Are “Tech-Savvy” Owners Better for Business? Evidence From Major League Baseball

Abstract

Business intelligence (BI) technologies can help firms optimize revenue and expenses if acquired and deployed proficiently. In parallel, the sport industry’s shift toward digitization is being driven by an influx of new, technology-savvy owners and managers. It follows that owners who are business intelligence experts could make their sport organizations more profitable. This paper models 14 years of Major League Baseball data to explore the degree to which owners with business intelligence career experience affect their organization’s operating margin through (a) optimizing revenue and (b) enhancing cost efficiency. It further explores owners’ knowledge accrual as a moderator in this process. Results suggest the effect of business intelligence expertise on margins is positive, but small. Margin increases were attained by spending more efficiently on labor, not by generating more revenue. These mediating effects were moderated by knowledge accrual, such that a longer tenure increased the early-tenure advantages of BI career experience.