Managing Sport Innovations: A Diffusion Theory Perspective

Abstract

Innovations in sport are ubiquitous. They range from a slightly modified version of an existing sport to a radically different, previously unheard-of phenomenon. On one hand, when managed effectively, these innovations are profitable and provide potentially profitable sponsorship opportunities as well. On the other hand, innovations can be costly and run the risk of never being fully accepted by consumers. This study proposes a diffusion theory framework as a means of enhancing sport-innovation success and uses an empirical analysis of the Cleveland Cavaliers' move to a new facility to illustrate the managerial usefulness of the theory.