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Case study
Publication date: 7 June 2021

Muralee Das and Susan Myrden

Resource-based view (RBV) theory (Barney, 1991; Barney and Mackey, 2016; Nagano, 2020) states that a firm’s tangible and intangible resources can represent a sustainable…

Abstract

Theoretical basis

Resource-based view (RBV) theory (Barney, 1991; Barney and Mackey, 2016; Nagano, 2020) states that a firm’s tangible and intangible resources can represent a sustainable competitive advantage (SCA), a long-term competitive advantage that is extremely difficult to duplicate by another firm, when it meets four criteria (i.e. not imitable, are rare, valuable and not substitutable). In the context of this case, we believe there are three sources of SCA to be discussed using RBV – the major league soccer (MLS) team player roster, the use of artificial intelligence (AI) technologies to exploit this roster and the league’s single-entity structure: • MLS players: it has been widely acknowledged that a firm’s human resource talent, which includes professional soccer players (Omondi-Ochieng, 2019), can be a source of SCA. For example, from an RBV perspective, a player on the Los Angeles Galaxy roster: > cannot play for any other team in any other league at the same time (not imitable and are rare), > would already be a competitive player, as he is acquired to play in the highest professional league in the country (valuable) and > it would be almost impossible to find a clone player matching his exact talent characteristic (not substitutable) anywhere else. Of course, the roster mix of players must be managed by a capable coach who is able to exploit these resources and win championships (Szymanski et al., 2019). Therefore, it is the strategic human resource or talent management strategies of the professional soccer team roster that will enable a team to have the potential for an SCA (Maqueira et al., 2019). • Technology: technology can also be considered a source of SCA. However, this has been a source of contention. The argument is that technology is accessible to any firm that can afford to purchase it. Logically, any MLS team (or for that matter any professional soccer team) can acquire or build an AI system. For many observers, the only obvious constraint is financial resources. As we discuss in other parts of the case study, there is a fan-based assumption that what transpired in major league baseball (MLB) may repeat in the MLS. The movie Moneyball promoted the use of sabermetrics in baseball when making talent selection (as opposed to relying exclusively on scouts), which has now evolved into the norm of using technology-centered sports analytics across all MLB teams. In short, where is the advantage when every team uses technology for talent management? However, if that is the case, why are the MLB teams continuing to use AI and now the National Basketball Association (NBA), National Football League (NFL) and National Hockey League are following suit? We believe RBV theorists have already provided early insights: > “the exploitation of physical technology in a firm often involves the use of socially complex firm resources. Several firms may all possess the same physical technology, but only one of these firms may possess the social relations, cultural traditions, etc., to fully exploit this technology to implementing strategies…. and obtain a sustained competitive advantage from exploiting their physical technology more completely than other firms” (Barney, 1991, p. 110). • MLS League Single-Entity Structure: In contrast to other professional soccer leagues, the MLS has one distinct in-built edge – its ownership structure as a single entity, that is as one legal organization. All of the MLS teams are owned by the MLS, but with franchise operators. The centralization of operations provides the MLS with formidable economies of scale such as when investing in AI technologies for teams. Additionally, this ownership structure accords it leverage in negotiations for its inputs such as for player contracts. The MLS is the single employer of all its players, fully paying all salaries except those of the three marquees “designated players.” Collectively, this edge offers the MLS unparalleled fluidity and speed as a league when implementing changes, securing stakeholder buy-ins and adjusting for tailwinds. The “socially complex firm resources” is the unique talent composition of the professional soccer team and most critically its single entity structure. While every team can theoretically purchase an AI technology talent management system, its application entails use across 30 teams with a very different, complex and unique set of player talents. The MLS single-entity structure though is the resource that supplies the stability required for this human-machine (technology) symbioses to be fully accepted by stakeholders such as players and implemented with precision and speed across the entire league. So, there exists the potential for each MLS team (and the MLS as a league) to acquire SCA even when using “generic” AI technology, as long as other complex firm factors come into play.

Research methodology

This case relied on information that was widely reported within media, press interviews by MLS officials, announcements by various organizations, journal articles and publicly available information on MLS. All of the names and positions, in this case, are actual persons.

