The impact of coopetition-based open innovation on performance in nonprofit sports clubs

Abstract

Research question: This study conceptualizes and tests the impact of a coopetition-based open innovation approach on organizational performance of nonprofit sports clubs. In particular, it examines the effect of collaborations with competitors (i.e. coopetition) on the organizational performance of clubs via both use of outside knowledge and the adoption of new services, processes, and business models (i.e. organizational-level innovations). Research methods: A statewide online survey with 292 members of the board of directors of nonprofit sports clubs was conducted in Germany (Saarland). The survey used valid and reliable scales and considered self-reported financial stability and membership development as organizational performance indicators. Structural equation modeling was applied to test the mediation model. Results and findings: The proposed coopetition-based open innovation model has a good model fit. Engagement in coopetition has a positive effect on organizational performance via two sequential mediators: use of outside knowledge and innovation implementation. In addition, use of outside knowledge has a direct positive effect on organizational performance. Implications: Nonprofit sports clubs should take advantage of collaborations with competitors and exploit external knowledge to the best of their abilities. The adoption of new services, processes, and business models on the organizational level helps nonprofit sports clubs stay competitive in an increasingly contested sports services market. The study provides both theoretical and managerial implications that help sports clubs innovate and increase organizational performance.