Transnational venue management corporations and local embeddedness

Abstract

Purpose The case of the Mercedes-Benz Arena in Shanghai, China raises an important issue with respect to transnational venue management corporations embedding and operating in foreign markets. The purpose of this paper is to examine how Anschutz Entertainment Group (AEG) has implemented social embeddedness strategy to influence the management structure and enhance operational performance of the Mercedes-Benz Arena. Design/methodology/approach A case study approach was chosen to examine the social embeddedness of AEG through the Mercedes-Benz Arena in Shanghai. An in-depth interview was conducted with John Cappo, the President and CEO of AEG China, in April 2016. In addition, the relative news and interviews of leaders from AEG and AEG China over the past ten years was also collected. Qualitative content analysis of the data was conducted through a coding approach. All the materials were coded into three main categories based on three aspects of social embeddedness: local stakeholder relations, reputation and trust-building, cultural and institutional adaptation. Findings AEG has demonstrated how a transnational venue management corporation can successfully integrate social embeddedness strategy with the management structure and operational procedures of the Mercedes-Benz Arena in three ways. First is through the relationship between AEG and its partners in the joint venture, OPG in terms of the enforcement of the contract, the clear division of responsibilities, and the mutual understanding and use of relationship building. Second is the relationship between AEG and the local government in Shanghai. Third was adapting the structures of AEG to fit within local culture and institutional contexts. Originality/value The unique multi-stakeholder relationship inherent to venue management in China raises important questions with respect to transnational venue management corporations operating in foreign markets. The adaptation to the local context, as a moderating factor to the institutional exposure of a venue management company involves more challenging obstacles for non-local firms, compared to firms which are familiar with their institutional context. Understanding the key solutions in building relationships and trust with partners in joint venture and local government, as well as the key methods to adopt in local contexts, have applications across any number of sport industries.

Affective organizational commitment in global strategic partnerships: The role of individual-level microfoundations and social change

“…Liang (2006) reports on the strategic partnership between Fox and Apple, and through integrating production networks, how both firms benefited from enhanced value chain processes. Multi-stakeholder strategic partnerships can also generate mutual gains such as in AEG's partnership with the National Basketball Association in China to foster trust with the local government in Shangai and other local partners (Yao, & Schwarz, 2017). Given the variety of mutual benefits possible, Bamford, Gomes-Casseres & Robinson (2003) concluded strategic partnerships can fuel the success of a wide range of organisations-global strategic partnerships thus play a vital role in the modern era of inter-firm collaborations.…”

Potential impact of relational job design on future intentions of episodic volunteers in major sport events

“…Episodic volunteers at major sport events like the 7th CISM Military World Games are managed by governmental departments (including governmental sport departments and University Communist Youth League Committee) in China ( Yao and Schwarz, 2017 ; Wu, 2018 ). Volunteers may identify with these volunteer organizations out of respect for the Chinese government.…”

“…Contrary to expectations, perceived organizational support did not strengthen the association between relational job design and organizational commitment. One aim of holding major sport events in China is to facilitate international relations by conveying a positive image to people all over the world ( Yao and Schwarz, 2017 ; Gao et al, 2020 ). Unlike volunteers for other types of events, episodic volunteers in mega sport events might have a special motivation to show the strength of their country out of patriotism ( Vetitnev et al, 2018 ; Ahmad et al, 2020 ).…”

“…However, we assert that episodic volunteers, especially in mega sport events, can develop commitment. Taking China as an example, episodic volunteers of mega sport events are jointly managed by government sport departments and the University Communist Youth League Committee, which are both stable government-run volunteer organizations ( Yao and Schwarz, 2017 ; Wu, 2018 ). It is possible for volunteers to form commitment to these organizations affiliated with the government.…”

Using international sport events as part of a brand construction strategy

“…It is well-documented that the success of the internationalization efforts is not only a function of managerial skills but also a function of dealing correctly with the politics involved (Yao and Schwarz, 2017). Bringing international events such as F1, NBA, NFL, and MLB games involved the use of public funds.…”