1023 - 1040 Assessing the Field of Media Management.indd 1025Palabra Clave - ISSN: 0122-8285 - Vol. 17 No. 4 - Diciembre de 2014. 1025-1040 Assessing the Field of Media Management and Economics Research: Looking Back, Looking Forward Alan B. Albarran1 Recibido: 2014-05-15 Aprobado por pares: 2014-08-19 Enviado a pares: 2014-05-22 Aceptado: 2014-10-06 DOI: 10.5294/pacla.2014.17.4.2 Para citar este artículo / To reference this article / Para citar este artigo Albarran, A. B. Diciembre de 2014. Assessing the Field of Media Management and Econo- mics Research: Looking Back, Looking Forward. Palabra Clave 17(4), 1025-1040. DOI: 10.5294/pacla.2014.17.4.2 Abstract I am honored to be asked by my friend and colleague, Dr. Germán Aran- go, to provide a contribution to this special issue of Palabra Clave devoted to the topic of media markets and industries, which also will serve to re- launch the Latin American Media Management Association (LAMMA). It has been my privilege to visit Universidad de La Sabana twice in my ca- reer, and I have had the opportunity to visit with German and his collea- gues at several international meetings over the years. !is particular paper will examine the "eld of media management and economics research by looking at its past and considering the future. In addition to providing a historical overview, the paper will discuss the development of media ma- nagement and economics as an area of academic research, consider the challenges the "eld is facing in the 21st century, and present ideas for a re- search agenda for the next decade. !e goal is to provide both a historical perspective and a heuristic look at where the "eld is headed in terms of re- search and development. For this essay, I am drawing heavily from a paper 1 University of North Texas, United States. albarran@unt.edu 1026 Assessing the Field of Media Management and Economics Research:... - Alan B. Albarran I presented at the 2012 Research Symposium devoted to “Media Manage- ment and Economics Research in a Transmedia Environment,” which was held during the Broadcast Education Association’s annual convention. !at paper was published in 2013, and the publisher has given me permission to cite text from that work in this venue (Albarran, 2013). Keywords Media management, Research and Development, media management, eco- nomy. (Source: Unesco !esaurus). 1027Palabra Clave - ISSN: 0122-8285 - Vol. 17 No. 4 - Diciembre de 2014. 1025-1040 Evaluación del ámbito de investigación de la gestión de medios y economía: mirando hacia atrás, mirando hacia adelante Resumen Me siento honrado de que mi amigo y colega, el Dr. Germán Arango, me pida presentar una contribución a este número especial de Palabra Clave dedica- do al tema de los mercados y la industria de los medios de comunicación, que también servirá para lanzar nuevamente a la Asociación Latino Americana de Gestión de Medios (LAMMA por sus siglas en inglés). Ha sido un privilegio para mí el poder visitar la Universidad de La Sabana dos veces durante mi ca- rrera, y he tenido la oportunidad de reunirme con Germán y sus colegas en varias reuniones internacionales a lo largo de los últimos años. Este trabajo examinará el campo de la gestión de los medios de comunicación y la investi- gación económica analizando su pasado y teniendo en cuenta el futuro. Ade- más de proveer una visión histórica, el documento discutirá el desarrollo de la gestión y la economía de los medios como un área de investigación académi- ca, considerará los desafíos que enfrenta el campo en el siglo XXI, y presenta- rá ideas para una agenda de investigación para la próxima década. El objetivo es proveer una perspectiva histórica y una visión heurística que dé cuenta de hacia dónde se dirige este campo en términos de investigación y desarrollo. Para este ensayo, extraigo en gran medida datos de un documento que pre- senté con ocasión del Simposio de Investigación de 2012, dedicado a la “Ges- tión de Medios e Investigación de la Economía en un Ambiente Transmedia”, que se celebró durante la convención anual de la Asociación de Educación por Radiodifusión. Ese documento se publicó en 2013 y el editor me ha dado el permiso para citar en este espacio el texto de ese trabajo (Albarran, 2013). Palabras clave Gestión de medios de comunicación, investigación y desarrollo, admi- nistración de los medios de comunicación, economía. (Fuente: Tesauro de la Unesco). 