Boundary Conditions to Sponsorship Exchange: Heterogeneity in Formula One Team-Sponsor Dyads

Abstract

This international study connects sponsorship-linked marketing theories to practice by exploring team-based boundary conditions for congruence, brand clutter and equity, agency conflict (i.e., shared nationality), and the performance cycle. Are these accepted theories generalizable, at least within a common context, or does application result in heterogeneity? Employing five decades of data, we execute a longitudinal hazard model for six iconic F1 teams to discern influences to sponsorship longevity at the level of decision-making: the team-sponsor dyad (N = 1,193). With some exceptions, the teams transcend geographic and business-to-business/consumer distinctions. Heterogeneity arises in factors characterizing the sponsoring brands (e.g., congruence only influences Ferrari's sponsorships; brand equity enhances relationships with McLaren and Williams; clutter is harmful to sponsorships with Ferrari, Red Bull, and Williams), as well as the performance cycle, which affects sponsorships with Ferrari, McLaren, and Mercedes. While the sponsorship literature has matured, generalizability warrants investigation as connection to practice advances.