Professional Documents
Culture Documents
Creative Industry Journal
Creative Industry Journal
Creative Industry Journal
DOI: 10.1177/0018726709335542
Volume 62(7): 939–962
© The Author(s), 2009
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The ‘creative industries’ is the collective noun for ‘those activities which have
their origin in individual creativity, skill and talent and which have a poten-
tial for wealth and job creation through the generation and exploitation of
intellectual property’, namely: advertising, architecture, art and antiques,
crafts, design, designer fashion, film, interactive leisure software, music,
performing arts, publishing, software design, TV and radio (Department for
Culture, Media and Sport [DCMS], 1998). Notwithstanding the DCMS
939
940 Human Relations 62(7)
be predicted before production costs are incurred. Jeffcutt and Pratt (2002)
refer to them as being ‘chart businesses’. Sunk investment costs (e.g. in films,
books, music and computer games) are only potentially realized in the few
weeks after products are released and are highly dependent on publicity and
reviews for sales. For others, the emphasis on difference is erroneous, either
in that all industries have a creative core and, in the ‘new economy’, all goods
have an expressive element to which consumers respond (Brown, 1995;
Miller, 2001), or, that there is an undue emphasis on the ‘creative’ aspect of
creative industries at the expense of its ‘humdrum’, or standardized elements
of production (McRobbie, 2007; Ross, 2003). Uncertainty is seen as a
characteristic of all economic production, and the ‘inherent unknowability’
identified by Caves (2000) characteristic of business start ups, or the progress
from micro- and small-sized enterprises in emerging markets (Thompson
et al., 2001; Warhurst, forthcoming).
As economic production relies on certainty, or at least efforts to reduce
unpredictability and ‘manage risk’, creative industries act to reduce market
uncertainty through a variety of mechanisms. Media companies have
developed specialist divisions specifically to nurture fresh talent or develop
innovative products as lead indicators of mass market trends. Hollywood’s
studio system relied on this strategy to maintain links with avant-garde
cinema, while music conglomerates also test new genres and retain respected
artists, even if they enjoy only limited sales, to add artistic credibility to the
label (Gander et al., 2007; Lampel & Shamsie, 2003; Miller & Shamsie,
1999; Negus, 1999). By the mid-1970s music conglomerates had refined this,
releasing a broad range of product as test-marketing to identify the few
singles, albums or artists to receive sustained corporate promotion (Maxwell,
1991). Globalization of media conglomerates from the late-1970s paralleled
the inter-penetration of consumer electronics and entertainment corporations
through strategic alliances, mergers and acquisitions. Ownership of film and
television libraries and deep back music catalogues were as vital to global
electronic corporations as to entertainment conglomerates. Such strategies
led to characteristic bifurcated markets where dominant conglomerates own
publishing and distribution rights, and micro-organizations, with short life
cycles due to intense competition, carry out ‘R&D’ (see Hesmondhalgh,
2007). Despite the importance of these industries in financial and cultural
terms, there are no comprehensive business histories, far less a sustained
historiography of the creative industries in general. The creative industries
await their Alfred Chandler.
Uncertainty is also handled (and created) through the labour market,
which displays all the characteristics of secondary labour markets, but even
here, its nature is distinct (Menger, 1999). Employment and unemployment
942 Human Relations 62(7)
Caves (2000: 5) defines the motley crew as the ‘diverse skilled and special-
ized workers, each bringing personal tastes with regard to the quality or
configuration of the product’. This is in danger of buttressing a division
between ‘creatives’ and the ‘humdrum’. Creative production, however,
depends on a vast array of personnel: creative artists (artists, musicians,
actors, writers); brokers acting on their behalf (agents, managers,
promoters); technical craft workers (sound engineers, camera operators);
producers (publishers, studios, record companies); owners and executives;
distributors and media outlets (broadcasters). A creative/humdrum division
has thus been criticized as too simplistic (Donald et al., forthcoming;
Warhurst, forthcoming); failing to recognize the material manifestation of
Townley et al. Managing in the creative industries 943
Intellectual capital
Why do we suggest this framework? Let’s take as our starting point intel-
lectual capital, by which we mean the ideas that form the basis of any creative
endeavour. Although not using such terms, intellectual capital is that which
is identified in the DCMS definition of the creative industries. The attempt
to identify creativity and the factors that nurture it are the foci of a range of
Townley et al. Managing in the creative industries 945
Social capital
Social capital has a variety of meanings (Adler & Kwon, 2002). Bourdieu
uses it to indicate the actual and potential resources that can be mobilized
through membership of social networks of actors and organizations (Anheier
et al., 1995; Bourdieu, 1986b; Bourdieu & Wacquant, 1992). Social capital’s
role in the development of intellectual capital has been used to illustrate how
firms are better than markets in creating and sharing intellectual capital
(Nahapiet & Ghoshal, 1998). Barnatt and Starkey’s (1994) analysis of the
moves to flexible specialization in the UK TV industry and its impacts on
labour force training and product quality reinforce this. Similar issues have
been identified in the US film industry (Christopherson & Storper, 1989).