1028 Assessing the Field of Media Management and Economics Research:... - Alan B. Albarran Avaliação do âmbito de pesquisa da gestão de meios e economia: olhando para trás, olhando para frente Resumo Sinto-me honrado por meu amigo e colega Dr. Germán Arango ter me pe- dido apresentar uma contribuição para este número especial da Revista Pa- labra Clave, dedicado ao tema dos mercados e da indústria dos meios de comunicação, que também servirá para lançar novamente a Associação La- tino-americana de Gestão de Meios (LAMMA, por sua sigla em inglês). Foi um privilégio para mim poder visitar a Universidade de La Sabana duas ve- zes durante minha carreira e tive a oportunidade de me encontrar com Ger- mán e seus colegas em várias reuniões internacionais ao longo dos últimos anos. Este trabalho examina o campo da gestão dos meios de comunicação e da pesquisa econômica analisando seu passado e considerando o futuro. Além de fornecer uma visão histórica, neste documento discutem-se o des- envolvimento da gestão e a economia dos meios como uma área de pesquisa acadêmica. Também considera os desa"os que o campo enfrenta no século XXI e apresenta ideias para uma agenda de pesquisa para a próxima déca- da. O objetivo é dar uma perspectiva histórica e uma visão heurística so- bre aonde se dirige esse campo em termos de pesquisa e desenvolvimento. Para este ensaio, são extraídos dados de um documento que o autor apre- sentou no Simpósio de Pesquisa de 2012, dedicado à “Gestão de meios e pesquisa da economia num ambiente transmídia”, o qual foi realizado du- rante a convenção anual da Associação de Educação por Radiodifusão. Este documento foi publicado em 2013 e o editor me deu a permissão para ci- tar neste espaço o texto deste trabalho (Albarran, 2013). Palavras-chave Gestão de meios de comunicação, pesquisa e desenvolvimento, administração dos meios de comunicação, economia. (Fonte: Tesauro da Unesco). 1029Palabra Clave - ISSN: 0122-8285 - Vol. 17 No. 4 - Diciembre de 2014. 1025-1040 Research centered on the managerial and economic aspects of media indus- tries has a rich, diverse, and interdependent history. It is hard to say exactly when the earliest investigations began by scholars, as the earliest publis- hed work that can be identi"ed appeared in the 1940s, at least in the Uni- ted States. !ere were many governmental investigations that examined the development of media industries in the US, focusing mostly on the e#ects of media, the economic power of media institutions, and concentration of ownership. !ese governmental hearings did not generate research in the sense that we think of academic-based research today. In 2015, media management and economics (MME) research will be 75 years old, as near as can be determined. As we celebrate this “diamond” anniversary, it is important to consider how the "eld has grown and what lies ahead. First, how do we de"ne media management and media econo- mics research? Second, what are the important historical milestones in the development of MME research? !ird, how do we assess the state of me- dia management and economics research in the 21st century, and some of its challenges? Fourth, what are the important research questions the "eld needs to consider as it pursues a research agenda? Defining Media Management and Media Economics Interestingly, there is li$le consensus among scholars as to what constitutes a de"nition of media management and media economics. Albarran (2008), in summarizing his tenure as editor of the International Journal on Media Ma- nagement, could “not claim to have any answers as to how to de!ne the "eld of media management” (p. 184). Picard (2006), one of the founding scholars in the "eld of media economics, posited a similar view by writing, “In a tech- nical sense, there is no such thing as media economics . . .” (p. 23). !is is not intended to sound pessimistic; the "eld is di%cult to de"ne, because it is a complex and evolving area of study a#ected by many external forces. Albarran and Picard, and many other scholars agree that the study of media management and economics historically involved the application of managerial and economic concepts and theories to media industries. !e 1030 Assessing the Field of Media Management and Economics Research:... - Alan B. Albarran initial scholars/researchers looked to existing theories in the domains of business and management, along with theories drawn from general econo- mics that would help in conducting the early research on media industries. In the area of media management, this meant drawing from the ge- nerally-agreed upon schools of management: the classical school, the be- havioral school, and the modern school of management thought. Albarran (1997) and others authoring texts on media management have used this framework in several editions. !e three schools are compared in Table 1. Table 1. The Three Schools of management Name Philosophy Key !eories Classical School Increase productivity and e%ciency. Scienti"c management, Administrative management, Bureaucratic management Behavioral School Considers the goals of employees to help improve organizational productivity. Hawthorne e#ect, Motivation, !eory X & Y, !eory Z, Modern Approaches Considers both the micro- and macro-forces impacting