## 3 Conceptual Framework and Hypotheses  
### Conceptual Framework: The ABCD Model  
The IBV and RBV of the firm are the two mainstream perspectives that explain the sources of the firms' competitive advantage. Therefore, industrial structure and firm positionings together explain how firms can achieve competitive advantages or gain higher profitability against rivals. Industrial structure characteristics are conceptualized as the five forces [3] that impede the entry and limit the current rivalry among participants in favor of industrial attractiveness and firm profitability. However, Indian films, for example, are produced by hundreds of small-scale production firms with one or fewer annual releases, collaborating with independent distributors, financers, and cinema operators [27]. In the case of Korea, the removal of protectionist policies and the opening of the Korean market to foreign competition have been critical for the take-off of its film industry [25]. Therefore, the IBV represented by [PERSON]'s frameworks is useful in understanding the competitive advantages of advanced country firms, yet they show limits when applied to the developing countries with underdeveloped markets and institutions [28; 29; 30]. On the other hand, the RBV emphasizes the importance of internal firm resources to explain the heterogeneity of firm performances within an industry. Therefore, the RBV focuses on the internal factors but neglects the external elements. The firm-specific idiosyncrasies depend on the accumulation of resources characterized with four conditions--rare, valuable, inimitable, and not substitutable [31]. This theory emphasizes the sources of current competitive advantages but cannot adequately explain how firms continuously create resources and capabilities to generate future competitive advantages [32]. Therefore, the RBV has often been criticized for its limitations in explaining the evolutionary path of the firms' capability building [4; 33]. The recent research in the RBV focuses on firm capabilities [34; 35; 36] to adapt to external changes and evolve over time, thereby complementing the static setting of the early RBV research. However, the RBV approach still focuses on the importance of ownership or access to the unique resources which cannot be easily copied by rivals. Considering RBV and film industry characteristics, Ref. [37] suggested three types of resources--network resources, production know-how, and marketing capabilities--that determine the market performance. Nevertheless, it would be difficult to say that Indian and Korean filmmakers have superior advantages against each other in terms of these resources. Although the above two approaches are helpful in distinguishing the various development levels between developed (e.g., the US) and developing countries (e.g., India and Korea), they are limited in explaining the different performance among countries with similar resource endowment or those that have adopted similar strategies. In this regard, the ABCD model [4] can fill the gap by explaining how a firm can achieve faster growth than other developing or developed economies with similar resource endowments. Accordingly, in contrast to the traditional approach that stresses the importance of superior resources or \"what\" approach, the ABCD model utilizes the \"how\" approach which focuses on how to strengthen competitiveness by efficiently utilizing extant resources. The ABCD model was first introduced to explain the strategy and fundamental factors that led to Korea's economic success within a short period. This model is composed of four factors--Agility, Benchmarking, Convergence, and Dedication. Each factor is further divided into two sub-factors, thereby comprising eight sub-factors in total. The first factor, Agility, is composed of two sub-factors, speed and precision, which contribute to enhancing competitiveness. The traditional approach to competitive advantage often emphasizes the entry speed such as first-mover advantage.