Previous research has examined the effect of changes in upper management positions on actual organizational performance; however, the influence of leadership changes on performance expectations has been largely neglected. This gap in the literature is surprising given that failure to meet expectations leads to dismissal. The purpose of the present research is to analyze how coaching changes affect expectations of a sports team’s performance. Betting lines are used as performance expectations because they are unbiased forecasts of game outcomes. This study uses data from 13 seasons of the German Football Bundesliga. Significant positive timelagged effects on performance expectations are evident when examining underlying expected performance. These positive effects are evident 8 weeks after the leadership change, indicating that new leaders are expected to need some time before significant performance improvements are expected to occur.
Brian P. Soebbing, Pamela Wicker and Daniel Weimar
Matthew Juravich, Steven Salaga and Kathy Babiak
For profit-driven professional sport organizations, organizational performance is argued to be measurable in two ways. One approach considers the financial performance of an organization over some duration of time by measuring the profits generated by a team, primarily through ticket sales and
Per G. Svensson, Seungmin Kang and Jae-Pil Ha
develop a set of hypotheses regarding the collective relationships between human resources capacity, shared leadership, organizational performance, and innovative work behavior. We test our proposed model through structural equation modeling, which allows us to get more adequate estimates of the direct
Brian P. Soebbing and Marvin Washington
If the team changes the coach, does the team’s performance change? From the literature on leadership succession and organizational performance, three perspectives have emerged that seek to answer this question: common sense, vicious cycle, and ritual scapegoat. We extend these leadership perspectives by drawing on organizational theory to explain leadership succession and organizational performance in National Collegiate Athletic Association Division Football Bowl Subdivision football. We develop a model and use the Arellano and Bond (1991) linear dynamic panel data estimator to examine this relationship from the 1950–1951 season to the 2008–2009 season. Our results show that organizational performance decreases initially following a leadership change. However, as a coach’s tenure increases at the university, organizational performance improves. This offers some support for vicious cycle theory and suggests that sport managers should do a better job of managing performance expectations following a coaching change as our results show that coaching changes lead to a drop in performance.
Florian Hemme and Marlene A. Dixon
James Park has been hired as the new CEO by the board of directors of GoSports Inc., a large national sporting goods retailer, which has been battling economic and internal issues over the previous years. Despite Park’s experience at the helm of large companies in need of profound strategic and structural change, in his new position at GoSports he has been “butting heads” with a powerful collective of executives unhappy with the hire and threatened by the new CEO’s accolades. To complicate matters, rumor has it that the decision to hire Park was far from unanimous, with various factions vying for control in the company, waiting for a chance to fill the power vacuum a quick departure by Park would leave behind. After two weeks with the company, Park is called before the board of directors to report on the progress made and how he plans to return GoSports to its former glory.
Shannon Kerwin, Joanne MacLean and Dina Bell-Laroche
The theory of practicing values may provide valuable insight into the role of organizational values in sport organizations. This is particularly relevant in the nonprofit sport sector where managers operate with limited budgets and organizations may subscribe to specific ethical-social values related to organizational performance. The purpose of this study was to explore the influence of organizational values on the performance of nonprofit sport organizations and the possible mediating effect of employing a management-by-values approach. Online questionnaires were collected from 24 national sport organizations, with a total sample of 103 participants. Results indicate management by values fully mediates the influence of ethical-social organizational values on organizational performance. These results are explained using the theory of practicing values, which emphasizes the need to intentionally manage values within sport organizations. Implications for research and practice are presented.
Dina Bell-Laroche, Joanne MacLean, Lucie Thibault and Richard Wolfe
This study examined sport leaders’ perceptions of the use of stated values in the management and performance of their organization. Qualitative data were collected from nine Canadian national sport organizations (NSOs) in a multiple-case studies design, involving analysis of interview transcripts. Results indicated that while many of the NSOs operated from a traditional management by objectives approach, they perceived management by values (MBV) as being important and contributing to enhanced organizational performance. Leaders indicated that more efforts to engage staff members in developing core organizational values and to strategically use values in day-to-day management practice were required. A 4-I Framework describing how an NSO can progress through different stages of strategically using values in management practice was developed. NSO leaders also voiced an interest in embedding organizational values into NSO strategic and other planning processes.
Stephanie Dohrn, Yvette P. Lopez and Gilles Reinhardt
This article examines the impact of leader succession on organizational performance. We argue that both time and size of program are critical factors that need to be considered to appropriately determine the impacts of the leader succession on performance. We focus our analysis on the National Collegiate Athletic Association (NCAA) Football Bowl Subdivision (FBS) and examine the effect of performance-related coaching firings on on-field performance (win-loss percentage, Sagarin rating, Sagarin rank) and financial performance (team revenue). We cluster teams into three categories based on revenue and analyze team performance following leader succession after the first, second, and fourth year following the change. While most studies in this area report findings consistent with vicious cycle theory or ritual scapegoating, our findings offer primary support for common sense theory and ritual scapegoating, contingent on time and the size of the program as determined by team revenue.
Alison J. Doherty and Packianathan Chelladurai
The article focuses on the management and impact of cultural diversity in sport organizations. It is proposed that the potentially constructive or destructive impact of cultural diversity is a function of the management of that diversity, which is ultimately a reflection of organizational culture, or “how things are done around here.” Organizational culture is described along a continuum of valuing similarity and diversity in the organization. It is argued that the benefits of cultural diversity (e.g., creativity, challenge, constructive conflict) will be realized when an organizational culture of diversity underlies the management of that diversity. These benefits are heightened when the situation dictates a high degree of task interdependence and complexity. Implications for increasing cultural diversity and developing an organizational culture that values that diversity, as a social responsibility and a contributing force to organizational performance, are discussed.
Michael Hutchinson, Calvin Nite and Adrien Bouchet
Amid evidence of limited financial benefit, universities in the United States continue increasing their commitment to the NCAA’s highest level of competition. Consequently, it is believed that such behavior is the result of more intangible motivations by university decision makers. Using escalation of commitment theory as a framework, the authors explored social and structural determinants of increasing commitment, specifically examining the role of organizational status, former performance, and side-bets in commitment escalation. Applying a collective case study approach, the authors examined institutions (N = 10) having increased their commitment to Division I athletics within the last 10 years. Serving as the primary data source, participants (n = 35) included decision makers involved in the implementation of escalation initiatives. QSR International’s NVivo 10 software was employed for data analysis in the application of a three-step coding process. Findings revealed unique theoretical advancement in the emergence and role of organizational status in commitment escalation. Further, decision makers identified the impact of former organizational performance in the decision to increase athletic commitment. Finally, findings revealed the increased significance of organizational side-bets serving as the sole means for sustaining course of action commitment.