the organization in order to improve productivity. Management by Objective, Total Quality Management, Systems !eory, Leadership, Resource Dependence, Strategic Management Source: Adapted by the author from various sources. In examining the development of media economics, Picard (2006) po- sits that the "eld was organized among three domains (theoretical, applied, and critical) operating at di#erent levels of analysis. !is framework is pre- sented in Table 2. !ese frameworks have helped in the development of the "elds of media management and economics, but they have not necessarily clari"ed exactly how the "elds should be de"ned. !is has become even more cha- llenging, given the numerous changes that have occurred during the past few decades as a result of technological, regulatory, economic, globaliza- tion and social forces (Albarran, 2010b; Downes, 2009). De"ning these "elds becomes even more muddled from a descripti- ve standpoint when we consider all the possible permutations involved in 1031Palabra Clave - ISSN: 0122-8285 - Vol. 17 No. 4 - Diciembre de 2014. 1025-1040 each area. For example, in considering media management research, there are many possible levels of focus. One might focus on management activi- ties at the corporate or ownership level, studying those actions or respon- ses to external forces encountered by corporate o%cers and CEOs. One might concentrate on management at the level of an organization, such as a television station, newspaper, or digital enterprise. Even there, “mana- gement” occurs at di#erent levels of the organization, so there is a need to further de"ne and di#erentiate among these levels. Even self-employed en- trepreneurs in media management must initially “manage” their own bu- siness and make decisions. !ese examples just point to the challenges of how to de"ne media management. !e situation is no di#erent with the study of media economics. Eco- nomic activities occur at many di#erent levels. Albarran (2010a) suggests considering four di#erent levels of analysis (individual, household, nation/ state, global) to analyze what is called “the media economy.” !ere are also many di#erent types of economic transactions that occur from business to consumer, business to business, and consumer to consumer, which could constitute a part of media economics. !e entire area of critical scholars- hip or political economy, which is concerned with concepts like hegemony, power and technological determinism, also claims part of the "eld, yet is vastly di#erent when considering micro and macroeconomic forces. Domains !eoretical Foundations Level of Analysis Topics Examined !eoretical Neoclassical economics Consumer, "rm, market, industry Supply, demand, price, production, elasticity, concentration, diversity Applied Industry-based Also in&uenced by neoclassical economics Consumer, "rm, market, industry Structure, conduct, performance, spending, diversi"cation, strategy Critical Marxist studies British cultural studies Political economy Nation-state, global Ownership, power, policy decisions, social and cultural e#ects of media, globalization, welfare Table 2. Theoretical Domains in Media Economics Research Source: Albarran (2010a); Picard (2006). 1032 Assessing the Field of Media Management and Economics Research:... - Alan B. Albarran The Interdependent Nature of Media Management and Economics Perhaps some of the challenges in trying to de"ne media management and media economics are due, in part, to their interdependence. Both areas are, in fact, related to one another. Management is responsible for the econo- mics of an entity, usually with the goal to earn pro"ts for owners and sha- reholders. Yet, management’s ability to earn pro"ts is dependent on many factors, such as the number of competitors in a market, the state of the eco- nomy, unemployment, in&ation and, in the case of media industries, con- sumer discretionary spending (see Figure 1). Figure 1. Examples of Interdependent Factors Influencing Management and Economics Source: Author’s rendition. All types of businesses combine managerial and economic responsi- bilities. While there may be particular roles or titles that specialize in one area or another, one is more likely to encounter managers higher up in the organization who spend a good amount of their time monitoring and analyzing the "nancial/economic condition of their enterprise. For exam- ple, a comptroller or accountant in a typical media facility will prepare "- nancial statements that are reviewed by the General Manager. Down one level, department heads typically will have authority over a budget, in addi- 1033Palabra Clave - ISSN: 0122-8285 - Vol. 17 No. 4 - Diciembre de 2014. 