Emerging Patterns of Inter-organizational Relations: A Network Perspective of North American Professional Sport Leagues

Abstract

Over the last twenty five years, North America’s major professional sport leagues have entered into new types of inter-organizational relations. These linkages, in the form of strategic alliances, joint ventures, and partnerships have offered considerable competitive advantages to these leagues. For example, these relationships have enabled the National Football League, the National Hockey League, the National Basketball Association and Major League Baseball to penetrate new markets, to enhance their legitimacy, to diversity into merchandising and licensing, and to increase their visibility in North America and abroad. The purpose of this paper is threefold. First, it uncovers the antecedents to the formation of these relations. Next, it explores the strategic rationales for these new types of linkages and, finally, the impact of these new relationships upon the structure of the network which encompasses these organizations is discussed. Examples of the new types of relations which bind professional sport leagues to broadcasters, corporate sponsors and merchandising and licensing firms are provided. In addition, the factors which have facilitated the emergence of these relations at this particular point in time are discussed. The network perspective is the conceptual framework used to enhance our understanding of the strategies used by the leagues to manage their interorganizational interdependence and strengthen their competitive position within the professional sport industry.