How did South Korean multiplexes survive the pandemic?: A dynamic capabilities perspective

Abstract

Purpose The film industry is going through a period of upheaval and crisis. This study aims to examine the movie theater industry’s survival strategies by analyzing South Korean multiplex management strategies during the pandemic from a dynamic capabilities perspective. Design/methodology/approach This study conducted a case study to analyze the management strategies of South Korean multiplexes using Teece's (2007) proposed components of sensing, seizing and transforming. Data was collected from business reports, websites, publications, news releases and interviews beginning in January 2020, when COVID-19 began to spread in South Korea, until June 2023. Findings South Korean multiplex theaters’ sensing capabilities have enabled companies to understand the changing demands of consumers and respond quickly. The seizing capability also enabled the development of distinctive business models, and the transforming capability contributed to equipping growth engines from a long-term perspective. Originality/value This study confirmed that the dynamic capabilities perspective and the three components conceptualized by Teece (2007) can explain the strategic choices of firms during acute crises such as pandemics. Additionally, these findings have practical implications for global film industry stakeholders.