I NTERNATIONELLA H ANDELSHÖGSKOLAN HÖGSKOLAN I JÖNKÖPING If You Want to Catch up with the Train, You’ll Have to Pay - A study of Swedish elite hockey organizations that are facing commercialization Master Thesis within Business Administration Authors: Åsa Elfström Anna Nilsson Tutor: Ethel Brundin Jönköping May 2006 Master Thesis in Business Administration Title: If You Want to Catch up with the Train, You’You’llll Have to Pay: A study of Swedish elite hockey organizations that are facing commercialization AuthorAuthorssss:::: Åsa EElfströmlfström Anna Nilsson Tutor: Ethel Brundin Date : 20062006----00005555----19191919 Subject terms: Commercialization, NonNon----profit,profit, Organization, Structure, Areas of Responsibility, Decision Making, Information and Communication, Motivation, Hockey Abstract Research Questions: Following questions will be looked at from a management perspective in the researched elite hockey clubs: (1) How has the commercialization affected the areas of responsibility? In regards to areas of responsibility: (a) How has the commercialization affected the decision making? (b) How has the commercialization affected the information and communication? (c) How has the commercialization affected the motivation? In addition, we need to find out the overall structure of the clubs and the managers’ view on commercialization in non-profit organizations. Therefore we need to add two more research questions: (2) In what respect is the organizational structure experienced in a different way today? and (3) How has the commercialization changed Swedish hockey clubs? Purpose: The purpose of this thesis is to create an understanding about how managers in Swedish elite hockey clubs experience the assumed adjustments in organizational structure and areas of responsibility when turning into more commercial organizations. Method: With an interpretive hermeneutic approach used in the sense of a qualitative study, we explain how the managers of five hockey clubs within Elitserien experience the adjustments when turning into more commercial organizations. The qualitative study consisted of a number of personal and phone interviews in order to collect the empirical data. Results: The main implication of the commercialization of Swedish hockey is that it has created conflicts in the daily operations, caused by the contradictions between commercial and non-profit activities. In addition, the organizational structure has in general become more professional with an increasing amount of distinct areas of responsibility. 2 Preface We would like to send great thanks to the respondents; Claes-Göran Wallin, Bengt Kinell, Fredrik Stillman, Mike Helber, Johan Hemlin, Peter Nyberg, Tommy Engström, and Jan Simons. We greatly appreciate their contribution and interest in our study. We would also like to thank our supervisor Ethel Brundin at Jönköping International Business School that always gave us good advices. ____________________ ____________________ Åsa Elfström Anna Nilsson 3 Contents 1 The Game is on Tonight… .................................................... 6 1.1 Problem Discussion .......................................................................6 1.2 Purpose .........................................................................................7 1.3 Disposition .....................................................................................8 2 Theoretical Framework.......................................................... 9 2.1 Structure in Commercial and Non-profit Organizations..................9 2.2 Areas of Responsibility ................................................................ 11 2.2.1 Decision Making................................................................ 13 2.2.2 Information and Communication ....................................... 15 2.2.3 Motivation ......................................................................... 16 2.3 The A-DIM Model......................................................................... 18 2.3.1 Research Questions.......................................................... 19 3 Methodology......................................................................... 20 3.1 Knowledge Theory....................................................................... 20 3.2 Hermeneutic Approach – Interpretive .......................................... 21 3.3 Applied Qualitative Method.......................................................... 22 3.3.1 Interviews.......................................................................... 23 3.3.2 Respondents.....................................................................25 3.4 Data Analysis............................................................................... 26 3.5 Quality of the Results................................................................... 26 4 Empirical Findings............................................................... 29 4.1 Structure in Commercial and Non-profit Organizations................ 29 4.1.1 Commercialization according to the Director of National Teams.......................................................................................... 35 4.2 Areas of Responsibility ................................................................ 37 4.2.1 Decision Making................................................................ 39 4.2.2 Information and Communication ....................................... 43 4.2.3 Motivation.......................................................................... 47 5 Analysis ................................................................................ 51 5.1 Structure in Commercial and/or Non-profit Organizations ........... 51 5.1.1 Commercialization according to the Director of National Teams.......................................................................................... 54 5.2 Areas of Responsibility ................................................................ 55 5.2.1 Decision Making................................................................ 56 5.2.2 Information and Communication ....................................... 59 5.2.3 Motivation.......................................................................... 63 5.3 The A-DIM Model......................................................................... 66 6 Conclusion ........................................................................... 68 6.1 Conclusion and Implications ........................................................ 68 6.2 The Future for Swedish Hockey................................................... 69 6.3 Evaluation of the Study................................................................ 70 6.4 Future Research.......................................................................... 70 7 References............................................................................ 71 4 Appendix 1: Selection of Clubs ............................................... 75 Appendix 2: The Selected Clubs.............................................. 76 Appendix 3: Respondents ........................................................ 77 Appendix 4: Interview Questions Club Director / Manager of Sports......................................................................................... 78 Appendix 5: Interview Questions Director of National Teams80 Figures Figure 2.1 Responsibility on Different Levels within the Organization………………….11 Figure 2.2 The A-DIM Model…………………………………………………………...18 Figure 3.1 Knowledge Theory…………………………………………………………...20 Figure 3.2 Hermeneutic Approach………………………………………………………21 Figure 3.3 Applied Qualitative Method………………………………………………….22 Figure 5.1 The Core Mission in a Non-profit Organization...……………………………53 Figure 5.2 The A-DIM Model…………………………………………………………...55 Figure 5.3 The A-DIM Model – Decision Making………………………………………56 Figure 5.4 The A-DIM Model – Information and Communication……………………...59 Figure 5.5 The A-DIM Model – Motivation……………………………………………..63 Figure 5.6 The A-DIM Model…………………………………………………………...66 5 1 The Game is on Tonight… In this chapter we will introduce the reader to Swedish ice hockey1, discuss the problem in contemporary hockey clubs 2, and formulate the purpose of this thesis: “…to create an understanding about how managers in Swedish elite hockey clubs experience the assumed adjustments in organizational structure and areas of responsibility when turning into more commercial organizations”. The chapter concludes in a thesis outline. [This is an imaginary story] We used to live on the same street, but since we moved away five years ago, a lot of things have happened. Back then we played in the same hockey team and sport was our life and the only thing we were interested in was hockey, hockey and even more hockey. The team we used to play in has today entered Elitserien 3 and the players have become professional, they are not slaving away in part-time jobs like we used to do. Our friend is today the Club Director 4. We were supposed to meet up tonight but he was busy since the last game for the season is on. The whole town is discussing the game and the tickets sold out months ago. This whole season has been crazy, it has been impossible to get a hold of tickets since Christmas. We understand that he is busy tonight and cannot meet up with us since he must have a lot of things to think about prior to tonight’s game. Just imagine all things that must work properly in the organization. The players must be motivated to perform well and by the way, what about that new player that the club just bought from Finland last week. Has