Purpose - Questions whether the structure of project-based organizations automatically leads to them being innovative, using the case of the British film industry to illustrate the arguments.
Design/methodology/approach - Draws on interviews with five producers, three senior production managers and one managing director of nine UK film companies, plus documentary evidence, to analyse the management and organizational structure of the film companies, the markets in which they operated, the entrepreneurial behaviour of the producers, the nature of their labour organization, their production methods and innovation, their networks and their relationships with the big US film distributors. Uses this to assess the level entrepreneurship and innovation within the industry.
Findings - Argues that the use of project based production and freelance workers makes the UK film industry very efficient but that the risk-aversion of the producers and their lack of entrepreneurship makes the industry very weak and overly-dominated by the film distributors. Also sees the way that freelance workers are used as making it necessary for production team members to have a narrow range of interchangeable skills that inhibits innovation. Argues that both these factors constrain the ability of the companies to produce films that are original or innovative. Concludes that project-based working inhibits rather than stimulates innovation.
Research limitations/implications - Outlines the research methods.
Originality/value - Identifies the reasons for the lack of innovation within the UK film industry.