Prioritizing Sponsorship Resources in Formula One Racing: A Longitudinal Analysis

Journal of Sport Management, 31(1), 96-110, 2017.

23 Pages Posted: 26 Apr 2018

See all articles by Joe Cobbs

Joe Cobbs

Northern Kentucky University - College of Business

B. David Tyler

Western Carolina University

Jonathan A. Jensen

University of North Carolina at Chapel Hill

Kwong Chan

University of Massachusetts Amherst

Date Written: 2017

Abstract

Accessing and exploiting organizational resources are essential capabilities for competitive sport organizations, particularly those engaged in motorsports, where teams lacking resources frequently dissolve. Corporate sponsorship represents a common method for resource acquisition. Yet, not all sponsorships equally benefit the sponsored organization. Sponsorship utility can be dependent on institutional dynamics such as league governance that produces competitive disparities. Through this study we extend the resource-based view to assert that sponsorships vary in their propensity to contribute to team survival, warranting prioritization in sponsorship strategy based on access to different sponsor resources. To empirically investigate the influence of a variety of sponsorships, survival analysis modeling was utilized to examine 40 years of corporate sponsorship of F1 racing teams. One finding from the longitudinal analysis was that sponsorships offering financial or performance-based resources enhance team survival to a greater degree than operational sponsorships. However, such prioritization is subject to team experience, changes in institutional monetary allocation, and diminishing returns.

Keywords: motorsports, survival analysis, marketing strategy, resource-based view, resource priority, competitive advantage

Suggested Citation

Cobbs, Joe and Tyler, B. David and Jensen, Jonathan and Chan, Kwong, Prioritizing Sponsorship Resources in Formula One Racing: A Longitudinal Analysis (2017). Journal of Sport Management, 31(1), 96-110, 2017.. Available at SSRN: https://ssrn.com/abstract=3158550

Joe Cobbs (Contact Author)

Northern Kentucky University - College of Business ( email )

Highland Heights, KY 41099
United States

B. David Tyler

Western Carolina University ( email )

Cullowhee, NC 28723
United States

Jonathan Jensen

University of North Carolina at Chapel Hill ( email )

308 Woollen
Chapel Hill, NC 27599
United States

Kwong Chan

University of Massachusetts Amherst

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