Professional Documents
Culture Documents
LENA ZANDER
Department of Business Studies, Uppsala University, Uppsala, Sweden
The authors gratefully acknowledge the participants in this study for their time and
reflection, as well as the reviewers for their suggestions and insights.
Address correspondence to Kate Daellenbach, School of Marketing & International
Business, Victoria University of Wellington, PO Box 600, Wellington, New Zealand 6140.
E-mail: kate.daellenbach@vuw.ac.nz
81
82
K. Daellenbach et al.
INTRODUCTION
Decisions surrounding sponsorship or support of nonprofit organizations
are important both for the nonprofit trying to generate revenue, as well
as the corporation in making an investment in the community (Seitanidi &
Ryan, 2007). Related academic literature suggests that within the corporate
(sponsor/donor) decision, a senior executive or board member, may hold a
high level of personal influence (e.g., Brammer & Millington, 2004; OHagan
& Harvey, 2000), and relationships have been found particularly through the
use of available quantitative data (e.g., Brammer, Millington, & Pavelin, 2006;
Wang & Coffey, 1992). However there remains opportunity to explore the
role of influence in more depth via a qualitative study of decision-making
processes. Moreover, the role of influence may extend beyond previously
known individuals. Thus, the goal of the current study is to learn more
about the existence, relative organizational position and characteristics of a
key individual in corporate support decisions of nonprofit organizations, in
particular those concerning nonprofit arts sponsorship. This study will therefore take a qualitative multiple-case study approach to understand whether a
key individual is influential, and to explore the characteristics and source of
influence for these individuals. In doing so, four propositions are presented
to guide further study.
It is a fact of nonprofit life that many organizations are struggling to
break even. In that effort, managers of nonprofits often seek out the support
of the business community, be it via a sponsorship, donation, or another
arrangement (Seitanidi & Ryan, 2007). Accordingly nonprofit managers try
to understand the companies they are approachingtheir needs, their goals,
why they might take on this support role, and how they make their decisions.
Much has been done in sponsorship and corporate philanthropy literature
concerning the objectives and motivations for corporate support of nonprofits (Hoek, Gendall, & West, 1990; Madden, Scaife, & Crissman, 2006;
McAlister & Ferrell, 2002; Robinson, 2006). Within this literature, and related
to decision making in particular, we find that objectives and motivations are
often linked with personal objectives and/or personal influence of a single individual (e.g., Brammer & Millington, 2004; Thjme, Olson, & Brnn,
2002). Given the importance of corporate support to the income of nonprofit
organizations, greater understanding of this individual and their role in the
decisions is warranted.
The idea of an influential single individual is not new to discussions
particularly in the wider management decision-making or organizational purchasing fields (e.g., Eisenhardt & Zbaracki, 1992; Pettigrew, 1975; Wind &
Robertson, 1982). However, decisions related to corporate support, although
noted as becoming more strategic (Cantrell, Kyriazis, Noble, & Algie, 2008;
Nickell, Cornwell, & Johnston, 2011; Porter & Kramer, 2002), offer a context not frequently examined with these frameworks. As authors note,
83
THEORETICAL BACKGROUND
In organizational decisions, it is well established that key influential individuals are identifiable (e.g., Drumwright, 1994; Hambrick & Mason, 1984;
Pettigrew, 1975). However, despite the growing ubiquity of corporate support of nonprofit organizations, this perspective has received little attention
in the context of such decision-making (Cantrell et al., 2008).
Past research has identified influential individuals in varying decision
making contexts, such as organizational purchasing and strategic decision
making, revealing a number of defined roles including policy entrepreneurs
(Drumwright, 1994), gatekeepers (Pettigrew, 1975), boundary role person
(Krapfel, 1985), and linking pin (Wind & Robertson, 1982). Commonalities
among these types of roles indicate that people who hold sway often control the flow of information, they possess leadership qualities and some
element of power, but they are not always the top-level manager. This
later point is in contrast to other authors such as Hambrick and Mason
(1984) who consider the individuals status in an organization as related
to their influence, and Orlitzky and Swanson (2002) who propose that a
corporations attunement to values of socially responsible decision making is supported and influenced by top executives. While the above only
