The relationship between team structure and technological advancement in Formula One : A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Commerce and Management at Lincoln University

Abstract

Formula One is renowned for its global reach, technological advancements, and the skill required to compete at the highest level. While the sport has historically been associated with innovation and the evolution of technology, there is a growing concern that Formula One has become more conservative and risk-averse in recent years, with regulations limiting true innovation. Additionally, financial pressures have shifted the focus towards incremental evolution rather than groundbreaking innovations, leading to a lack of diversity in engine manufacturers and a concentration of power among a few dominant teams. This thesis aims to investigate the role of team structure in determining the level of technological innovation or evolution pursued by Formula One teams. It explores the hypothesis that Entrepreneurial teams are more likely to drive Innovation, while corporate teams tend to focus on evolutionary changes within the sport. By analysing secondary data and conducting statistical analysis, the study examines the historical progression of Formula One, ownership structures within the sport, and the evaluation of technological development encompassing both innovation and evolution. The analysis of the data reveals that radical innovations in Formula One were predominantly driven by Entrepreneurial teams in the early years of the sport. However, as corporate participation increased, revolutionary innovation diminished over time. This contradicts the conventional theory that suggests larger firms with greater capital investments are more successful. Corporate interests, risk aversion, cost control, and profitability concerns have led to stringent rules and regulations that restrict teams' ability to innovate. To reclaim its status as the pinnacle of motorsports, Formula One must shift its focus towards nurturing and supporting entrepreneurial organisations that drive innovation. By fostering an environment that empowers these entities, the sport can rejuvenate its reputation as a breeding ground for groundbreaking technological advancements. While this study provides valuable insights into the relationship between team structure and technological development in Formula One, further research using primary data collection methods and updated information is needed to explore additional linkages and relationships.