IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v139y2022icp257-266.html
   My bibliography  Save this article

The strategic advantage of mature-stage firms: Digitalization and the diversification of professional sport into esports

Author

Listed:
  • Pizzo, Anthony D.
  • Kunkel, Thilo
  • Jones, Gareth J.
  • Baker, Bradley J.
  • Funk, Daniel C.

Abstract

Digital innovations provide mature organizations with opportunities to grow beyond their core industry and thereby compete with formerly tangentially related firms. In this research, we examine how mature organizations generate a competitive advantage when diversifying beyond their native industry. We address this question, withing the context of mature professional sport organizations that are affiliating with esports – organized video game competitions. Esports exemplify the growing number of digital innovations influencing the way organizations operate. Our study adds to existing knowledge by demonstrating how resources initially developed to compete with intra-industry organizations may transform into sources of competitive advantage when entering inter-industry competition. Drawing on strategic management perspectives based on the resource-based view (RBV) and knowledge-based view (KBV), we found that the experience-based tacit knowledge embedded in a firm (and its human capital) generates competitive advantage in these new industries. However, this knowledge is only as valuable as the versatility of the resources guiding its use. Our findings indicate that a firm’s versatile resources, when coupled with its knowledge, are the basis for generating a competitive advantage. Thus, as mature organizations diversify, they stand to benefit from identifying the versatile resources developed in their native competitive environment that represent strategic resources when challenging new competitors and using said resources in tandem with their knowledge-based competencies.

