The Competitive Advantage of the Indian and Korean Film Industries: An Empirical Analysis Using Natural Language Processing Methods

Abstract

India has a longstanding reputation in the film industry, whereas South Korean films have only recently achieved notable success globally. Despite their significant positions in the global film market, there are very few studies that compare and analyze the competitive advantage of the two countries in the film industry. This paper adopts the ABCD model as a complementary framework to the two mainstream theories of strategic management (i.e., industry-based view and resource-based view) to analyze and compare the competitiveness of the industrial success of emerging countries. For the empirical test, this paper uses natural language processing methods to operationalize the theoretical model. After collecting text data from news articles in English related to the Korean and Indian film industries, this study analyzes how many keywords with regards to the 8 sub-factors of the ABCD model are mentioned in the articles using the document similarity measurement. The results reveal the different but complementary areas of strengths. India has higher competitiveness in the factor of Agility while Korea has higher competitiveness in Convergence. This study also highlights the areas for further development and potential partnership between the two countries by leveraging each other's strengths.