Antecedents and Consequences of Franchising: Past Accomplishments and Future Challenges

Abstract

Franchising is a popular and multifaceted business arrangement that has attracted considerable research attention. Past inquiry has focused on franchising’s antecedents, consequences, and factors that moderate these relationships. The authors review recent progress within franchising research and identify gaps in the literature. They also describe how researchers could build greater knowledge about franchising by further leveraging various organizational theories and by drawing from a number of business and social science fields whose insights have not yet significantly influenced franchising research.

Microfranchise emergence and its impact on entrepreneurship

“…The paucity of published research articles on franchising in the top entrepreneurship journals, underscores the need for more rigorous study of franchising relationships and processes (Combs, Ketchen, Shook and Short 2011). A review of the extant literature indicates that agency theory and resource scarcity theory are the conceptual frameworks that have been relied upon in theoretically grounded franchising research.…”

Evolution in franchising: Trends and new perspectives

“…which states franchising as part of a life cycle, where this system is adopted by firms to overcome scarce resources in their effort to growth, reverting in the future toward company ownership (Gillis et al, 2011). Oxenfeldt and Kelly were the first to formulate the termed resource scarcity view, which asserts that a nascent firm builds a brand in order to create economies of scale in advertising and purchasing (J. G. Combs et al, 2010;Oxenfeldt & Kelly, 1969). New ventures need faster growth in comparison to established firms in order to compete successfully.…”

“…According to the resource scarcity view, franchisees are seen as an inexpensive source of capital, enabling the franchisor to raise capital at a lower cost than other possible arrangements (Norton, 1988). Another prediction of the resource scarcity view is that franchisors will maintain the ownership over new outlets and will tend to repurchase the old ones in the extent to which economies of scale are achieved (J. G. Combs et al, 2010), in a phenomenon known as ownership redirection (Dant, Paswan, & Kaufmann, 1996).…”

“…These issues are investigated on the lenses of many perspectives, but five of them are the most prevalent (Dant et al, 2011) -resource acquisition theory (Oxenfeldt & Kelly, 1969), agency theory (Fama & Jensen, 1983a, 1983b, transaction cost analysis (WILLIAMSON, 1985), signaling Theory (Gallini & Lutz, 1992;Gallini & Wright, 1990) and property rights theory (Demsetz, 1966;Hart & Moore, 1990;Maness, 1996) -although scholars have been using many other theoretical perspective approaches as well -stakeholder theory (D. Altinay & Miles, 2006), tournament theory (James G. Combs, Ketchen Jr, & Short, 2011;Gillis, McEwan, Crook, & Michael, 2011) , institutional theory (D. Altinay & Miles, 2006), RBV (Barthélemy, 2008;Fladmoe-Lindquist, 1996), upper echelons theory (J. G. , learning theory (J. G. Combs, Ketchen, Shook, & Short, 2010); plural theory (Dant & Kaufmann, 2003), risk-sharing theory (Hsu, Jang, & Canter, 2010), social exchange theory (James G. Combs et al, 2011), resource dependence theory (Dant & Gundlach, 1999), among other perspectives.…”

Monitoramento E Coordenação Em Redes De Franquia: Dispersão Geográfica E Automação Impactando O Mix Contratual

“…Estudo mais recentes, inclusive, tem apontado para a convergência entre a teoria da agência e a visão de recursos escassos (COMBS et al, 2011). Em resumo, essa abordagem combinada indica que, embora custos de coordenação sejam relevantes para a alocação de propriedade (como verificado na presente pesquisa), não é possível descartar a importância da obtenção de escala mínima eficiente em aspectos como marketing e distribuição, por exemplo.…”