국지적 탐색과 원거리 탐색 : 한국 영화사의 신규 니치 탐색거리, 1966~2004

This study examines the factors that may drive firms to implement distant search beyond the local search of adjacent areas in their exploration of new market segments or product markets through a longitudinal study of the Korean film industry, 1966~2004. Although the crucial importance of radical innovation based on distant search is frequently emphasized in the dynamically changing recent business environment, much of the existing literatures, such as organizational learning, organizational ecology, and evolutionary economics, have been skeptical about the actual possibility of distant search by business firms. Those existing literatures suggest that the actual search patterns of firms are highly biased toward the exploitative local search of adjacent areas, since local search has various short-term advantages over distant search. For instance, because local search is made through the exploitation or improvement of existing resources and capabilities that the focal firm already possesses, it is less risky, less costly, and produces quicker return, than distant search. On the other hand, distant search which often suffers from causal ambiguity is subject to high uncertainty and inefficiency. Moreover, the realization of returns from distant search takes longer time than those from local search. As a consequence, the combined effect of the advantages of local search and the risks of distant search results in strong bias toward local search, which James G. March refers to as ‘learning myopia’. Nevertheless, the recent literatures of both strategic management and organization theory have emphasized the crucial importance of distant search under highly unstable and uncertain environments, despite the advantages of local search and the risks of distant search. That is, because the sustained competitive advantage and survival of a firm in the dynamically changing 21st century environment require the firm of the capability to recombine constantly its resource endowments through distant search beyond local search within adjacent environmental spaces. In this respect, the current paper examines the internal and external factors that may pressure or enable the firm to search radically different new niches, beyond the path-dependent local search of adjacent areas. For this purpose, the current study first examines the effect of firm size which is one of the most crucial organizational characteristics on search distance. Since larger organizations are more strongly influenced by structural inertia and bureaucratic rigidity than smaller ones, we predict that large firms tend to concentrate on reproducing and continuously improving existing routines and formulas based on local search, rather than boldly exploring fundamentally different new niches through distant search. Thus, we suggest ‘hypothesis 1’ that predicts a negative relationship between organizational size and search distance. Second, the current study also inquires the effect of competition on search distance. We argue that strong competition in the focal firm’s existing niche is likely to push the firm to explore remote new niches through distant search for the purpose of risk avoidance, since adjacent areas would have similar competitive conditions with those of the focal firm’s existing niche. The complete avoidance of risks stemming from intensifying competition in the focal firm’s existing niche is possible only through the distant search of remote new areas. Therefore, we suggest ‘hypothesis 2’ that predicts a positive relationship between search distance and the density of the focal firm’s existing niche which indicates the strength of competition. Third, the current study investigates the relationship between the focal firm’s linkage to external fields and search distance. When a firm has ties with external fields outside its own organizational field, it may enjoy various advantages in the exploration of distant areas. For instance, connectivity with external fields may provide information about new innovations unknown in the existing field or resources and capabilities needed for radical new attempts, but unavailable in the existing field. In this regard, we suggest ‘hypothesis 3’ that predicts a positive relationship between the focal firm’s linkages to external fields and search distance. According to the results of our longitudinal analysis of all new niche exploration events by Korean film makers, 1966-2004, all three hypotheses were strongly supported. That is, the distance of new niche exploration turned out to be affected negatively by firm size, and positively by competitive pressure in the existing niche and linkages to external fields. The findings of the current study are expected to contribute to future studies on search behavior, organizational change, and cultural industries. General implications for researchers and practitioners are discussed.