Case overview/synopsis

MLS started as a story of dreaming large and of quixotic adventure. Back in 1990, the founders of the MLS “sold” the league in exchange for the biggest prize in world soccer – the rights to host the 1994 Fédération Internationale de Football Association World Cup before they even wrote up the business plan. Today, the MLS is the highest-level professional men’s soccer league competition in the USA. That is a major achievement in just over 25-years, as the US hosts a large professional sports market. However, MLS has been unable to attract higher broadcasting value for its matches and break into the highest tier of international professional soccer. The key reason is that MLS matches are not deemed high quality content by broadcasters. To achieve higher quality matches requires many inputs such as soccer specific stadiums, growing the fan base, attracting key investors, league integrity and strong governance, all of which MLS has successfully achieved since its inception. However, attracting high quality playing talent is a critical input the MLS does not have because the league has repeatedly cautioned that it cannot afford them yet to ensure long-term financial sustainability. In fact, to guarantee this trade-off, the MLS is one of the only professional soccer leagues with an annual salary cap. So, the question is: how does MLS increase the quality of its matches (content) using relatively low cost (low quality) talent and still be able to demand higher broadcast revenues? One strategy is for the MLS to use AI playing technology to extract higher quality playing performance from its existing talent like other sports leagues have demonstrated, such as the NFL and NBA. To implement such a radical technology-centric strategy with its players requires the MLS to navigate associated issues such as human-machine symbioses, risking fan acceptance and even altering brand valuation.

Complexity academic level

The case is written and designed for a graduate-level (MBA) class or an upper-level undergraduate class in areas such as contemporary issues in management, human resource management, talent management, strategic management, sports management and sports marketing. The case is suitable for courses that discuss strategy, talent management, human resource management and brand strategy.

Details

The CASE Journal, vol. 17 no. 2
Type: Case Study
ISSN: 1544-9106

Keywords

Article
Publication date: 9 May 2016

Timothy D. DeSchriver, Daniel A. Rascher and Stephen L. Shapiro

Two of the primary growth strategies for Major League Soccer (MLS) have been team expansion and the construction of soccer-specific stadiums. Therefore, the purpose of this paper…

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Abstract

Purpose

Two of the primary growth strategies for Major League Soccer (MLS) have been team expansion and the construction of soccer-specific stadiums. Therefore, the purpose of this paper is to determine the relationship between these factors and game-specific MLS spectator attendance.

Design/methodology/approach

Two multiple regression models, one using multi-level mixed effects linear regression and another using interval regression, were developed to explain the variation in attendance utilizing the two factors of interest along with other control factors that have been identified as attendance determinants in previous literature. Game-specific data were collected for five MLS seasons, 2007-2011.

Findings

The two regression models explained approximately 40 percent of the variation in spectator attendance and the results showed that expansion teams and soccer-specific stadiums were significantly related to attendance. However, the effect of soccer-specific stadiums was minimized due to the extreme success of the Seattle Sounders in drawing about twice as many fans as the next highest drawing franchise, yet playing in an American football stadium.

Research limitations/implications

While many of the standard factors such as the presence of holidays and novelty players, competition from other professional teams, and day of week, competition from other professional teams; team quality failed to show significance. Expansion teams drew better than incumbent teams and the impact from soccer-specific stadia is weak given the success of the Seattle franchise (and possibly negative when excluding Seattle). Censoring of the dependent variable had a discernible impact on many of the attendance factors.

Practical implications

These findings may be useful to managers of MLS and their teams along with other professional teams and/or leagues that are investigating the use of either team expansion or the construction of new facilities to increase spectator attendance.

Originality/value

This is the first study to investigate the relationship between expansion and new stadium construction in MLS over multiple years. The results indicate that MLS’s decision to use team expansion and the construction of soccer-specific stadiums has been beneficial with respect to spectator attendance.

Details

Sport, Business and Management: An International Journal, vol. 6 no. 2
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 1 January 2003

Elizabeth Jowdy and Mark McDonald

This case study demonstrates how a start-up professional sport league, the Women's United Soccer Association (WUSA), successfully incorporated an interactive fan festival into its…

Abstract

This case study demonstrates how a start-up professional sport league, the Women's United Soccer Association (WUSA), successfully incorporated an interactive fan festival into its inaugural Championship Weekend. Prior to revealing the details of the WUSA event, the history and rationale of interactive fan festivals is outlined. Also highlighted are the key marketing concepts applied (relationship marketing, brand management, experiential branding) in order to assist sport properties interested in using the interactive fan festival as a marketing tool in the future.

Details

International Journal of Sports Marketing and Sponsorship, vol. 4 no. 4
Type: Research Article
ISSN: 1464-6668

Keywords

Article
Publication date: 17 January 2023

Bruno Melo Moura, André Luiz Maranhão de Souza-Leão, Ewerton Pacheco da Silva and Guilherme Monteiro Alves dos Santos

Sports leagues, such as Major League Soccer (MLS), aim at expanding their audience at global level through alternative media other than television (TV). Brazil stands out among…

Abstract

Purpose

Sports leagues, such as Major League Soccer (MLS), aim at expanding their audience at global level through alternative media other than television (TV). Brazil stands out among football media consumer audiences as one of the main markets worldwide. Brazilian MLS consumers play the role of fans to converge between TV media and digital platforms, in a phenomenon that has been called Social TV.

