Internet and competitive advantage in Australian professional sport organisations

The electronic revolution has proven to be a powerful stimulus for change in business practice. As a business tool however, the Internet must endure the same scrutiny under which other business activities are placed. If the use of the Internet in business is a sound strategy, then it must contribute toward competitive advantage. The sport business industry has not been isolated from the vagaries of Internet applications. Moreover, as the industry has become more competitive, forcing sporting organisations towards unprecedented levels of accountability and business practice, the Internet has been increasingly seen as a potential \u27holy grail\u27 for sport organisations struggling for revenue (Stewart & Smith, 1999). This research is a response to these pressures. It seeks to identify Internet based opportunities for competitive advantage, and to provide strategies and recommendations for the successful use of the Internet in Australian professional sport organisations. In realising this objective, a newly developed and integrated Business Activity Model has been constructed. The model assists in the identification of specific Internet based competitive advantage strategies, and provides a theoretical framework for this research. The Business Activity Model conceptualises, for the first time, the relationships between the value chain, constituents of electronically enabled competitive advantage, and the Internet. With Australia\u27s limited group of fully professional sports capable of sustaining the human resources and budgets necessary to implement comprehensive e-commerce strategies, the organisations selected to participate in this research represent the pinnacle of Australian professional sport clubs. Specifically, the 55 clubs competing in the Australian Football League (A.F.L.), National Basketball League (N.B.L.), National Rugby League (N.R.L.), and National Soccer League (N.S.L.) constituted the research sample and population. In concert with the 87% participation rate, sampling approached a census. A telephone-administered survey, based primarily on the rigorously tested instrument developed by Sethi and King (1994), was employed for data collection. This research employs a comprehensive set of descriptive statistics, and is bolstered by a confirmatory and an exploratory factor analysis, undertaken on one component of the data. The outcome of this research was the identification of seven practical recommendations for Australian professional sport organisations seeking to improve competitive advantage via the Internet. These recommendations were based on an inventory of the \u27gaps\u27 between the strategies proposed by the literature, and the practices of the sample, and relate to both overall Internet strategy, and specific web site applications. The development of the new Business Activity Model and the identification of key online strategy themes support and complement these recommendations. An examination of variations in the practices of participating organisations, and some comparisons against United States sporting organisations, also provides depth and context to the findings. This research provides a platform for sport managers to effectively harness the potential of the Internet, through their web sites in particular, and realise significant competitive advantages. The Business Activity Model provides managers in all industries with a tool for the detection and understanding of potential elements of competitive advantage, and incorporates all activities critical to business in the new digital economy. Seven practical recommendations for improved online performance based on identified competitive advantage and strategies fulfils the primary objective of this research. E-commerce continues to grow at astronomical rates, and with the Internet poised to become the life-blood of 21st century sporting organisations, these recommendations will assist managers in their ongoing search for competitive advantage