Examining Managerial Decision-Making in a Time of Uncertainty: A Longitudinal Investigation of Pandemic Effects

The COVID-19 pandemic influenced every industry dependent on human interaction, including an unprecedented influence on sport, as many events were canceled or played in front of empty stadiums. Since 2020, this natural experiment has been a unique focus of academic literature, though with attention to on-field effects. Based on exchange theory in relationship marketing, this study makes a novel contribution by questioning the impact of exchange uncertainty on sponsorship decision-making. Accordingly, we isolate the pandemic's effect on managerial commitment by comparing sponsor retention across multiple eras of Formula One (F1), finding evidence that uncertainty in (un)fair exchange affected sponsor retention during the pandemic-influenced 2020 season, yet improved trust in subsequent seasons. Results are encouraging for marketers in that the effects of the pandemic had a smaller impact than initial industry predictions, while also rebounding significantly following an unprecedented global event, underscoring the resilient exchange relationships within global sport.