What happens when workplace colleagues land on opposing sides of an external competition? Henning Piezunka, an associate professor of management at Wharton, tackles this question in a recent study, using sports data to shed light on how outside rivalries can shape collaboration within the workplace—and offering practical takeaways for managers to preserve unity. The implications go far beyond sports.

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Piezunka’s study, “When Colleagues Compete Outside the Firm,” looks at people’s connections to organizations beyond their primary workplace. These external ties can occasionally pit colleagues against each other in direct competition. For instance, two executives could find themselves serving on rival corporate boards, or employees could support opposing political parties, stoking conflict.

“In my work with top management teams, very often what I find is that the conflicts they are having with each other do not actually take place within the team, but outside of the company. And if you learn that you are actually competing in this different field, it might make collaborating a little bit more challenging,” Piezunka said in an interview with Wharton Business Daily. (Listen to the podcast.)

Studying workplace competition between rival soccer players

To investigate this phenomenon, Piezunka and his co-authors, Thorsten Grohsjean and Maren Mickeler, turned to a unique dataset: professional soccer players. These athletes, who often play together for the same club (for example, Real Madrid, FC Barcelona, Manchester United, Liverpool, and Bayern Munich), frequently face off as opponents in international tournaments, such as the FIFA World Cup.

The researchers analyzed match data, focusing on shifts in player collaboration. They measured this by tracking how frequently teammates passed the ball to each other before and after competing as rivals on opposing national teams.

The findings were striking: Players who faced off as rivals during the World Cup passed the ball to each other 11% less frequently in the subsequent club season. This decline in collaboration highlights how external rivalries can create enduring effects on teamwork, even after individuals return to their shared professional setting.

“What we find is that their tendency to collaborate after they have faced each other at the World Cup goes down tremendously. They are much less willing now to collaborate and to pass the ball to one another,” Piezunka says.

‘In my work with top management teams, very often what I find is that the conflicts they are having with each other do not actually take place within the team, but outside of the company.’
—Henning Piezunka

Published in Strategic Management Journal, the study showed the effect was more pronounced when players had a stronger connection to their external organization. For instance, soccer players who strongly identified with their national team—such as those without dual citizenship— experienced greater declines in teamwork compared to those with weaker ties to their national identity.

“One thing we can learn from that is it’s very important that you strengthen the identity—that you are in it together when you are performing on behalf of your club or, more generally, your employer,” Piezunka says.

Learning from sports to better collaborate and compete in the office

The competitive dynamics seen in sports frequently mirror those found in professional environments. Piezunka points to real-world examples, such as executives serving on the boards of rival companies. At the U.S. retailer Home Depot, for instance, former executives Carol Tomé and Marvin Ellison held board positions at UPS and FedEx, respectively—two logistics powerhouses that often compete head-to-head.

“You can totally see the conflict,” Piezunka says. “The fact they are also on the boards of these competing companies ends up dampening the collaborative spirit with one another. And this is where it becomes very tricky.”

Such executives might unintentionally carry these rivalries back into their primary workplace and shape how they interact, in terms of reduced cooperation, perhaps even distrust or defensiveness.

So, how can organizations navigate the challenges brought on by external rivalries? Piezunka provides some actionable recommendations for company managers to consider.

Fostering a more collaborative culture in the workplace

A key takeaway is the importance of fostering a culture that prioritizes collaboration. When colleagues see each other as allies rather than rivals, they are less likely to let external competition affect their professional relationships. By cultivating a strong sense of unity, leaders can mitigate the risk of external connections disrupting internal collaboration.

‘It’s very important for the management of the company, to a certain degree, to establish boundaries...’
—Henning PiezunkaPiezunka also underscored the importance of establishing clear boundaries for external engagements. Organizations can create guidelines for participation in outside groups to minimize potential conflicts of interest. He cited tech company Basecamp as an example, which notably banned political discussions on internal forums to reduce sources of workplace tension.

“It’s very important for the management of the company, to a certain degree, to establish boundaries and to say there are certain aspects which belong in the workplace and other aspects which do not,” Piezunka says, highlighting the balance between individual autonomy and organizational cohesion.

The bottom line is that encouraging employees to explore external opportunities can be beneficial, but it’s essential to address potential effects on workplace collaboration.

Published March 21, 2025, by Knowledge at Wharton.