Design/methodology/approach

The aim of the current research is to investigate how Brazilian MLS fans' consumption process is established through Social TV; it was done based on netnography performed between 2018 and 2020.

Findings

Results have indicated that Social TV is a catalyst of practices associated with fan culture: cultural convergence, technologies appropriations, poaching experiences and production of a collective intelligence.

Research limitations/implications

Current research reinforces how ethnography methodology has been gaining room as likely consumer market research, working as alternative method based on the prevalence of focus group and survey techniques.

Practical implications

Social TV phenomenon presents itself as a possibility to expand and direct marketing strategies focused on sports management, just as the media often consumed by fans.

Originality/value

From the results, it is possible assuming that connections between fans are punctually guided by their relationship with the cultural object consumed by them in a network relationship whose actors deindividualize sociocultural practices such as consumption. Thus, the main contribution of the study lies on identifying how fan culture can be autonomously established in the market arena in comparison to other cultures.

Details

Sport, Business and Management: An International Journal, vol. 13 no. 3
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 2 February 2022

Beth G. Clarkson, Keith D. Parry, Alex Culvin and Stacey Pope

Women's football faces an existential threat from COVID-19. Using case studies, the authors explore the COVID-19 responses of three highly ranked national football associations…

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Abstract

Purpose

Women's football faces an existential threat from COVID-19. Using case studies, the authors explore the COVID-19 responses of three highly ranked national football associations (Australia, England and the USA) and their professional women's football leagues to (a) compare and shed new insights into the wide range of phased responses and (b) establish recommendations for other nations to navigate major crises with their social and ethical responsibilities to women's football.

Design/methodology/approach

Drawing on institutional theory, a framework analysis was undertaken examining 71 articles to analyse the gendered global impacts of COVID-19 on women's football.

Findings

Results highlight several important recommendations for nations to consider during the pandemic: (1) maintain active communication with the community to allay worries about the future of women's football, (2) gather support from health and government officials, (3) seek out commercial and broadcasting partnerships to drive revenue, and (4) the interests of women's football are best served when responsibility for the elite women's league does not rest (solely) with national football associations.

Social implications

The authors argue that sport is an interwoven part of society and cannot be separated from gender equality issues irrespective of the pandemic.

Originality/value

The study is first to explore institutional pressures and football governing bodies during COVID-19 and provides a framework for nations to manage major crises.

Details

Sport, Business and Management: An International Journal, vol. 12 no. 4
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 8 May 2017

Nicholas Watanabe and Brian Soebbing

The purpose of this paper is to examine the impact of team performance, price dispersion – having multiple ticket prices for a single event, and market characteristics on fan…

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Abstract

Purpose

The purpose of this paper is to examine the impact of team performance, price dispersion – having multiple ticket prices for a single event, and market characteristics on fan attendance. By considering the context of the Chinese Super League (CSL), this study considers multiple strategies for enhancing the demand for sport in relation to factors on- and off-the-field of play.

Design/methodology/approach

This study uses economic demand theory to examine consumer interest in sporting events in relation to pricing. Through employing econometric modeling, regression analysis is used to estimate results from match-level data encompassing multiple seasons.

Findings

The findings estimated from the linear regressions indicate that using multi-tiered pricing for sporting events does not significantly enhance demand in this context. Furthermore, it is found that consumers are responsive to matches against rival teams and strong opponents.

Research limitations/implications

The results run counter to prior literature on price dispersion, indicating that attendance demand may not always be influenced by the number of price points.

Practical implications

The findings help to develop an understanding of how team performance and pricing are important parts of meeting organizational goals in sport. From this, strategies can be formed to help stakeholders and managers in improving organizational performance.

Originality/value

This research is one of the first to consider the CSL, where both single and multiple price points exist for sporting events. Thus, it helps to build both theoretical and empirical knowledge in regards to the importance of pricing systems.

Details

Sport, Business and Management: An International Journal, vol. 7 no. 2
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 14 February 2024

Christopher M. Harris, Lee Warren Brown and Mark B. Spence

This study examines factors that influence organizations’ choices of an internal human capital development strategy and an external human capital acquisition strategy. The human…

Abstract

Purpose

This study examines factors that influence organizations’ choices of an internal human capital development strategy and an external human capital acquisition strategy. The human resource architecture indicates that organizations will use different human capital acquisition strategies. Following the resource-based view, human capital theory and the human resource architecture, we examine factors that impact the choices of different human capital acquisition strategies.

Design/methodology/approach

We examine these important human capital decisions in the context of Major League Soccer. Data to test the hypotheses were collected from a variety of publicly available sources. We tested the hypotheses with regression analyses.

Findings

We find that while organizations employ both internal and external human capital strategies, organizations may have one dominant human capital strategy and the other strategy may be used to supplement the human capital needs of organizations. Additionally, our results indicate that organizations with an older workforce tend to use an internal human capital development strategy, while higher performing organizations are less likely to use an internal human capital development strategy.

