The Industrial Organisation of the Dance Industry in the Netherlands: A Transaction Cost Perspective on Hybrid Forms of Organisation

Abstract

The organization of Electronic Dance Music (EDM) events has become a major export product in the Netherlands. In order to respond quickly to the new trends and needs, innovative forms of cooperation between producers are to be set up for the organization of exciting new events. A case study on how these EDM events are actually organised in the Netherlands shows that the best way to do it is through hybrid forms of organisation, which combine horizontal forms of organisation through the market and vertical forms through the hierarchy. As EDM events are characterised by much asset specificity, the perspective of transaction cost economics indicates why this industry relies on hybrid forms of organisation. Trust between the collaborating partners, intrinsic motivation to be professional in the design and creation of new, groundbreaking music sensations and an extensive use of social media play a key role in lowering the transaction costs in the dance industry.

Trust as Governance Tool in Hybrid Organizations: A Case Study for the Dance Industry in the Netherlands

“…In order to enhance reliability all procedures for selecting respondents, conducting interviews, and analysing data are documented as transparent as possible. More information on the methodology of conducting and analysing our interviews, and references to the literature, can be found in Den Butter and Joustra (2014).…”