lists a few studies, it is clear that influential roles are likely to be present
in organizational decisions, although this may not always be determined
by the persons formal status. While a number of decisions have been
examined in a variety of contexts, there remains opportunity to examine
84
K. Daellenbach et al.
85
However, sponsorship has changed over time, becoming both more popular
and more strategic, especially in its incorporation into advertising campaigns
(Papadimitriou, Apostolopoulou, & Dounis, 2008). With this change, companies have responded via the establishment of more formal programs
and procedures for evaluating, and managing their sponsorships (Cornwell,
2008). However, even in this new era of more strategic sponsorship, the formal roles of individuals involved has been found to vary (Brennan, Binney,
& Brady, 2012). While individuals are therefore noted, as is the changing
climate, little research attention has been given to understanding the potential for individual influence, within this environment of potentially greater
formality.
There is some insight into individual influence in these relationships
especially within qualitative research into arts sponsorship. Studies taking a
longer term perspective of the relationships between sponsors and arts properties have found that an individual emerges as important in that they act as a
bridge between the arts organization and the sponsor. Ryan and Fahy (2003)
referred to this person as a champion of the sponsorship (p. 37). Similarly,
Olkkonen (2002) proposed that there be relationship promoters on each
side of the relationship: persons who act as translators between two different organizational fields, who understand both parties goals and needs, and
who try to find the balance in the cooperation (p. 284). These studies establish that in examining the sponsor-property relationship, an individual may
be crucial. Both of the above studies also point to the importance of personal
relationships, personalities and the beliefs and mindsets of individuals. Also
evident here is that the roles suggested informally evolve and are not specific
to the top executive. A related finding was evident in Daellenbachs (2012)
process-oriented research into arts sponsorship which also highlighted that
an individual was likely to be influential in the decision but again, this was
not always the top-level executive. The findings in these later studies are
somewhat in contrast to research suggesting that top managers are those
most influential. Sponsorship research thus raises the question of who may
emerge as influential in the context of a shorter-term decision making process? How might they take on this role? What are the characteristics of this
role?
86
K. Daellenbach et al.
as the CEO (Brammer et al., 2006) or members of the board (Wang & Coffey,
1992). Many of these studies, however, are based on quantitative data that
may only confirm or deny the presence of relationships, suggesting that an
in-depth, qualitative perspective may be revealing.
The inconsistent findings here may be due to changes that have
occurred over time in the field of corporate giving. Similarly to the evolutions of sponsorship, corporate philanthropy has also undergone change.
Cantrell, Kyriazis, Noble, and Algie (2008) noted that while personal motives
may have been influential in the past when corporate giving was more motivated by altruism, corporate giving is becoming more strategic, resulting in
greater levels of policy formulation as well as the appointment of corporate
giving managers. These authors highlight this specific role, and go on to note
that greater examination of the role of these managers is an opportunity for
future research.
Another avenue of the corporate philanthropy literature considers
softer characteristics and backgrounds of key individuals. Emotional and
personal interests of senior-level managers, especially as they relate to the
arts, have been suggested as being present underneath the layer of what
might be thought of as more commercial rationale (Kirchberg, 2004). Authors
have also found relationships between corporate giving, and whether the
CEO felt philanthropy was part of their self-identity (Dennis, Buchholtz,
& Butts, 2009). These ideas of self-identity, values, and more personal
characteristics are echoed by authors who present conceptual models for
understanding the relationships between executives and giving (Choi &
Wang, 2007; Jones, 2007; Valor, 2006). Here again is the suggestion that
beliefs, values and mindsets may well be important aspects of an individuals
influence, but with the exception of Dennis et al. (2009), these papers are
conceptual in nature. Furthermore, these authors suggest that there remains
opportunity to examine the influence of these individual backgrounds on
actual decisions related to corporate philanthropy.