Originality/value

This study makes contributions by examining the choices between internal and external human capital strategies and factors that influence the choice of an internal or external human capital strategy.

Details

Employee Relations: The International Journal, vol. 46 no. 2
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 11 June 2021

David Lynn Painter, Brittani Sahm and Paul Schattschneider

This investigation's purpose is to compare coverage of the corporate social responsibility (CSR) behaviors of the National Women's Soccer League (NWSL) and Major League Soccer

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Abstract

Purpose

This investigation's purpose is to compare coverage of the corporate social responsibility (CSR) behaviors of the National Women's Soccer League (NWSL) and Major League Soccer (MLS). The goals are (1) to extend CSR analyses beyond organizational reports and (2) to compare coverage of professional sports teams' CSR behaviors across genders.

Design/methodology/approach

Specifically, this quantitative content analysis compared local newspaper coverage of the socially responsible behaviors of the three NWSL and MLS teams owned and operated by the same organizations in Portland, Houston and Orlando.

Findings

The NWSL teams received significantly less and more negative coverage than the MLS teams. Moreover, the NWSL coverage was more individualistic, more focused on ethics and quoted individual team players more frequently, while the MLS coverage was more collective, focused on philanthropy and quoted team organization members more frequently.

Research limitations/implications

Although intentionally based on a sample of six teams, this study's results suggest the biases in coverage of women's sports teams extend beyond the playing field to their corporate social responsibility behaviors, reporting and news coverage.

Originality/value

As one of the first studies to analyze media coverage of professional sports team's CSR activities and to compare their socially responsible behaviors across genders, the results provide compelling implications for CSR scholars and practitioners, especially in the sports industry.

Details

Corporate Communications: An International Journal, vol. 27 no. 1
Type: Research Article
ISSN: 1356-3289

Keywords

Article
Publication date: 1 May 2005

Hans H. Bauer, Nicola E. Sauer and Philipp Schmitt

The paper aims to refine existing customer‐based brand equity models for the team sport industry and examine the importance of brand equity in the professional German soccer league

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Abstract

Purpose

The paper aims to refine existing customer‐based brand equity models for the team sport industry and examine the importance of brand equity in the professional German soccer league Bundesliga.

Design/methodology/approach

After assessing brand equity on the basis of actual consumer responses, we relate the brand equity measure on an aggregate level to objective means of economic success. Online sampling with a total database of 1,594 usable questionnaires is utilized for analysis. Exploratory and confirmatory factor analyses (including multi‐group analysis) as well as structural equation modeling and regression analysis are applied.

Findings

Results highlight the adequacy of a parsimonious brand equity model in team sport (BETS) model and the importance of the brand in team sport for economic success.

Research limitations/implications

The main limitations of this research are sample constraints; test persons are highly involved in and knowledgeable about the product category under research. Future research should address a more diverse population.

Practical implications

Teams and their management have to realize the relevance of their brand in economic success. They have to recognize the significance of the stadium visit and the individual spectators in the stadium.

Originality/value

First, a parsimonious BETS model is presented. Second, it was found that special attention should be devoted to the brand equity‐component “brand awareness” when researching brand equity. Third, this is one of the few studies that uses actual economic data to show the impact of brand equity based on direct consumer responses on company success.

Details

European Journal of Marketing, vol. 39 no. 5/6
Type: Research Article
ISSN: 0309-0566

Keywords

Open Access
Article
Publication date: 27 June 2022

Timothy Kellison and Beth A. Cianfrone

In this study, the authors examine consumer attitudes toward a professional soccer club’s proenvironmental initiatives and evaluate whether key themes are consistent with those…

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Abstract

Purpose

In this study, the authors examine consumer attitudes toward a professional soccer club’s proenvironmental initiatives and evaluate whether key themes are consistent with those found in previous research of fans in different sporting contexts.

Design/methodology/approach

The authors analyzed empirical material provided by 147 highly identified supporters of a Major League Soccer team. Using template analysis, the authors compared codes, categories and themes with those previously identified in a reference group of National Football League (NFL) fans.

Findings

Twenty-three preliminary codes, nine categories and four themes were established by the researchers. Three themes – Considering Environmental Action, Business Insights and Impacting the Fan Experience – were all consistent with the NFL reference group. A fourth theme, Public Visibility, focused on the possibility that the club’s proenvironmental initiatives could provide a competitive advantage over rival cities and positively influence local programming and behaviors.

Originality/value

The results of this study support the notion that fan characteristics may differ across various demographic and structural contexts and fans’ recognition that a club could leverage its community standing to promote proenvironmental action.

Details

International Journal of Sports Marketing and Sponsorship, vol. 24 no. 1
Type: Research Article
ISSN: 1464-6668

Keywords

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