Organizational capacity building in non-profit sport clubs: exploring the role of competition as a capacity building stimulus

Research question: Non-profit sport clubs are operating in an increasingly competitive market due to the growth of the for-profit sport sector and changes in sport participation patterns. To counteract competition, clubs are expected to take strategic action by investing in their organizational capacities. The aim of the present study is to explore if and how perceived competition from other organizations acts as an external capacity building stimulus for non-profit sport clubs. Research methods: Longitudinal data were drawn from a nationwide online survey of non-profit sport clubs in Germany between the years 2011 and 2020 (ranging between n = 1366 and n = 5315 observations). Results and findings: The results highlight that clubs faced with competition from commercial providers are driven to invest in paid staff, whereas the number of volunteers’ decreases and clubs are less likely to break even. Clubs faced with competition from other clubs are less likely to report having a strategic concept. The possession of club-owned facilities and gyms remains unaffected. Implications: The findings reveal the limited effects of competition on the development of organizational capacities, with significant effects occurring only in the human resource capacity as a driver of professionalization. Implications for theory and practice are discussed.