An Analysis of the Influence of Competitive and Institutional Pressures on Corporate Sponsorship Decisions

Abstract

Sport sponsorship is frequently described as a strategic activity, and thus, it is influenced by both competitive and institutional forces. Using a sample of 28 Canadian companies, this study explores the influence of competitive and institutional pressures on those individuals who make decisions about their company's sport sponsorship initiatives. The results show that the sponsorship activities of rival companies were influential in a company's sponsorship choices. This was particularly the case in highly concentrated industries. We also show some evidence of a first-mover advantage in sponsorship decision-making but found preemptive strategies to yield little competitive advantage. In addition to these pressures from the competitive environment, institutional pressures from companies in the same geographic area, in the form of mimetic activity, in the form of involvement in social networks, and through the occupational training of the decision makers—all played a role in the choices made about what activities to sponsor.