1. National University of Ireland, Maynooth
Prof. Philip Nolan
29 September2011
Human Capital Selection & Development as Drivers of Performance & Transformation: Lessons from Global Sport
Peter Mc Namara
Professor of Management
National University of Ireland, Maynooth
National University of Ireland, Maynooth

2. Research Questions
Do business model design choices have differential value creation & appropriation performance outcomes?
Can change in business model design choices, change performance outcomes?
How can resource constrained firms re- configure their business models successfully?

3. 2 Studies Business Model Design and Performance
Panel of English Premiership Football
Business Model Transformation through
Patchwork Quilt of Practice Identification & Absorption
Qualitative case
Irish Rugby Football Union in context of
European Rugby Professionalisation

4. Study 1: Business Model Typologies and Performance

5. Business Model Typologies and Performance Outcomes
McNamara, Peck and Sasson, Long Range Planning, December 2013

6. English Premiership Dataset
Value Creation
Points at end of season
Value Appropriation
Return on Sales
Business Model dimensions
External Labor Market
A/B Talent: player transfer price
A = above median
B = below median
Internal labor market
Shared team experience
Nbr of actual playing minutes players in team have played with each other

7. Business Models in Premiership
McNamara, Peck and Sasson, Long Range Planning, December 2013

8. Modeling & results
Do business models have different performance outcomes?
Comparison of means
OLS
Value creation:
A, experienced outperform all others
A inexperienced, outperforms B inexperienced
Value capture:
A, inexperienced underperforms all others
What dimensions are associated with performance changes?
Value creation: player experience, change in player experience
Value appropriation: player experience

9. Value Capture in Premiership

10. Value Creation in Premiership
McNamara, Peck and Sasson, Long Range Planning, December 2013

11. Business Models and Performance
Multiple business models can generate value creation & appropriation
Inexperienced teams are a transitory business model state
‘Valley of uncertainty’ must be navigated to arrive at highest joint performance outcomes:
A talent, experienced
External market for talent costly & outcomes uncertain

12. Study 2: Business Model Transformation for a Resource Constrained Firm

13. Patchwork Quilt of Role Model Identification & Practice Absorption
Learn locally:
Lower search costs
Higher risk of competitive retaliation
Learn externally:
We do not know what will work
Thus experiment
Patchwork quilt approach to
Role model identification
Practice absorption

14. Dataset and context European Rugby moves to professional era
Challenges:
How to organize our national and club teams
What is our value proposition?
How do we develop resources and capabilities?
How do we make clubs and national teams economically sustainable?
Dataset:
33 interviews with administrators, players and coaches
Experience before, during and after change
Focus of interviews:
How role models were identified
How new practices were absorbed

15. Role Modeling Strategy in BMI Transformation Process
BMI triggered by industry level change
BMI was risky: investment intensity & change of processes
Role modeling as a method of experimental BM development
Identify appropriate role models
Manage process of practice absorption
Performance outcomes
Financial from losses to profit even since 2007/08; income + 35%
Heineken Cup Ireland England France Wales
Wins
Runner up
O’Donnell, Ryazanova & Mc Namara, Research Center

16. Heart of transformation
Focus on customer value proposition
Social identity rather than victory through best resources
Focus limited resources on practice absorption
Competitive proximity
Willingness to learn through experimentation
Failure must be learnt from
Balanced approach to risk
Resources are limited, buying is a limited option

17. Strategic Center in Role Model Choice
Role of Center in Role Modeling & Development

18. Process of Absorption of Practices
Extraction of value from investments
Absorb best playing practices & managerial processes
External role model identification
Internal learning from externally hired staff
Delivering customer value: competitive heterogeneity
Passion through competition with strong opposition
Develop unique local identities
Social identity development
Social similarity through proximity
To customers and co-workers
Limit number of external workers,
social integration vital

19. Practice absorption Extracting Value from Social Identity
Management structures absorbed from external market
Adapted to local conditions
Dividing the pie, learning from:
Similar governance structures
Anti models: what do we not want to be?

20. Funding acknowledgements
IPSE
Innovation Policy Simulation for the Smart Economy
IPSE is funded under PRTLI Cycle 5 and co- funded under the European Regional Development Fund
ARCH
Applied Research Center for Connected Health
Enterprise Ireland
Industrial Development Authority of Ireland
Irish National Development Plan

21. Contact Peter.mcnamara@nuim.ie
PhD researcher, IPSE sports business models
Research Team: