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Line-Item Budgeting and Film Production – Exploring Some Benefits of Constraints on Creativity and Aesthetic Value Creation

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Submitted By Flippy
Words 17084
Pages 69
Marts, 2011

Line-item budgeting and film production – Exploring some benefits of constraints on creativity and aesthetic value creation

Thomas Frandsen, Ivar Friis, and Allan Hansen*)
Solbjerg Plads 3
2000 Frederiksberg
Copenhagen Business School
Denmark

*) Corresponding author: ah.om@cbs.dk

Early work – Please do not quote without the permission from the authors

Paper to be presented at the workshop on
Creativity and Control
Sponsored by Accounting Organizations and Society
4–5 April 2011, Barcelona, Spain
Abstract:
This paper explores the role of budgeting in the Danish film industry and seeks to illustrate the positive effects a line-budget might have on the creativity and innovativeness in film production. In our analysis we provide illustrative examples of the enabling and facilitating role of budget constraints on film production from the Danish film industry in general as well as from a case study of the process of making the Danish film “The Island of Lost Souls” in particular. We draw on
Elster (2000)’s constraint theory and suggest that the constraints imposed on agents by line-item budgeting under some circumstances lead to situations where ‘less is more’ as line-item budgeting might be used to focus creative behavior as well as pre-commit the agent against passion and time inconsistency. 1

I. Introduction
The dysfunctional consequences of constraints imposed by budgets on agents dealing with uncertain, complex or dynamic organizational settings have been discussed in research for decades
(Argyris 1952; Burns and Stalker 1961; Bruns and Waterhouse 1975; Merchant 1981; Brownell
1985; Shields and Shields 1998; Frow et al. 2010). In reference to cybernetic (Anthony 1965), mechanistic (Ansari 1979), diagnostic (Simons 1995) or coercive (Ahrens and Chapman 2004) controls the drawbacks of binding the agent to

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