The global sports industry is a major economic driver, contributing to GDP, employment, and urban development. As China's sports sector grows rapidly with state investment and market liberalization, it is crucial to assess its competitive standing against Western sports firms. This study examines performance differences across 28,890 sports firms, 41 per cent based in China, using contingency theory to analyze institutional alignment, narrative texture, city clustering, and governance. Results show Chinese firms outperform Western firms by leveraging government support, market structures, and strategic systems. Narrative texture differs: Chinese firms adopt abstract, long-term narratives aligned with collectivist culture, while Western firms rely on concrete, short-term narratives emphasizing individual achievements. City clustering shapes performance: Chinese firms thrive in dense clusters, while Western firms perform better in less dense environments. Governance also matters, with Chinese firms favoring inclusive boards and Western firms smaller elite boards. These findings highlight the importance of adapting strategies to institutional and cultural contexts.
Tariq H. Malik (Thu,) studied this question.