Internal or contract manufacturing highly creative products requires managers to assess both unobservable effort and uncertain output, leading to a lack of cost control. In addition, the acquisition of creative products in the market, managers are faced with the inevitable risk of damnation winner. Since this risk is largely dependent on the creative nature of the product, the higher the creative content, the higher the relative risks associated with internal or contract manufacturing. Thus, internal / contractual production of creative goods will tend to be less common than the above creative content associated with its production. The evolution of the U.S. film industry in the mid-20th century examples and implications for high creativity and enterprise. "Hide
by Richard Gere, Pablo T. Spiller Source: California Management Review 19 pages. Publication Date: November 1, 2007. Prod. #: CMR388-PDF-ENG
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