Contractual design and networks performance: empirical evidence from franchising

Chaudey, Magali; Fadairo, Muriel

doi:10.1080/00036840701704428

Cited by 21 publications

(11 citation statements)

References 7 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…To ensure high internal validity, the sample is French-based to control for country effect (De Mooij and Hofstede, 2002) and is sector-specific to control for sector effect (Laanti et al, 2007). We chose the French fashion retailing sector as it has developed a significant presence internationally over time 2014b) and operates very diverse organizational structures (Chauday and Fadairo, 2010). Such organizational variety combined with a high international profile allowed observations of expansion decisions and FOM dynamics.…”

Section: Sample and Data Collectionmentioning

confidence: 99%

Retailers׳ expansion mode choice in foreign markets: Antecedents for expansion mode choice in the light of internationalization theories

Picot-Coupey

Burt

Cliquet

2014

Journal of Retailing and Consumer Services

View full text Add to dashboard Cite

International audienceWhenever a retail company expands its store network in a foreign market, decisions have to be made about how this can be achieved. Existing studies of retail internationalization have usually analyzed the "entry mode" choice as an end in itself, and not as the start of a firm's international development. In addition, there is much debate in the academic literature about the antecedents for retail foreign operation mode choice and the relevance of generic internationalization theories to international retailing. Therefore, the objectives of this research are (1) to investigate the paths of entry and subsequent expansion modes pursued by retailers in international markets and (2) to develop and test a model of expansion mode antecedents in the light of generic business internationalization theories. This is achieved on the basis of data collected from 43 French fashion retailers and a PLS-SEM approach. Results show that (1) retailers clearly differentiate between entry and expansion modes; (2) the international marketing plan, the perceived attractiveness of the foreign market, and strategic and ownership conditions are the key antecedents for the choice of an expansion mode. After comparing the results with the explanations proposed by the generic internationalization theories, a multi-theoretical framework is proposed which draws from the Uppsala internationalization process model, network theory and the born-global theory. The findings provide a wealth of information for retailers' use in choosing appropriate foreign operation modes

show abstract

Section: Sample and Data Collectionmentioning

confidence: 99%

Retailers׳ expansion mode choice in foreign markets: Antecedents for expansion mode choice in the light of internationalization theories

Picot-Coupey

Burt

Cliquet

2014

Journal of Retailing and Consumer Services

View full text Add to dashboard Cite

show abstract

“…Contract length appears to be unimportant to achieving positive outcomes. Of six studies, only Chaudey and Fadairo (2008, ,) found a positive correlation between constraint contracts and results, and length was only one of the six variables in the constraint contracts measure. Moreover, tying agreements in the contract, i.e.…”

Section: Results: a Framework Of Factors Related To Outcomes Of Francmentioning

confidence: 99%

“…None of the outcomes becomes unequivocally more positive. Four of the seven studies examining the relationship with financial performance found positive effects (Chaudey and Fadairo , ; Spinelli et al . ; Thompson ), but the other three studies reported negative effects (Inma and Debowski ; Price ; Sorenson and Sørensen ).…”

Section: Results: a Framework Of Factors Related To Outcomes Of Francmentioning

confidence: 99%

Making Franchising Work: A Framework Based on a Systematic Review

Nijmeijer

Fabbricotti

Huijsman

2013

Int J Management Reviews

View full text Add to dashboard Cite

There is a large and fragmented literature that examines the nature of franchising. This paper aims to collect all the empirical evidence on the factors that make franchising work and to integrate this evidence in a framework. A narrative synthesis was performed of 126 peer‐reviewed empirical journal articles. This review shows how the outcomes of franchising are determined by five major clusters of factors: ownership structure, business format design, contract design, behavior of the franchisor and the franchisee and their interaction, and the age and size of the system and its units. It identifies what franchisors and franchisees need to do to be successful and which evidence gaps and conflicting results remain. To yield better outcomes for both the franchisor and the franchisee, they should work on a recognizable brand name and a good working relationship; in addition, they should have suitable skills and attitudes as well as contractual exclusive territories. For further improvement of franchisee outcomes, high‐quality franchisor support, decentralized decision‐making, selection tools and fair contracts are essential. The effects of a high franchise proportion, active ownership, knowledge exchange and standardized operating instructions are contingent on other structural and contextual factors in the system. Conflicts and tying should be prevented. Hardly any research has been undertaken into which franchise designs are valued by customers. The authors have launched a research agenda for further research, from various theoretical perspectives, into the interactions between system elements, actors and contexts.

show abstract

“…Thus, the multiple imputation method replaces missing values at random, and does not generate bias in the allocation of imputed values. Masten (1996), , Saussier and Yvrande-Billon (2004) and Chaudey and Fadairo (2010). We use the two-step Heckman method to handle this problem.…”

Section: Advantages Of Franchisingmentioning

confidence: 99%

Network Form and Performance. The Case of Multi-Unit Franchising

2015

Self Cite

View full text Add to dashboard Cite

Multi-unit franchising (MUF) is a governance form inside franchising networks where the franchisor transfers to the franchisees the right to own and operate more than one outlet. While previous empirical literature has revealed various advantages of MUF as compared to single-unit franchising (SUF), we study the impact of this governance form on the network performance, taking into account different contexts. Our results from propensity score matching show that MUF leads to higher performance. However, non-parametric estimations highlight thresholds suggesting that a mix of SUF and MUF is a more efficient governance form than a pure MUF network.

show abstract

Contractual design and networks performance: empirical evidence from franchising

Cited by 21 publications

References 7 publications

Retailers׳ expansion mode choice in foreign markets: Antecedents for expansion mode choice in the light of internationalization theories

Retailers׳ expansion mode choice in foreign markets: Antecedents for expansion mode choice in the light of internationalization theories

Making Franchising Work: A Framework Based on a Systematic Review

Network Form and Performance. The Case of Multi-Unit Franchising

Contact Info

Product

Resources

About