Analyzing Brand Strategy on an International Scale: The Sponsorship Performance Cycle in Formula One Racing.

This article examines the factors influencing the continuity or dissolution of international brand partnerships in Formula One (F1) racing sponsorships, focusing on the roles of geographic origin and team performance. Analyzing 53 years of data covering over 3,000 sponsorships across six continents, the study finds that shared country of origin (COO) between sponsor and team, higher historical and recent team performance, and brand-related factors such as high brand equity, congruence, and public ownership significantly reduce the likelihood of sponsorship termination. The research also reveals that sponsorship portfolio clutter increases the probability of exit, while effects vary somewhat across three distinct F1 eras reflecting changes in marketing and digital media environments. These findings contribute to sponsorship theory by confirming a sponsorship performance cycle and offer practical insights for managers seeking durable international marketing partnerships in global sports contexts.