87
88
K. Daellenbach et al.
Ba, b
Ca
Dc, d
Ec
Fb
2
4
G
H
2
4
Jd
Kb
2
3
Cases B and C are within the same company. b Cases B, F, and K share the same arts organization. c Cases
D and E are within the same company. d Cases D and J share the same arts organization.
89
90
K. Daellenbach et al.
(Cantrell et al., 2008; Cornwell, 2008). It suggests that while formal roles may
be present, the emergence of an advocate, as a key influencing individual,
is dependent on the situation.
ADVOCATES
In addition, one arts manager stated that the executive/advocate had a huge
background with the [arts property] which was seen to provide information
useful to the decision.
In terms of the type of knowledge used, advocates accessed knowledge
of their companys objectives, of sponsorship generally and of the specific
arts initiative. General sponsorship knowledge was commented upon by
both executive and manager-level advocates:
91
Knowledge related to the arts property specifically was drawn upon again by
advocates at all levels. For example, one manager/advocate stated, I knew
it . . . I didnt have any problem visualising that. I didnt have any problem
justifying it and selling it internally.
Other respondents noted that the executive/advocate held this knowledge via their passionate interest or their history with the arts initiative.
This personal experience with the arts organization appears at first to
resonate with earlier literature discussing personal preferences of managers
being influential (Brammer & Millington, 2004; Madden et al., 2006; Werbel &
Carter, 2002). However, respondents from both sides of the dyad in each case
appeared to view the advocates knowledge more as information that contributed to the evaluation of the property. This finding also puts the element
of personal values and backgrounds, suggested in corporate philanthropy literature (Jones, 2007; Kirchberg, 2004) into a new light wherein the personal
views are seen more as an accumulation of knowledge to be employed in
the decision, rather than just personal preferences.
ADVOCATES
92
K. Daellenbach et al.
we added a value product . . . and he was really taken with that (arts chief
executive speaking of the sponsoring companys chief executive).
In the above case, the sponsorship was initially not supported by the
sponsorship manager, and while the CEO shared the impression that they
were not getting enough value from it, it was the CEO who called the arts
manager in to extend negotiations. This particular arts manager further noted,
I got called down there and sat with [the CEO] on my own and got told to
shift it up a gear.
Here, we see the advocate taking their information and impression, and
using it to generate support within the company. It is noted that this was
the case even if the advocate was not assigned with the formal authority to
make a decision on the sponsorship. For example one manager/advocate
supported the sponsorship, negotiated with the arts organization, gathered
support internally, but still acknowledged that the formal authority was with
the CEO, and this required additional negotiation:
So there were a lot of negotiations, they wanted 3 [years], we said 1,
they said how about 2. In the end this time we did 1 year. It was a
compromise. We argued with [the chief executive] and the compromise
was 1 year.
This role of actively gathering support internally is not something that has
been addressed in any great length in the literature. While leadership and
control of information is noted (Hambrick & Mason, 1984; Pettigrew, 1975),
the extent of this second sales pitch by the advocate is a revealing finding,
which places this individual as crucial to the decision outcome.
ADVOCATES
While it was evident that advocates were the individuals who could initially see the value in the sponsorship, they were also unique in that they
expressed enthusiasm towards the particular sponsorship. One participant
noted more generally that in these decisions, youve got to have people
that are genuinely interested in what youre putting on.
Another arts manager observed the interest expressed by the advocate, when we first met, I had the impression very much that [the brand
manager] was not into it . . . and that [the manager/advocate] was genuinely
interested.
This characteristic of enthusiasm and an ability to generate enthusiasm
further characterizes this role. It suggests the individuals own passion for the
initiative, similar to Ryan and Fahys (2003) suggestion that a champion of
the sponsorship . . . [has] a deep love of the arts and a deep understanding
of their possible effect on people at a personal and professional level
(p. 37). It also suggests personality traits such as those noted for policy
93
It is not surprising that the champion role for a product innovation resonates with advocates of arts sponsorship decisions, as both products may be
viewed as holding elements of risk and uncertainty. The evidence presented
does suggest that these advocates see the vision of how the sponsorship will
work to the benefit of the organization, that they have the ability to capture
the attention of others within the company, and that they provide energy to
the idea.
