Asymmetry in information acquisition—Exploring the principal–agent dyad of sport organizations and sport management higher education institutions

Abstract

This study is based on a metaphorical contract in sport management, whereby sport organizations (the principal) engage sport management higher education institutions (the agent) in qualifying graduates according to industry demands. There is asymmetry in the contract due to the lack of incentives for the principal to provide specific information and the agent’s ignorance about this information. A third party can acquire crucial information that sport management higher education institutions need to fulfil the contract. Based on a qualitative content analysis of 12 interviews with sport organization representatives, the study finds that sport management higher education institutions need to focus on either developing generic competencies or credibly signalling the value of sport management-specific competencies in their curriculum in order to efficiently fulfil the contract.