1025-1040 tion to their day-to-day managerial responsibilities. !e department heads, usually regarded as middle managers, might not deal with economics on a daily basis, but are mindful of the economics of their part of the enterprise and the need to control expenses. !is interdependence between management and economics has, of course, evolved over time in media industries. Contemporary media ma- nagers now must be concerned with managing a host of digital platforms, and "nding ways to monetize their use. !ese new platforms'such as smart phones and tablet devices, to name just two - continue to grow in popularity and further fragment the traditional audience/media relation- ship. Many digital platforms have yet to produce the kind of revenues ge- nerated by their analog or “traditional” holdings. Former NBC Executive Je# Zuker, now President of CNN, once quipped about “trading analog dollars for digital pennies,” which was later amended to “digital dimes” (Verna, 2010). E#orts to generate revenues via digital platforms remain a huge management challenge. Media Management: Milestones and Development In assessing the development of the "eld of media management (and later media economics), a simple framework will be used for the sake of orga- nization. We will consider the predominant theories that have guided the "eld during its "rst 75 years of existence, and then consider some of the key milestones in the MME "eld through a decade-by-decade look at the evo- lution of media management and economics research. Important "eories used in Media Management Research. In assessing media management research, Mierzjewska and Holli"eld (2006) found that “most theory is drawn from the larger "eld of organizational studies” (p. 39), but recognized that media management is unique because of the nature of media information products and the economic characteristics of the me- dia. !e authors reviewed 15 years of published research (1988-2003) in the Journal of Media Economics and the International Journal on Media Ma- nagement, and found there were six common approaches clustered into six 1034 Assessing the Field of Media Management and Economics Research:... - Alan B. Albarran categories: strategic management theories (54); technology, innovation and creativity (21); audience/consumer theories (12); contingency/e%- ciency theories (9); political economy and normative approaches (5); and organizational/professional cultural theories (5). Aside from the published research in IJMM, a review of the last 70+ years of research devoted to media management topics will show studies that utilize a number of common theories developed in other areas of com- munication research, broadly de"ned. !ese include such theories as the di#usion of innovations, the uses and grati"cations tradition, general econo- mic theory, and various theories related to leadership and entrepreneurship. Absent are theories that are unique to the area of media management and have been re"ned and tested over time. !is is not surprising, in one sense, given the “young” nature of the "eld of study and a smaller base of researchers who are interested in the topic compared to the much broader area of communication research that considers all forms of human commu- nication. But the lack of unique theory building is also one of the pitfalls a#ecting media management research; it is something the "eld of study ne- eds to address in order to encourage future development. Media Economics: History and Development Important Theories used in Media Economics Research Like media management research, theories guiding research tended to be drawn from the larger "eld of economics and applied to media industries. In examining the body of published research in media economics, one "nds a predominance of studies using the established industrial organiza- tional (IO) framework drawn from neoclassical economics. !e IO model is also known in the literature as the structure-conduct-performance mo- del (SCP), as it considers the market structure, conduct of the major pla- yers in the market, and the performance of the market. An o#shoot of the IO/SCP framework is the resource-based view (RBV), which considers that each "rm in a market o#ers a set of unique re- 1035Palabra Clave - ISSN: 0122-8285 - Vol. 17 No. 4 - Diciembre de 2014. 