A Transaction Cost Approach to Sport Sponsorship
Sport sponsorship is an evolving area of interest to both academics and business practitioners. Despite recent advances, scholarly reviews of sponsorship attest to a lack of underlying theories and conceptual foundations on which to base empirical enquiries. This paper draws from the economics literature to provide an overview of Transaction Cost Theory - an approach that draws attention to the costs involved in negotiating, retaining and monitoring sponsorship exchanges. The term "costs" refers to those characteristics or dimensions of a sponsorship transaction that make exchange problematic. From the perspective of sport organisations, three sources of sponsorship costs are outlined relating to the need for: (1) planning and safeguarding, (2) adapting and servicing, and (3) monitoring and evaluating. Transaction cost theory introduces implications for sponsorship relations, particularly with respect to the possibility for costs to expand over time, the consequences of sponsor-specific investments and the choices of governing mechanisms used to manage costs. Critiques of the approach are discussed, followed by recommendations for empirical research and methodological considerations using transaction cost theory.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 8 (2005)
Issue (Month): 1 (May)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/716936/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/716936/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
- Williamson, Oliver E, 1999. "Public and Private Bureaucracies: A Transaction Cost Economics Perspective," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 306-342, April.
- Turner, Paul & Cusumano, Sam, 2000. "Virtual Advertising: Legal Implications for Sport," Sport Management Review, Elsevier, vol. 3(1), pages 47-70, May.
- Farrelly, Francis & Quester, Pascale G., 2003. "What Drives Renewal of Sponsorship Principal/Agent Relationships?," Journal of Advertising Research, Cambridge University Press, vol. 43(04), pages 353-360, December.
When requesting a correction, please mention this item's handle: RePEc:eee:spomar:v:8:y:2005:i:1:p:1-17. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.