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What Drives Renewal of Sponsorship Principal/Agent Relationships?

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  • FARRELLY, FRANCIS
  • QUESTER, PASCALE G.

Abstract

The relationship between advertising agencies and their clients has been the subject of some research, including studies conceptualizing it from an agency theory perspective. The increasingly important relationship between sports (or art) properties and their sponsors, on the other hand, while recognized as crucial for the long-term success of the sponsorship agreement, has remained shrouded in mystery, with little or no research aiming to establish and understand the antecedent of sponsorship renewal. This article reports on an exploratory dyadic study examining the effects of market orientation, trust, and commitment on the principal's willingness to renew the sponsorship relationship. The leading sponsorship property in Australia, the Australian Football League (AFL), and its major sponsors provided the empirical context for this study.

Suggested Citation

  • Farrelly, Francis & Quester, Pascale G., 2003. "What Drives Renewal of Sponsorship Principal/Agent Relationships?," Journal of Advertising Research, Cambridge University Press, vol. 43(4), pages 353-360, December.
    • Handle: RePEc:cup:jadres:v:43:y:2003:i:04:p:353-360_03
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    Cited by:

    1. Joe Cobbs, 2011. "Legal battles for sponsorship exclusivity: The cases of the World Cup and NASCAR," Sport Management Review, Taylor & Francis Journals, vol. 14(3), pages 287-296, July.
    2. T. Bettina Cornwell & Youngbum Kwon, 2020. "Sponsorship-linked marketing: research surpluses and shortages," Journal of the Academy of Marketing Science, Springer, vol. 48(4), pages 607-629, July.
    3. Sam, Michael P. & Batty, Richard & Dean, Rebecca G.K., 2005. "A Transaction Cost Approach to Sport Sponsorship," Sport Management Review, Elsevier, vol. 8(1), pages 1-17, May.
    4. Dreisbach, Jan & Woisetschläger, David M. & Backhaus, Christof & Cornwell, T. Bettina, 2021. "The role of fan benefits in shaping responses to sponsorship activation," Journal of Business Research, Elsevier, vol. 124(C), pages 780-789.
    5. Michelle Rogan, 2014. "Too Close for Comfort? The Effect of Embeddedness and Competitive Overlap on Client Relationship Retention Following an Acquisition," Organization Science, INFORMS, vol. 25(1), pages 185-203, February.
    6. Urriolagoitia, Lourdes & Planellas, Marcel, 2007. "Sponsorship relationships as strategic alliances: A life cycle model approach," Business Horizons, Elsevier, vol. 50(2), pages 157-166.
    7. Barth, Michael & Emrich, Eike & Daumann, Frank, 2017. "Evaluation of sporting success in Austria: An institutional economics analysis," Working Papers of the European Institute for Socioeconomics 20, European Institute for Socioeconomics (EIS), Saarbrücken.
    8. Morgan, Ashlee & Taylor, Tracy & Adair, Daryl, 2020. "Sport event sponsorship management from the sponsee’s perspective," Sport Management Review, Elsevier, vol. 23(5), pages 838-851.

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