1025-1040 sources it uses to achieve a competitive advantage or position in a market. RBV has o(en been studied in conjunction with strategic management to- pics, yet another example of the interdependence between the areas of me- dia management and media economics (e.g., Chan-Olmsted, 2005). !e principle of relative constancy developed by McCombs (1972) and the niche theory developed by Dimmick (2003) are two areas of theory that are widely used across the "eld and each has spawned a number of stu- dies. Relative constancy is concerned with consumer spending on the me- dia, while the niche theory looks at competition and coexistence among "rms seeking similar resources. New areas of theory are starting to emerge and show promise One of the more interesting areas of theory development is a$ention econo- mics (Davenport & Beck, 2001). A$ention economics is particularly rele- vant, given the wide degree of fragmentation we are witnessing as a result of more and more choices and platforms for consumption. A$ention eco- nomics considers economic concepts like allocation, but also the psycho- logical a$ributes used by consumers in how they devote a$ention and how strongly they a$end to media content products. Like media management research, we need greater theoretical development in media economics to move the "eld forward. Important Events in Media Management and Economics Research Table 3 presents a summary of some of the most important events that have in&uenced media management and economic research over the years. Media Management and Economics in the 21st Century !is review and discussion results in a paradox as one tries to determine exactly where media management and economics research is as we consi- der its 75-year history. One can argue the MME "eld is rich and diverse, drawing on multiple perspectives from scholars around the globe and inves- 1036 Assessing the Field of Media Management and Economics Research:... - Alan B. Albarran tigating new technologies, delivery systems, and digital platforms. Conver- sely, one can argue MME research still su#ers from a lack of identity and its ability to de"ne itself, along with a lack of theoretical and methodological development, which should be realized in a "eld of study that is 75 years old. What perhaps makes this so interesting is that we are at a point in time where media management and economics –however de"ned– have more areas than ever available for research and investigation. !e ability to collect data from multiple levels of analysis has mushroomed, and the opportunities available through “big data” are just coming into existence. Table 3. Key Milestones in MME Research Source: Compiled by the author. Decade Milestone 1940s Earliest books appear on topics related to media management; post-war develop- ment of media around the globe lays the foundation for future growth. 1950s Television emerges as a mass medium; research on newspaper management appears. 1960s Satellites facilitate global communication; television becomes the dominant me- dium and research follows the shi(. 1970s Development of cable/satellite television results in shi(s in research, as scholars fo- llow suit; newspapers begin a secular decline in circulation; technology adoption accelerates with the debut of video recording devices. 1980s Internet emerges as a mass medium with email as the primary application; net- work dominance by television ends; "rst journals devoted solely to media mana- gement and media economics debut; universities begin to o#er concentrations in media management. 1990s New technologies and delivery systems lead to fragmentation of audiences; research delves into new media; the "rst World Media Economics Conference is held and begins biannual meetings in even-numbered years as of 1998. 2000s !e Journal of Media Economics and International Journal on Media Management editorial boards show the composition of scholars exhibits strong diversity and en- compasses the globe, with Africa being the only missing continent; the Handbook of Media Management and Economics is published in 2006; social media emerges as a new consumer-driven digital platform. 2010s Explosion of social media adds to a very fragmented and diverse media landscape; many university programs modify curriculum and direction to account for shi(s in new media; research related to new media technologies occurs more frequently than research devoted to “traditional” media. 1037Palabra Clave - ISSN: 0122-8285 - Vol. 17 No. 4 - Diciembre de 2014. 1025-1040 !is paradox concerning the state of the "eld will not be solved in this paper. So, let us consider what we do know regarding where MME stands at this particular point in its history by considering a research agenda that would aid scholars in further development of the "eld. Future Research: Propositions and Needs In assessing the "rst 75 years of media management and economics research, the following propositions are provided as a way to summarize the state of the "eld as we “look back” and plan ahead. !e propositions are the author’s views; hopefully, this will spur some discussion among scholars as they con- sider adding their own propositions and further re"ning these ideas. z !ere is a growing body of MME literature that o#ers many practical and theoretical contributions. Yet, overall, the "eld has struggled for its own sense of identity and standing, and the ability to clarify the contributions it makes to the larger area of communication science. z We do not