A Case Study of a Professional Soccer League (Psl) Club in South Africa
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SOCIAL CAPITAL AND ORGANISATIONAL PERFORMANCE: A CASE STUDY OF A PROFESSIONAL SOCCER LEAGUE (PSL) CLUB IN SOUTH AFRICA by TALENT MOYO Thesis submitted in fulfilment of the requirements for the degree Master of Technology: Sport Management In the Faculty ofBusiness and Management Sciences At the CapePeninsulaUniversity of Technology Supervisor: Professor S.E.H. Davies Co-supervisor:Mr E. Joubert Mowbray November2015 CPUT copyright information The dissertation/thesis may not be published either in part (in scholarly, scientific or technical journals), or as a whole (as a monograph), unless permission has been obtained from the University DECLARATION I, Talent Moyo, declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the Cape Peninsula University of Technology. 4 November 2015 Signed Date i ABSTRACT This research investigated the relationship between Social Capital created by Corporate Social Responsibility (CSR) initiatives and organisational performance at Ajax Cape Town FC a professional football club in the South African Premier Soccer League (PSL). A mixed methods approach was selected for data collection and interviews, questionnaires and content analysis were the tools used to collect data.The data collected suggested that Ajax Cape Town FC employed CSR initiatives that successfully created social capital, and consequently enjoyed various benefits from these activities. The CSR activities facilitated access to the club’s target market, developed and improved mutually beneficial relations with the community and subsequently Ajax Cape Town FC experienced increased trust, a positive brand image and stronger loyalty from their fans and the broader community. The outcomes of this study providedan insight into a South African professional football club and demonstrate how CSR initiatives can be used to successfully improve organisational performance. ii ACKNOWLEDGEMENTS I wish to thank: . My Family for their continuous support and love . My supervisors for their patience and guidance iii TABLE OF CONTENTS Declaration i Abstract ii Acknowledgements iii List of Tables vii List of Figures viii List of Appendices ix Glossary x CHAPTER ONE: INTRODUCTION 1.1 Introduction 1 1.2 Statement of research problem 1 1.3 Background to the research problem 1 1.4 Research questions 1 1.5 Objectives of the research 2 1.6 Delineation of research 2 1.7 Significance of research 2 1.8 Summary of Chapter 3 CHAPTER TWO: LITERATURE REVIEW 2.1 Introduction 4 2.2 Sport 5 2.2.1 Professional Sport 6 2.3 The Relation Between Sport and Development 8 2.3.1 Sport and Development 8 2.3.2 Sport for Development 9 2.3.3 Development through Sport 10 2.4 Professional Sport Organisations 11 2.4.1 Organisational Performance 15 2.5 The Balanced Score Card and the BCG Matrix in Success Measurement 18 2.5.1 Additional Techniques in Success Measurement 21 2.6 Corporate Social Responsibility 23 2.6.1 Benefits and Limitations of Corporate Social Responsibility 25 2.6.2 Corporate Social Responsibility in Professional Sport 27 2.6.3 Measuring CSR 29 2.6.3.1 The Virtue Matrix 30 2.7 Social Capital 32 2.7.1 Bonding, Bridging and Linking Social Capital 34 2.7.2 Social Capital in Sport 35 2.8 The link between Social Capital and CSR 37 2.8.1 FC Barcelona 38 iv 2.8.2 Chelsea FC 40 2.9 The Premier Soccer League 42 2.10 Ajax Cape Town Football Club 43 2.11 Corporate Social Responsibility of Ajax Cape Town FC 44 2.12 Summary of Chapter 44 CHAPTER THREE: RESEARCH DESIGN ANDMETHODOLOGY 3.1 Introduction 46 3.2 Mixed Method Research Approach 46 3.3 Qualitative Research Approach 48 3.4 Quantitative Research Approaches 48 3.5 Research Design 49 3.5.1 Cross-sectional/survey research design 49 3.5.2 Case Study research design 50 3.6 Data Collection Strategies 50 3.6.1 Content Analysis 51 3.6.2 Interviews 52 3.6.2.1 Advantages and Disadvantages 53 3.6.3 Questionnaires 54 3.6.3.1 Advantages and Disadvantages 55 3.6.3.2 Triangulation 55 3.7 Data Analysis and Interpretation 56 3.8 Qualitative Data Analysis 56 3.9 Quantitative Data Analysis 57 3.10 Validity 57 3.11 Ethical considerations 60 3.112 Summary of Chapter 60 CHAPTER FOUR: FINDINGS 4.1 Introduction 61 4.2 Questionnaires 61 4.2.1 Stakeholder Questionnaire 61 4.2.1.1 Demographics 61 4.2.1.2 Ajax Cape Town FC Programmes 66 4.2.1.3 Benefits of the Ajax Cape Town FC Programmes for the Community 70 4.2.2 Ajax Cape Town FC Players Questionnaires 72 4.2.2.1 Demographics 73 4.2.2.2 Ajax Cape Town CSR Programmes 75 4.2.2.3 Social Capital 76 4.2.2.4 Benefits of the CSR Programmes for Ajax Cape Town FC 78 4.3 Coding 79 4.3.1 Coding of Interviews 79 4.4 Outcome of Interviews 80 4.4.1 Aims and Objectives of Ajax Cape Town FC 80 4.4.2 Ajax Cape Town FC’s Engagement in CSR Programmes 82 4.4.3 Aims and Objectives of Corporate Social Responsibility (CSR) 83 Programmes 4.4.4 Mutually Beneficial Relationships built from programmes 85 4.4.5 Benefits of Mutually Beneficial Relationships 85 4.4.6 Is Social Capital being created through these programmes? 