Developing a business model for small and medium-sized community sports clubs in sparsely populated areas: A Case Study from the Australian Northern Territory

Community sports clubs in sparsely populated areas face many challenges in the current socio
economic landscape. Management literature suggests that for-profit organizations apply business
models to mitigate their challenges and generate profits while staying in control of their operational
and financial functions (Porter & Derry, 2012). Certain not-for-profit organizations also have
adopted business models to strive for improved relationships and financial performance, focusing
on long-term sustainability (Bradbury et al., 2021). However, the application of business models
in small and medium-sized community sports clubs in sparsely populated areas remains under
researched.
The purpose of this thesis is to develop a theoretically sound and practically feasible business
model that small and medium-sized community sports clubs can implement to better manage their
operations, finances, and relationships and strive for long-term sustainability. The research will be
carried out taking the Australian Northern Territory as a case study, which provides an appropriate
setting with its unique socio-geographical context. The research will follow a deductive approach
where a theoretical framework is developed based on business model literature and tested using
confirmatory factor analysis (CFA) and structural equation modelling (SEM).
This research will rely on primary data collected from community sports club members in the
Northern Territory (NT). A survey questionnaire will be administered to the members of the
selected clubs based on purposive convenience sampling and the consent to participate. The focal areas
of the research would be relationship management, financial management, and effectiveness in
operations and sports activities of community sports clubs in the NT. The outcome of the research
will contribute towards filling the literature gap on business models applicable to community
sports clubs in sparsely populated areas. Furthermore, it is expected to provide recommendations
to community sports club leadership on adopting an optimum business model to manage socio
economic challenges and achieve long-term sustainability. The research findings will further
benefit sports authorities, entrepreneurs, policy-makers, and other stakeholders to work together
with community sports clubs and promote socio-economic growth.