Sponsorship and the Resource-Based View of the Firm: Effects on the Acquisition of Resources, Demand, the Recruitment of Human Capital, and Organizational Performance

Abstract

Numerous studies have investigated the influence of sponsors on the sport organizations with whom they partner. However, rather than simply assessing the impact of a new, incremental sponsor, which should result in a net positive for the sponsored organization, we quantify and isolate the effect of resources provided upon the switch of one sponsor to another. Furthermore, the resource-based view of the firm is utilized as a theoretical lens to understand the effects of these resources on demand, the ability to recruit human capital, and organizational performance. In Study 1, we analyze 15 years of data from 98 sponsorship agreements, finding that switches provide additional resources, but do not positively impact demand, recruiting, or performance, even in subsequent years. In Study 2, we find that the financial commitment necessary to acquire a sponsorship from a competitor does not result in a corresponding increase in shareholder value for the sponsoring firm.