IDEAS home Printed from https://ideas.repec.org/a/eee/spomar/v8y2005i1p1-17.html
   My bibliography  Save this article

A Transaction Cost Approach to Sport Sponsorship

Author

Listed:
  • Sam, Michael P.
  • Batty, Richard
  • Dean, Rebecca G.K.

Abstract

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.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:spomar:v:8:y:2005:i:1:p:1-17
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1441352305700309
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
    4. Turner, Paul & Cusumano, Sam, 2000. "Virtual Advertising: Legal Implications for Sport," Sport Management Review, Elsevier, vol. 3(1), pages 47-70, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joe, Cobbs, 2011. "Legal battles for sponsorship exclusivity: The cases of the World Cup and NASCAR," Sport Management Review, Elsevier, vol. 14(3), pages 287-296, August.
    2. Meiklejohn, Trevor & Dickson, Geoff & Ferkins, Lesley, 2016. "The formation of interorganisational cliques in New Zealand rugby," Sport Management Review, Elsevier, vol. 19(3), pages 266-278.
    3. Cousens, Laura & Babiak, Kathy & Bradish, Cheri L., 2006. "Beyond Sponsorship: Re-Framing Corporate-Sport Relationships," Sport Management Review, Elsevier, vol. 9(1), pages 1-23, May.
    4. Jackson, Steven J. & Sam, Michael P., 2007. ""Yes, Prime Minister" and the Dilemmas of Sport Policy," Sport Management Review, Elsevier, vol. 10(3), pages 307-323, November.

    More about this item

    Statistics

    Access and download statistics

    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: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). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/716936/description#description .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.