86 v 4.4.7 Does this Social Capital impact on the performance of the Organisation? 87 4.5 Content Analysis 88 4.5.1 Ajax Cape Town FC Development 89 4.5.2 Tournaments 91 4.5.3 Community Scheme Programmes 92 4.5.4 Summary of Chapter 94 CHAPTER FIVE: DISCUSSION 5.1 Introduction 95 5.2 Creating Social Capital 95 5.3 Effect of Social Capital on Organisational Performance 97 5.4 Social Capital for a Financially and Socially Successful 99 Organisation 5.5 Measuring Social Capital 102 5.6 The role of Social Capital in Professional Sport 103 5.8 Summary of Chapter 104 CHAPTER SIX: RECOMMENDATIONS AND CONCLUSION 6.1 Introduction 105 6.2 Areas of Concern 105 6.3 Recommendations 105 6.3.1 Evaluating Success of CSR Activities 105 6.3.2 Players’ Lack of Understanding of Significance of CSR 108 Programmes 6.3.3 Community Scheme Employees 108 6.3.4 Future Research 109 6.4 Conclusion 109 REFERENCES 111 vi List of Tables Table 1: Theories that can be applied to Sport Organisations Table 2: Characteristics of profit maximisers and utility maximisers Table 3: Strengths and weaknesses of mixed research approach Table 4: Advantages and disadvantages of interviews Table 5: Advantages and disadvantages of using questionnaires Table 6: Examples of Validity in Quantitative and Qualitative Research Table 7: Problems and issues addressed by Ajax Cape Town FC’s CSR programmes Table 8: Social Capital created through these programmes Table 9: Benefits for the community from the Ajax Cape Town FC CSR Programmes Table 10: Effects of Ajax Cape Town FC CSR Programmes Table 11: Most important objectives of the Ajax Cape Town FC CSR programmes Table 12: Creation of Social Capital Table 13: Benefits of CSR Programmes for Ajax Cape Town FC Table 14: Most important benefits of CSR Programmes for Ajax Cape Town FC Table 15: Coding of interviews Table 16: Ajax Cape Town FC ABSA PSL League standing for last five seasons Table 17: Ajax Cape Town FC Community Scheme Table 18: The strategic benefits of CSR vii List of Figures Figure 1: Sport Management Model Figure 2: Framework to show flow of Organisation’s aim to Organisational performance Figure 3: The Balanced Score Card Figure 4: The Boston Consulting Group Matrix Figure 5: A matrix for identifying and analysing evaluative questions Figure 6: The Pyramid of Corporate Social Responsibility Figure 7: The role of CSR in corporate performance Figure 8: The Virtue Matrix Figure 9: Modelling a theory of social capital Figure 10: Social Capital formation through Sport Business Figure 11: Chelsea FC’s strategic CSR Model Figure 12: Triangulation Figure 13: The Age Range of the Stakeholder Respondents Figure 14: Number of male andfemale stakeholder respondents Figure 15: Racial demographics of respondents Figure 16: Highest Qualification achieved by stakeholder respondents Figure 17: Participation in sport by stakeholder participants Figure 18: Access to sport facilities for stakeholder respondents Figure 19: Sports participated in by stakeholder respondents Figure 20: Stakeholders participation in Ajax Cape Town FC programmes Figure 21: Social Capital developed by Ajax Cape Town FC CSR programmes viii Figure 22: Range of the Ajax Cape Town FC Players’ ages Figure 23: Frequency of Participation in Ajax Cape Town FC CSR Programmes Figure 24: Achievementof CSR Objectives Figure 25: The creation of Social Capital through Ajax Cape Town FC CSR Programmes Figure 26: Players who graduated from the development programme Figure 27: Proportion of Ajax Cape Town FC development players versus imported players presently at the club Figure 28: Fluctuations in Ajax Cape Town FC’s performance in the ABSA PSL for the last five seasons Figure 29: Social Capital formation through Sport Business Figure 30: A matrix for identifying and analysing evaluative questions The Ajax Cape Town Kick n’ Learn Soccer Samba List of Appendices Appendix A: Interview Schedules Appendix B: Dr Tonts’s Questionnaire Appendix C: Participants Questionnaire Appendix D: Ajax Cape Town FC Staff Questionnaire Appendix E: Permission To Use Questionnaire Appendix F: Permission To Use Ajax Cape Town As Case Study Appendix G: Ethical Clearance ix Glossary BCG Matrix – Boston Consulting Group Matrix BSC – Balanced Score Card CAS – Court of Arbitration for Sport CSR – Corporate Social Responsibility ESG – Environmental, Social Governance FC – Football Club MDG – Millennium Development Goals MSCI – Morgan Stanley Capital International PSL – Premier Soccer League SAIDS – South Africa Institute for Drug free Sport SASCOC – South African Sports Confederation and Olympic Comittee UNICEF – United Nations International Children’s Emergency Fund WADA – World Anti-Doping Agency x CHAPTER 1 INTRODUCTION 1.1.