New PDF release: New Developments in the Theory of Networks: Franchising,

By Mika Tuunanen, Josef Windsperger, Gérard Cliquet, George Hendrikse

ISBN-10: 3790826146

ISBN-13: 9783790826142

The conception of networks goals at constructing theoretical perspectives at the layout and administration of alliances, franchise chains, licensing, joint ventures, cooperatives, and enterprise capital kinfolk. the present pattern in economics and administration of networks is twofold: First there's a powerful tendency towards program of theoretical techniques built either in organizational economics, strategic administration and association thought. the second one pattern refers back to the improvement of extra integrative perspectives on networks. in particular, combining organizational economics, strategic administration and relational perspectives on networks are very promising study instructions. ranging from this prestige of analysis, the present ebook emphasizes community learn as a theory-driven box through delivering new views on agreement layout, choice and possession rights, price construction, wisdom administration and the function of social capital in franchising networks, alliances and cooperatives.

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Additional info for New Developments in the Theory of Networks: Franchising, Alliances and Cooperatives

Sample text

The formulation of the Likert-type questionnaire items emerged from in-depth interviews with franchisors, consultants and franchisees and the final version of the questionnaire was pretested with six franchisors. In total, 870 questionnaires were sent out. The response rate was about 20%, but 4 of the respondents had closed down. Of the active respondents, 19 used alternative forms of distribution such as licensing. Finally the sample covered 163 franchise chains. The dataset provides information on the franchise chain as a whole, including advertising expenditure, degree of specificity of investments per outlet, customer loyalty, franchisee profile in terms of selection and training and contractual clauses related to the degree of delegation, monitoring and enforcement terms.

In sum, franchisees’ status as residual claimants is precisely what promotes their tendency to free-ride on the brand name (Lafontaine and Raynaud 2002; Bercovitz 2004). Therefore, once franchising has been selected as a vehicle for growth, franchisors must decide how to manage franchisees in order to maintain uniformity across units and thereby to preserve the brand name value (Caves and Murphy 1976; Rubin 1978; Bradach 1997). e. the degree of franchisee autonomy – is a basic control mechanism to deal with this problem.

How does our study extend the results in the literature? The major contribution of our study is first the clarification of the relationship between contractual completeness, decision rights, and complexity, and second the explanation of the determinants of contractual completeness in franchise relationships by applying transaction cost theory, agency theory, property rights theory, relational view of governance and organizational capability theory. What are the business/managerial implications of (the degree of) contractual completeness in franchising?

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New Developments in the Theory of Networks: Franchising, Alliances and Cooperatives by Mika Tuunanen, Josef Windsperger, Gérard Cliquet, George Hendrikse


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