To conclude this theme, we see that a key individual, the advocate, is
influential. While definitions from a number of areas have contributed, the
advocate in these decisions requires a unique description. The advocate may
be described as the individual within the sponsoring company who possesses
a higher level of experience and knowledge with the arts initiative, who can
see how it will benefit the company, and who takes the initiative to garner
support within the company. In all cases studied, there was consistency
in that the advocate could be identified and was influential in the manner
discussed.
94
K. Daellenbach et al.
This definition suggests that expert power is derived from both the individuals knowledge and the belief of others in this individuals knowledge. The
earlier theme explored the idea of knowledge, but based on this definition
of expert power, knowledge on its own is not sufficient. There needs to be
the belief of others in this knowledge. The evidence in this study suggested
that this belief is often gained via the advocates formal roles within the company. In six of the cases, the advocate was at a managerial level, charged
with researching and justifying sponsorship proposals within the company;
in a sense, these individuals held formal responsibility to be knowledgeable
and in fact to be an advocate for the decisions. In one case, the advocate
was the CEO and the CEO felt it was within their responsibilities to review
and make decisions, to be an advocate for these types of decisions. In the
remaining three decisions, the CEO emerged as the advocate even though
they were not charged with the research or management of sponsorships.
In these cases, these individuals were deemed to have superior knowledge
of the particular arts initiative. One respondent noted that even though the
sponsorship manager was the one formally assigned to make recommendations, in the case being considered, the key relationship thats held is
actually with our CEO. In another case the respondent simply noted that the
chief executive has the ultimate say at the end of the day. Here, there may
be superior knowledge and/or the effect of a higher hierarchical position
leading to expert power and the advocate role.
Certainly this suggests that the expert power and the advocate role is not
always in the chief executive position, nor can it always be defined solely by
the formal role. The formal role, combined with relevant knowledge appears
to lend to expert power.
Before leaving the ideas of knowledge and expert power an important question is whether the advocate drew their knowledge based on the
business/commercial grounding for the initiative, or on the moral case to
contribute to the community. Both of these objectives are acknowledged in
the literature and it is feasible that the different bases of knowledge may
influence the belief of others in the knowledge, and subsequent expert
95
Looking at the previous discussion and propositions reveals that these decisions may be seen as a result of the combination of two spheres of influence,
referred to earlier as the business and the personal. There is an element of
what is expected from the formal role (i.e., to research and negotiate). There
is also an element of what is known and felt. One might consider this also
as a combination of input from the head and input from the heartthe
rational and the emotional. It is perhaps obvious that a sponsorship proposal
will not be accepted simply because an individual possessing an appropriate formal role does their research. There needs to be the recognition that
the partnership will work, and as noted in the first theme, there needs to
be some excitement and enthusiasm. Thus we see the advocate as holding
expert power, and more. The next theme addresses an aspect of the more.
96
K. Daellenbach et al.
This quote both notes the subjective nature of the decision, along with
a reliance on rigorous evaluation. In most cases evidence supported this
application of knowledge, evaluation, and past experience, along with a subjective element. As one manager noted, instinct and due process are both at
play:
You just know instinctively its a good fit for us . . . you go through [the
processes] and you make sure that . . . you eliminate the risk that you
can. But certainly there is a lot of instinct involved in our sponsorships.
97
often in a nonconscious manner, but based on knowledge and past experience. Hodgkinson et al. (2009, p. 280) provided a three-part definition of
intuition as comprising:
98
K. Daellenbach et al.
P2: The more expert power the advocate holds the more likely informed
intuition is to play a strong role in the decision.
The above themes bring our knowledge of the key individual into a new
light. It is evident that in many cases, this key individual is not best described
as the chairman or senior executive but as the advocate. Furthermore, the
idea of knowledge and experience facilitating informed intuition is put
forward as a means by which these advocates influence these decisions.