Perretti and Negro (2007) also illustrate how Hollywood benefitted from the
combination of newcomers and old timers in film genre innovation. Both film
and TV, however, have undergone major transformations from hierarchy to
market, from large-scale bureaucracies to a multitude of micro-organizations
and SMEs reliant on networks for commercial success.
The importance of networks within the creative industries is well docu-
mented. Haunschild (2003) illustrates the importance of social capital and
social networks in ensemble production in German theatre. Skilton (2008)
notes how breaking into elite Hollywood projects is aided by familiarity
(through family or work relationships) and similarity (in individual charac-
teristics). Uzzi’s (1997) work in fashion production points to the benefits of
local networks for flexible production required by this industry. Uzzi and
Spiro’s (2005) analysis of Broadway shows how the financial and artistic
performance of musicals is enhanced by the connectivity of a ‘small world’
network, the enlargement of which has serious repercussions for overall
success. The value of the embedded nature of organizations for innovative
production is identified by Hargadon and Sutton’s (1997) analysis of the
design agency IDEO, where networks and the embedded knowledge of differ-
ent industries support its role as technological broker. Delmestri et al. (2005)
948 Human Relations 62(7)
The profound uncertainty about personal reputation (Blair, 2001), with the
recognition that this is a vital currency in project-based industries, is a central
feature of occupational cultures in the creative industries. Reputation cannot
be banked but exists only insofar as it is transacted. Conversely, latent
organization requires deliberate choices by individuals about short and
medium-term economic returns to certain behaviours, particularly
professional competence and good citizenship. It is predicated on an
appraisal of current and future projects and their value in economic and
reputational terms.
The creative industries are far from unique in their reliance on tempor-
ary organizations to combine flexibility with the coordination of a complex
division of labour, as construction and shipbuilding testify. With the frag-
mentation of TV and film production, creative labour no longer has an
organizational buffer against the inherent risk and uncertainty of project-
based employment. Rather, risk has been absorbed by individuals as the
necessary corollary, and cost, of their occupation. Indeed, the passionate
endorsement of high employment risk is a defining characteristic of the
identity of creative workers.
Bourdieu identified the term cultural capital in the early 1960s when working
in the sociology of education (Bourdieu & Passeron, 1997). His interest lay
in the role of culture in social relations of domination and its reproduction
through these means. Bourdieu identifies structures of domination in all areas
of life, preferences for cultural and creative products, music, food, sports, etc.
Often dismissed as ‘superficial’, preferences or tastes are inextricably inter-
twined with material positions and class. Homologies of life style choices,
between art, music, etc., form the foundation of distinction and stratification
(Bourdieu, 1986b). ‘Taste’ becomes a mark of distinction (Zukin & Maguire,
2004).1 The consumption (in its broadest sense) of creative products is a
process of representation. As important symbolic goods, they engage the
individual in acts of communication, instantiating social relationships. An
appreciation of creative products involves much more than the direct and
immediate apprehension of the work. It depends on ‘cultural competence’,
the ability ‘to decode that which is encoded’, ‘. . . situat[ing] the work of art
in relation to the universe of artistic possibilities of which it is a part’
(Bourdieu, 1993: 22). The ability to do so depends on one’s cultural capital.
The latter has three forms: the long standing dispositions and habits derived
from socialization; the accumulation of valued cultural objects; and the
education and knowledge that is acquired in pursuit of functioning within a
952 Human Relations 62(7)
dance in Puerto Rican music and identity, and in Nuyorican identity. The
Nuyoricans, New Yorkers of Puerto Rican descent, do not adopt other factors
such as speaking Spanish, but have an affinity with Salsa as part of who they
are and what they do. College traces Salsa to the 19th-century dance music
‘danza’ and shows how, although these forms are adopted and integrated
into Puerto Rican musicians’ identities, they are non-indigenous and are
derived from abroad, Cuba in particular. It is not that there is something ‘in-
authentic’ about Puerto Rican music, but rather musicians have adopted styles
and adapted their meaning and become identified with the style. Identity is
formed through dialogue with the outside and developed by dialogue within
the in-group, and is sustained by and sustains the cultural and symbolic capital
that marks this.
This Constructionist perspective does not make the strong, stable
categorizations. Creativity can increase and decline over time, in different
circumstances and people can be more or less creative in certain settings. It
is thus neither possible nor appropriate to operate with mutually exclusive
identity categories such as ‘creatives’, ‘managers’ and ‘audience’. The issue
is to understand the roles and identities that people take on, and the
behaviours/performances that they produce. In this more processual perspec-
tive the question is not ‘what should managers do to manage creatives?’ (i.e.
how can control be exerted?). Rather, the focus is how different actors can
take on productive action in facilitating and producing creative outcomes.