Suggested Citation

  • Pizzo, Anthony D. & Kunkel, Thilo & Jones, Gareth J. & Baker, Bradley J. & Funk, Daniel C., 2022. "The strategic advantage of mature-stage firms: Digitalization and the diversification of professional sport into esports," Journal of Business Research, Elsevier, vol. 139(C), pages 257-266.
    • Handle: RePEc:eee:jbrese:v:139:y:2022:i:c:p:257-266
    DOI: 10.1016/j.jbusres.2021.09.057
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296321007098
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2021.09.057?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    2. Eero Vaara & Richard Whittington, 2012. "Strategy as practice : Taking Social Practices Seriously," Post-Print hal-02276672, HAL.
    3. Ikujiro Nonaka & Georg von Krogh, 2009. "Perspective---Tacit Knowledge and Knowledge Conversion: Controversy and Advancement in Organizational Knowledge Creation Theory," Organization Science, INFORMS, vol. 20(3), pages 635-652, June.
    4. Lopez, Colin & Pizzo, Anthony D. & Gupta, Keshav & Kennedy, Heather & Funk, Daniel C., 2021. "Corporate growth strategies in an era of digitalization: A network analysis of the national basketball association’s 2K league sponsors," Journal of Business Research, Elsevier, vol. 133(C), pages 208-217.
    5. Funk, Daniel C. & Pizzo, Anthony D. & Baker, Bradley J., 2018. "eSport management: Embracing eSport education and research opportunities," Sport Management Review, Elsevier, vol. 21(1), pages 7-13.
    6. Klepper, Steven, 1997. "Industry Life Cycles," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 6(1), pages 145-181.
    7. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    8. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    9. Eero Vaara & Richard Whittington, 2012. "Strategy as practice : Taking Social Practices Seriously," Post-Print hal-02312709, HAL.
    10. Fernando F. Suarez & Stine Grodal & Aleksios Gotsopoulos, 2015. "Perfect timing? Dominant category, dominant design, and the window of opportunity for firm entry," Strategic Management Journal, Wiley Blackwell, vol. 36(3), pages 437-448, March.
    11. Art Sloan & Brian Bowe, 2014. "Phenomenology and hermeneutic phenomenology: the philosophy, the methodologies, and using hermeneutic phenomenology to investigate lecturers’ experiences of curriculum design," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1291-1303, May.
    12. Daniel C. Funk & Anthony D. Pizzo & Bradley J. Baker, 2018. "eSport management: Embracing eSport education and research opportunities," Sport Management Review, Taylor & Francis Journals, vol. 21(1), pages 7-13, January.
    13. Yu-Shan Chen & Chun-Yu Shih & Ching-Hsun Chang, 2012. "The effects of related and unrelated technological diversification on innovation performance and corporate growth in the Taiwan’s semiconductor industry," Scientometrics, Springer;Akadémiai Kiadó, vol. 92(1), pages 117-134, July.
    14. Liu, Yipeng & Meyer, Klaus E., 2020. "Boundary spanners, HRM practices, and reverse knowledge transfer: The case of Chinese cross-border acquisitions," Journal of World Business, Elsevier, vol. 55(2).
    15. Santoro, Gabriele & Vrontis, Demetris & Thrassou, Alkis & Dezi, Luca, 2018. "The Internet of Things: Building a knowledge management system for open innovation and knowledge management capacity," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 347-354.
    16. Seo, Yuri, 2016. "Professionalized consumption and identity transformations in the field of eSports," Journal of Business Research, Elsevier, vol. 69(1), pages 264-272.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andreasson, Martin & Karabag, Solmaz Filiz & Simonsson, Johan & Agarwal, Girish, 2024. "Dynamics of related and unrelated digital diversification in established firms: Strategies, programs, process, and outcomes," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    2. Jang, Chaeyun & Kim, Seongcheol, 2023. "Extensions of intellectual property in Media Industry: The Korean case," 32nd European Regional ITS Conference, Madrid 2023: Realising the digital decade in the European Union – Easier said than done? 277976, International Telecommunications Society (ITS).
    3. Xiao Yan & Xiaoping Cheng, 2023. "Leveraging Incumbents’ Advantages at Their Technology-Based New Business Initiation Stage," International Journal of Business and Management, Canadian Center of Science and Education, vol. 17(11), pages 1-22, February.
    4. Md. Emam Hossain & Subarna Biswas, 2024. "Technology acceptance model for understanding consumer’s behavioral intention to use artificial intelligence based online shopping platforms in Bangladesh," SN Business & Economics, Springer, vol. 4(12), pages 1-61, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Scuotto, V. & Le Loarne Lemaire, S. & Magni, D. & Maalaoui, A., 2022. "Extending knowledge-based view: Future trends of corporate social entrepreneurship to fight the gig economy challenges," Journal of Business Research, Elsevier, vol. 139(C), pages 1111-1122.
    2. Marcelo Leon & Miriam Vanessa Hinojosa-Ramos & Alan León-Lopez & Simone Belli & Cristian López-Raventós & Hector Florez, 2022. "eSports Events Trend: A Promising Opportunity for Tourism Offerings," Sustainability, MDPI, vol. 14(21), pages 1-14, October.
    3. Cunningham, George B. & Fairley, Sheranne & Ferkins, Lesley & Kerwin, Shannon & Lock, Daniel & Shaw, Sally & Wicker, Pamela, 2018. "eSport: Construct specifications and implications for sport management," Sport Management Review, Elsevier, vol. 21(1), pages 1-6.
    4. Hossain, Md Afnan & Akter, Shahriar & Yanamandram, Venkata, 2021. "Why doesn't our value creation payoff: Unpacking customer analytics-driven value creation capability to sustain competitive advantage," Journal of Business Research, Elsevier, vol. 131(C), pages 287-296.
    5. Ferreira, João J. & Fernandes, Cristina I. & Guo, Ying & Rammal, Hussain G., 2022. "Knowledge worker mobility and knowledge management in MNEs: A bibliometric analysis and research agenda," Journal of Business Research, Elsevier, vol. 142(C), pages 464-475.
    6. Freek Vermeulen, 2018. "A basic theory of inheritance: How bad practice prevails," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1603-1629, June.
    7. Lopez, Colin & Pizzo, Anthony D. & Gupta, Keshav & Kennedy, Heather & Funk, Daniel C., 2021. "Corporate growth strategies in an era of digitalization: A network analysis of the national basketball association’s 2K league sponsors," Journal of Business Research, Elsevier, vol. 133(C), pages 208-217.
    8. Atul Arun Pathak & George Kandathil, 2020. "Strategizing in small informal retailers in India: Home delivery as a strategic practice," Asia Pacific Journal of Management, Springer, vol. 37(3), pages 851-877, September.
    9. Degbey, William Y. & Pelto, Elina, 2021. "Customer knowledge sharing in cross-border mergers and acquisitions: The role of customer motivation and promise management," Journal of International Management, Elsevier, vol. 27(4).
    10. Santoro, Gabriele & Mazzoleni, Alberto & Quaglia, Roberto & Solima, Ludovico, 2021. "Does age matter? The impact of SMEs age on the relationship between knowledge sourcing strategy and internationalization," Journal of Business Research, Elsevier, vol. 128(C), pages 779-787.
    11. Filippo Corsini & Rafael Laurenti & Franziska Meinherz & Francesco Paolo Appio & Luca Mora, 2019. "The Advent of Practice Theories in Research on Sustainable Consumption: Past, Current and Future Directions of the Field," Sustainability, MDPI, vol. 11(2), pages 1-19, January.
    12. Arie Y Lewin & Silvia Massini & Carine Peeters, 2020. "Absorptive capacity, socially enabling mechanisms, and the role of learning from trial and error experiments: A tribute to Dan Levinthal’s contribution to international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1568-1579, December.
    13. Zhang-Zhang, YingYing & Rohlfer, Sylvia & Varma, Arup, 2022. "Strategic people management in contemporary highly dynamic VUCA contexts: A knowledge worker perspective," Journal of Business Research, Elsevier, vol. 144(C), pages 587-598.
    14. Shan, Wei & Qiao, Tong & Zhang, Mingli, 2020. "Getting more resources for better performance: The effect of user-owned resources on the value of user-generated content," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    15. Deist, Maximilian K. & McDowell, William C. & Bouncken, Ricarda B., 2023. "Digital units and digital innovation: Balancing fluidity and stability for the Creation, Conversion, and Dissemination of sticky knowledge," Journal of Business Research, Elsevier, vol. 161(C).
    16. Stienstra, Miranda, 2020. "The determinants and performance implications of alliance partner acquisition," Other publications TiSEM 7fdee0c2-d4d2-4f5b-95e3-2, Tilburg University, School of Economics and Management.
    17. S. Ignat'ev V. & С. Игнатьев В., 2018. "Оценка И Выбор Форм Государственного Регулирования Интенсификации Экономического Роста // Evaluation And Choice Of Forms Of State Regulation Of Intensification Of Economic Growth," Финансы: теория и практика/Finance: Theory and Practice // Finance: Theory and Practice, ФГОБУВО Финансовый университет при Правительстве Российской Федерации // Financial University under The Government of Russian Federation, vol. 22(1), pages 22-31.
    18. Bettina Bouchayer, 2023. "La signification de l'événement - une question de temps ? Une approche heideggérienne pour résoudre la coexistence de deux ontologies temporelles différentes," Post-Print hal-04487398, HAL.
    19. Elbasha, Tamim & Avetisyan, Emma, 2018. "A framework to study strategizing activities at the field level: The example of CSR rating agencies," European Management Journal, Elsevier, vol. 36(1), pages 38-46.
    20. Saeed Samiee & Constantine S. Katsikeas & G. Tomas M. Hult, 2021. "The overarching role of international marketing: Relevance and centrality in research and practice," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(8), pages 1429-1444, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:139:y:2022:i:c:p:257-266. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.