TV: Conceptualizing the Fit Between Convergence and Organizational Strategy Within a Contingency Theory Framework: The Case of Germany

Abstract

This chapter investigates whether contingency theory (CT) serves as a valid theoretical framework in order to test its applicability for explaining current processes of the television broadcasting industry’s convergence towards connected TV. Following CT, it assumes that an organization’s environment creates challenges or contingencies that managers need to address in part by adopting appropriate strategies. When managers find themselves in a situation that does not match these contingencies, their organization’s performance suffers, and they endeavor to change its structures to one with a better fit, in order to improve performance. The author finds that CT can fruitfully be applied to various questions surrounding the fundamental transformation of television broadcasting convergence. This argument is supported by evidencing the emerging “ecosystem” for connected TV services in Germany.