Dynamic capability and superior firm performance in the UK Media Industry.

Abstract

The past decade has seen a transformation in the way television broadcasters have managed their businesses. This paper examines the ‘dynamic capability’ of two UK television broadcasters, BskyB and ITV, and their ability to adapt and transform themselves into multi-product, multi-platform media companies. Using Comparative Financial Analysis and Content Analysis of company Annual Reports, it compares and contrasts operating ratios in a time series, to gauge each company’s historical performance over time, whilst also providing inter-company comparisons. It also illustrates how the strategic management of media firms can be significantly different for two companies operating in the same sector. This research demonstrates an original contribution to knowledge in two areas. Firstly, it provides evidence of the dynamic capability performance effects of significant players in UK television broadcasting. Secondly, it extends the limited debate in literature on how to measure dynamic capability performance