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
Date Written: 2017
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
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