Value Creation in Experience-Based Networks: A Case Study of Sport-Events in Europe

Abstract

Sporting events struggle to be economically, socially, and environmentally sustainable (Pitts and Stotlar, 2002), either through favourable business conditions (Porter, 1980) or through their internal resources and capabilities (Wernerfelt, 1984; Barney, 1991). To deal with these challenges, organisations tend to turn to cooperation and networking (Achrol, 1997; Achrol & Kotler, 1999; Dyer and Singh, 1998; Nohria & Zaheer, 2000; 2006). In particular, Gulati (1999: 399) claims that a firm’s network might offer ‘network resources that are the source of valuable information for firms.’ An example of such resources is the building of routines for sharing knowledge to enhance values when any firm in isolation cannot generate the value (Dyer & Singh 1998; Moller and Rajala 2007; Gulati 1999). Despite this increase in interest and knowledge regarding value creation in networks, especially for sporting events (e.g., Prebensen, 2010), few studies have actually explored how and why these networks come into existence. Consequently, this chapter explores business nets, e.g., sporting events, with particular focus on the network structure and the purpose of participating in the network. The research questions are: how and why do organizations, e.g., sporting events, cooperate in a network?