Achieving competitive balance in the face of resource uncertainty: a resource dependence perspective on the Negro Leagues

ABSTRACT Resource Dependence Theory suggests that organizations faced with high resource dependency on actors in their external environment will take action to manage or minimize the dependence. In the early twentieth century, the Negro Leagues were faced with such a resource dilemma. At the same time, the ability to achieve competitive balance is another important predictor of success for sports leagues. Five empirical tests of competitive balance were applied to data from the seasons were the Negro National League, Eastern Colored League, and Negro American League were in operation to ascertain its presence. The results support the presence of competitive balance in Negro Leagues, as measured by both within-seasons and across-seasons. Further, the competitive balance achieved within the three Negro Leagues was comparable to that of two Major Leagues. While there are many books, essays and research studies about the Negro Leagues, there is a paucity of empirical work within this rich body of literature. The present study seeks to add to this subset of research and provide further evidence of the reasons the leagues were well positioned to experience success (albeit short-lived).