This study aims to understand how games firms coordinate their production activities in the Brazilian Electronic Games Industry. To do so this paper makes use of the theories of transaction costs as well as of inter-organizational relationships to analyze firms' strategic choices with regard to games production: made in-house (Hierarchy), bought on the market (Market), or collaboration with a partner (Alliance). The research was conducted with firms belonging to the Brazilian Game Developers Association and data were collected from electronic surveys and interviews. The results show that firms tend to internalize activities of game production, in particular because of transaction costs associated with asset specificity (knowledge specialization and scarce availability of skilled labor). However, market relations were found relating to activities considered, by the firms, to be of less strategic importance as well as collaborative projects which provided firms with results such as reduction of uncertainty, greater flexibility, process improvement and mutual learning.
Creative industries; Inter-organizational relationships; Video games; Transaction costs
