Power and rent-seeking on boards: a case study of national sport federations in India

Abstract

ABSTRACT Rent-seeking refers to the activities of individuals or groups who act to increase their personal benefits at the expense of organizations or wider society. Due to the inherently damaging nature of rent-seeking and its prevalence on some sport boards, there is a need for researchers to examine how it emerges and persists. The purpose of this study is to investigate how power influences the rent-seeking activities of board members in Indian national sport federations. An embedded single case study design is adopted. Drawing on a four-dimensional model of power, the research finds that board members source and use the power of resources, the power of processes and the power of meaning to fuel their rent-seeking activities. The findings show that these three forms of power have a mutually reinforcing effect, while the power of the system creates the context in which the other dimensions are used. The findings offer new insight into how board members, motivated by personal gain, ensure that suboptimal organizational governance structures are preserved in sport. This study contributes theoretically by illuminating how different dimensions of power interact in rent-seeking processes. Practical recommendations are outlined for stakeholders who want to overcome rent-seeking.