Abstract

This paper studies the interaction between vertical integration and platform ecosystem, two co-existing intra-organizational forms. Specifically, the work investigates the moderating role of platform strategies on the relationship between vertical integration and performance. The study analyzes data from 1922 cinemas of China’s film industry that is undergoing business transformation as a result of the emergence of online film platforms. The results suggest that self-established platforms can enhance the impact of vertical integration on cinema performance. The findings also reveal that vertical integration and third-party platforms may be substitutable for a cinema. Finally, directions for future research is discussed.

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