Productive actions include organizing, creating, innovating, reproducing and
extracting value or reward. None of these activities is the sole preserve of a
category of actors such as ‘generators’, ‘interpretors’ or ‘managers’. Rather,
creative processes are frequently shared across what might be regarded as
identity-boundaries (Simon, 2006), hence capitalizing on what might be
regarded as mutual marginality (Burt, 2004). For example, Hunt et al. (2004)
explore the roles of orchestral conductors. These are revealed as entailing
skilful mastery in music, interpersonal interaction, leadership and market-
ing. An absence of any of these skill areas is likely to impact negatively on
the effectiveness of the conductor. Managing orchestral musicians requires
the conductor to have sufficient in-group legitimacy based on musical knowl-
edge and sometimes instrumental ability but this alone is insufficient without
the more generic ability to understand, relate to and lead others.
A common approach in creative organizations is to have ‘dual leader-
ship’, typically with an artistic leader and a managerial leader. Reid and
Karambayya (this issue) explore eight such situations in the performing arts.
Theoretically, one might expect such relationships to have high potential for
conflict, and this expectation was fulfilled in the study. Reid and Karambayya
highlight different forms of conflict focused on task, process and emotion
Townley et al. Managing in the creative industries 955
A research agenda?
What has been stressed so far is the importance of intellectual, social, cultural
and symbolic capital. Our contention is that much research into the creative
industries revolves around these different dimensions of capital (not that
these studies adopt Bourdieu as their theoretical foundation). The final
element of managing in the creative industries is the translation of these
capitals into economic capital. The relationship between the materialization
of creative production and its realization within an economic exchange is
divisive (Throsby, 2001). Creative products encompass two forms of value:
monetary and aesthetic. Two principles of legitimacy, centring on symbolic
and economic capital, are the twin poles structuring a field. Symbolic capital
is judged internally, influenced by the interests of participants in the field.
Economic capital introduces a heteronomous principle, that is, its criteria are
determined by those external to the field. To be ‘successful’, creative products
must satisfy the first; to be economically viable they must balance these twin
poles and encompass both.2
What is required is a detailed understanding of how these capitals are
accumulated, function within a field, are traded and translated. One route
to this would be to develop a more elaborate understanding of Bourdieu’s
work. Bourdieu uses the analogy of the game to illustrate his conceptual
framework (Lipstadt, 2003). Analysis involves an understanding of the
agents (players) in the field (game), their interests (commitment to the
field/game); the identification of the foundational value of the stakes (those
elements that remain unquestioned by players); the agents’ specific capitals
(‘chips’); fundamental capitals of the field (‘trump cards’); agents’ positions
in the field (place in the game); their orientation and strategies (their feel for
the game, style of play, position taking and stances) in the production and
reproduction of the field, as influenced by previous games played that have
conditioned agents’ outlooks and how they view the world (their habitus or
disposition) (Lipstadt, 2003). It would require an analysis of the interplay
between structure and agency, for while habitus and field give rise to dispo-
sitions and different forms of capital held by individuals, their use relies upon
the individual’s opportunity, motivation and ability (Ozbilgin & Tatli, 2005).
956
Strategies Intellectual capital Social capital Symbolic & cultural capital Economic capital
Acquisition • Working creatively • Identifying and negotiating • Cultural access • Accessing capital
• New product/services communities of interest • Outreach and education • Business start ups &
development • Network analysis programmes business planning
Human Relations 62(7)
Maintenance • Knowledge • Clustering and creativity • Image/identity projects • Business support services
management/learning platforms • Education & training • Accessing credit facilities
organization principles • Marketing planning and • Developing sustainable
• Protecting intellectual promotion businesses
property rights
Exchange • The creative pitch • Labour market referrals • Evaluation and impact metrics • Divestment strategies
• Franchise production • Building markets • Alternative income streams
Townley et al. Managing in the creative industries 957
Acknowledgement
The authors would like to thank Henning Berthold for his help with handling
this special issue and Professor Gail Fairhurst for taking editorial responsibility
for any articles where there was a possible conflict of interest.
Notes
1 Distinctions are also the product or artefact of the measuring tool. Individuals are
more ‘coherent’ in surveys than in semi-structured interviews, for example (Zukin
& Maguire, 2004).
2 For certain creative forms, ‘success’ in one form may be sufficient in itself, for
example, ‘art’ movies; and economic success may consciously work against symbolic
success. This relationship is ambivalent and raises the issue of the relationship
between restricted and large scale fields of production.
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