F1 Team Survival: Prioritizing Sponsor Resources for Longevity and Success

What is it about?

This longitudinal study utilized survival analysis to assess how different categories of resources acquired through corporate sponsorship influence the longevity (survival) of Formula One (F1) racing teams over 40 years. The study asserted that resources are heterogeneous and warrant prioritization based on their utility to the sponsored organization. The 1,077 sponsorships analyzed were categorized as performance-based, financial, or operational. The results demonstrated that sponsors offering financial or performance-based resources (those functionally related to competitive performance) significantly enhanced the likelihood of team survival, reducing the odds of dissolution by over 65% for each sponsor. Operational sponsorships (e.g., logistical or office services) had no significant effect on survival. This beneficial effect of performance-based sponsors diminished as teams gained competitive experience. Therefore, managers of young teams should prioritize performance resources, while established teams can rely more on financial support.

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Photo by Philip Myrtorp on Unsplash

Photo by Philip Myrtorp on Unsplash