Institutional Dynamics of Project-Based Creative Organizations: Irving Thalberg and the Hollywood Studio System

This chapter proposes an institutional framework for analysis of strategy in project-based organizations. The chapter argues that an analysis of the strategy of project-based organizations must take into account the interaction between deliberate and emergent strategic processes in this type of organizations. The chapter then goes on to argue that achieving this goal depends on addressing the ‘multicontextuality’ of project-based organizations – the fact that deliberate strategic processes respond to external environment, while emergent strategic processes are rooted in the organization's project portfolio. Based on this analysis, the chapter advances an institutional framework for analyzing project-based organizations which couples the institutional logic of the external environment, with the institutional logic which emerges from the internal ‘project field’. To explore this framework the chapter analyzes the emergence of the central-producer system in the Hollywood motion picture industry during the first quarter of the 20th century, and the role that Irving Thalberg played in creating this system.