have consensus on how to de"ne media management and economics research, despite 75 years of investigation. !e "eld ne- eds to recognize that management and economics occur on di#erent levels in media enterprises and are interdependent concepts. z !e "eld needs greater theoretical development. One can argue the- re are no truly unique theories found in media management and eco- nomics research; instead, there are applications of theories developed in other "elds or adapted for analysis in an MME context. z Likewise, the MME "eld would bene"t from new methodological tools to help in analyzing data and conducting research designs. !is is especially true in media economics research, where we lack new tools to assess such important areas as concentration across indus- tries and the signi"cance of intellectual property. z !ere is more interest in the MME "eld than at any time in its history and more opportunities for study, given the growing number of digital platforms and new ways to connect information goods with consumers. 1038 Assessing the Field of Media Management and Economics Research:... - Alan B. Albarran Given these propositions and their challenges, how should we focus our a$ention as a "eld in regards to a future research agenda? What follows are a few thoughts regarding future research in the MME "eld to help move the "eld forward. z Most media management and economics research has tended to take place at a single level of analysis; however, we know that management occurs across levels and economic activities function the same way. Research should be based on these multiple levels and consider how the various levels impact one another. z We have very few studies conducted across time, speci"cally longitu- dinal studies or time-series analysis. Much of the research is done at single points in time; thus, it is unable to observe longer term trends and pa$erns that may exist and a#ect business practices. Likewise, there are no real meta-analyses of single point studies that could help to alleviate some of these concerns. z More theoretical development is needed, especially in the area of me- dia management, where there are no theories unique to the "eld. Media economics also would bene"t from greater theory development, espe- cially as new platforms and mediums enter the markets. Two areas are particularly ripe for such development: social and mobile media. z Methodological tools are at best outdated and in need of re"nement, especially in the area of media economics. One example is the study of concentration, where the "eld still relies on measures developed decades ago that only take into account unrelated and unique mar- kets. z MME is truly a global phenomenon. Yet, the majority of research is limited to management or economic practices found in a single na- tion. Integrating a global perspective or even a pan-regional perspec- tive could provide new ways to evaluate and assess managerial and economic performance across countries/regions of the globe. 1039Palabra Clave - ISSN: 0122-8285 - Vol. 17 No. 4 - Diciembre de 2014. 1025-1040 !ese are just a few ideas that will help to strengthen research in the MME "eld. Regarding the last point, Latin America, as a region, would stron- gly bene"t from more pan-regional research. Latin America is growing in stature and in&uence, but our understanding of media industries and mar- kets within Latin America is limited. With the rapid pace of evolution through technology and other for- ces impacting media industries, we know there will be ongoing change as to how we approach the study of media management and economics. We can look to the past for the work that has provided a foundation on which to build new directions and new opportunities for study and inquiry. References Albarran, A. B. (2008). De"ning media management. "e International Jour- nal on Media Management 10 (4), 184-186. Albarran, A. B. (2010a). !e media economy. New York: Taylor and Francis. Albarran, A. B. (2010b). !e transformation of the media and communica- tion industries. Pamplona: EUNSA. Albarran, A. B. (2013). Media management and economics research: !e "rst 75 years. 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(2006). !eoretical approaches in media management research. In Albarran, A. B., Chan-Olmsted, S. M., & Wirth, M. O. (eds.). Handbook of media management and economics (pp. 37-66). Mahwah, NJ: Lawrence Erlbaum. Picard, R . G. (2006). Historical trends and pa$erns in media economics. In Albarran, A. B. Chan-Olmsted, S. M. & Wirth, M. O. (eds.). Handbook of media management and economics (pp. 23-36). Ma- hwah, NJ: Lawrence Erlbaum. Verna, P. (2010, October 7). How much longer can old-guard media slow the shi$ of dollars to digital dideo? Retrieved March 22, 2012 from: h$p://www.emarketer.com/blog/index.php/buy-mansion-digi- tal-dimes/