IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-01488178.html
   My bibliography  Save this paper

Too Much of a Good Thing? The Dual Effect of Public Sponsorship on Organizational Performance

Author

Listed:
  • Julien Jourdan

    (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

  • Ilze Kivleniece

    (INSEAD - Institut Européen d'administration des Affaires)

Abstract

Existing research provides contradictory insights on the effect of public sponsorship on the market performance of organizations. We develop the nascent theory on sponsorship by highlighting the dual and contingent nature of the relationship between public sponsorship and market performance. By arguing that sponsorship differentially affects resource accumulation and allocation mechanisms, we suggest two opposing firm-level effects, leading to an inverted U-shaped relationship between the amount of public sponsorship received and the market performance of sponsored organizations. This non-linear relationship, we argue, is moderated by the breadth, depth and focus of the focal organization's resource accumulation and allocation patterns. While horizontal scope (i.e. increased breadth) and externally oriented resource profile (i.e. reduced depth) strengthen the relationship, market orientation (i.e. increased focus) attenuates it. We test and find strong support for our hypotheses using population data on French film production firms from 1998 to 2008. Our work highlights the performance trade-offs associated with public sponsorship, and carries important managerial and policy implications.

Suggested Citation

  • Julien Jourdan & Ilze Kivleniece, 2017. "Too Much of a Good Thing? The Dual Effect of Public Sponsorship on Organizational Performance," Post-Print hal-01488178, HAL.
    • Handle: RePEc:hal:journl:hal-01488178
    DOI: 10.5465/amj.2014.1007
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-01488178. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.