22nd Biennial Conference of the International Telecommunications Society (ITS): "Beyond the Boundaries: Challenges for Business, Policy and Society", Seoul, Korea, 24th-27th June, 2018
The attention towards Multi-Channel Networks (MCNs) is notable in the media sector. Many firms adopt MCN business to capture the potential value created by new media trend. Consequently, the new investment, merger and acquisition (M&A), and in-house establishment trend is shaking up the media market. However, the short history of MCNs is yet reflected in the academia. Especially, there is limited literature on the industry-level analysis of MCNs. To fill the gap, this research attempts to understand how the firms are participating in the MCN industry across time, sectors, and regions. In other words, the firms' corporate strategies on the MCN adoption are analyzed. This paper classifies the type of strategic decision by Make, Buy, and Ally, then evaluates the influence of three strategic decisions on firm performance. It further investigates whether a first mover advantage exists in the MCN industry. To examine the firm performance, two accounting-based measures are employed: return on asset (ROA) and Tobin's Q. Research results indicate that Make leads better firm performance than Buy and Ally. In addition, the first mover advantage is confirmed in the MCN industry. Besides, some descriptive analyses of the MCN industry are presented in the study. As preliminary research examining the firms' corporate strategy on the adoption of MCN business, this paper provides meaningful implications for both practitioner and academia.
Multi-Channel Network (MCN) Corporate strategy Strategic alliance Merger and acquisition (M&A) In-house establishment First mover advantage Firm performance Return on assets (ROA) Tobin's Q