99
100
K. Daellenbach et al.
101
Conclusion
To conclude, a single individual is crucial in arts sponsorship decisions. This
individual will hold a formal role, but their identification as the key influencing individual is also related to their knowledge, expert power, and informed
intuition. While personal experience and interests are related to this, these
experiences and interests are seen as serving as a reference for them, allowing advocates to see the benefits and opportunities of how such partnerships
will work. This research has thus provided a richer understanding of the role
and characteristics of a key individual in decisions associated with corporate
support. While decisions around arts sponsorship were investigated, similarities may be found in considering other recipients and other partnerships
under the corporate support umbrella. It is also suggested that these decisions are potentially complex and innovative, and that they are influenced
by a key knowledgeable individual, who is open to the opportunities such a
partnership may deliver.
REFERENCES
Bartkus, B. R., Morris, S. A., & Seifert, B. (2002). Governance and corporate
philanthropy: Restraining Robin Hood? Business and Society, 41, 319344.
102
K. Daellenbach et al.
Brammer, S., & Millington, A. (2004). Stakeholder pressure, organizational size, and
the allocation of departmental responsibility for the management of corporate
charitable giving. Business and Society, 43, 268295.
Brammer, S., Millington, A., & Pavelin, S. (2006). Is philanthropy strategic? An analysis of the management of charitable giving in large UK companies. Business
Ethics, 15, 234245.
Brennan, L., Binney, W., & Brady, E. (2012). The raising of corporate sponsorship:
A behavioral study. Journal of Nonprofit & Public Sector Marketing, 24,
222237.
Campbell, D., Moore, G., & Metzger, M. (2002). Corporate philanthropy in the U.K.
19852000: Some empirical findings. Journal of Business Ethics, 39(1/2), 2941.
Cantrell, J., Kyriazis, E., Noble, G., & Algie, J. (2008). Towards NPOs deeper understanding of the corporate giving managers role in meeting salient stakeholders
Needs. Journal of Nonprofit & Public Sector Marketing, 20, 191212.
Choi, J., & Wang, H. (2007). The promise of a managerial values approach to
corporate philanthropy. Journal of Business Ethics, 75, 345359.
Cornwell, B., & Maignan, I. (1998). An international review of sponsorship research.
Journal of Advertising, 27(1), 121.
Cornwell, T. B. (2008). State of the art and science in sponsorship-linked marketing.
Journal of Advertising, 37(3), 4155.
Daellenbach, K. (2012). Understanding the decision-making processes for
arts sponsorship. International Journal of Nonprofit and Voluntary Sector
Marketing, 17, 363374.
Daellenbach, K., Davies, J., & Ashill, N. J. (2006). Understanding sponsorship
and sponsorship relationships-multiple frames and multiple perspectives.
International Journal of Nonprofit and Voluntary Sector Marketing, 11(1),
7387.
Drumwright, M. E. (1994). Socially responsible organizational buying
environmental concern as a noneconomic buying criterion. Journal of
Marketing, 58(3), 119.
Eisenhardt, K. M. (1989). Building theories from case study research. The Academy
of Management Review, 14, 532550.
Eisenhardt, K. M., & Graebner, M. E. (2007). Theory building from case studies:
Opportunities and challenges. Academy of Management Journal, 50(1), 2532.
Eisenhardt, K. M., & Zbaracki, M. J. (1992). Strategic decision making. Strategic
Management Journal, 13, 1737.
Farrelly, F., & Quester, P. G. (1997, June). Sports and arts sponsors: Investigating the
similarities and differences in management practices. Paper presented at the
AMA Conference Proceedings, Dublin.
Hambrick, D. C., & Mason, P. A. (1984). Upper Echelons: The organization as
a reflection of its top managers. Academy of Management. The Academy of
Management Review (pre1986), 9(2), 193206.
Hodgkinson, G., Sadler-Smith, E., Burke, L., Claxton, G., & Sparrow, P. (2009).
Intuition in organizations: Implications for strategic management. Long Range
Planning, 42, 277297.
Hoek, J. A., Gendall, P. J., & West, R. D. (1990). The role of sponsorship in marketing
planning selected New Zealand companies. New Zealand Journal of Business,
12, 8795.
103
104
K. Daellenbach et al.