Franchising and Alternative Forms of Contract to Organize Vertical Restraints: Evidence from French Networks

Chaudey, Magali; Fadario, Muriel

doi:10.1007/978-3-7908-2662-3_7

Cited by 7 publications

(5 citation statements)

References 27 publications

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“…Plural form has been examined through various established theoretical approaches, such as the signaling theory (Gallini and Lutz ), the resource‐based view (Dant and Kaufmann ), property rights and transaction cost theories (Windsperger , ; Windsperger and Dant ), agency theory (Chaudey and Fadario ; Lafontaine ), population ecology (Perrigot ), and institutional theory (Barthélemy, ; Combs, Michael, and Castrogiovanni ).…”

Section: Literature Reviewmentioning

confidence: 99%

Intangible Resources and Plural Form as Drivers of Franchise Internationalization: Examination within a Two-Country Perspective

Perrigot¹,

López-Fernández²,

Eroğlu³

2013

Journal of Small Business Management

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International audienceThis study focuses on drivers of franchise network internationalization, namely, intangible resources and plural form. Intangible resources refer to those that the franchisor acquires over time and are deemed instrumental to firm success, namely, brand name, monitoring, and know-how transfer abilities. Plural form refers to the coexistence of franchised outlets and company-owned outlets within the same network. The empirical study involves 853 U.S. and French networks. Findings indicate that the percentage of Company-owned outlets in international networks is lower than that in purely domestic networks, and this holds for both the combined data sample (United States and France) and the U.S. sample on its own. Moreover, U.S. franchisors are shown to be much more internationalized, with a smaller percentage of company-owned outlets than their French counterparts. The intangible resource that most strongly affects franchise internationalization is brand-name recognition, whereas there is partial support for the impact of two other intangible resources, namely, monitoring and know-how transfer ability. The results of the logistic regression models underscore the importance of intangible resources in franchise network internationalization as well as the significant and negative impact of percentage of company-owned outlets. Finally, the drivers of internationalization are not found to be statistically different between both countries

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Section: Literature Reviewmentioning

confidence: 99%

Intangible Resources and Plural Form as Drivers of Franchise Internationalization: Examination within a Two-Country Perspective

Perrigot¹,

López-Fernández²,

Eroğlu³

2013

Journal of Small Business Management

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“…Gallini and Lutz 1992) and the resource-based theory (cf. Dant and Kaufmann 2003), or the property rights and transaction cost theories (Windsperger and Dant 2006;Windsperger 2004aWindsperger , 2004b, or the theory of incentives and the agency theory (Chaudey and Fadario 2004). Other related articles have focused on particular elements of the larger nomological network surrounding the plural forms phenomenon such as innovation (Cliquet and Nguyen 2004;Lewin-Solomons 1999), the organizational learning process (Sørensen and Sørensen 2001), or the royalty rate (Pénard, Raynaud, and Saussier 2003).…”

Section: Introductionmentioning

confidence: 99%

A Cross-Cultural Comparison of the Plural Forms in Franchise Networks: United States, France, and Brazil

Dant

Perrigot

Cliquet

2008

J Small Business Management

116

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This paper explores the phenomenon of plural forms (i.e., the simultaneous coexistence of franchised and company-owned outlets, operationally, the proportion of company-owned units in franchise systems based on literature, in franchising across three countries from three continents, namely the United States, France, and Brazil in what is ostensibly the first cross-cultural comparison of its kind. Based on 2003 secondary data, we carry out a series of inferentially grounded analyses involving the plural forms phenomenon from an exploratory perspective. Though subsequently, comparative regression models are also evaluated using eight purported determinants of the use of the plural forms, the essential character of the paper remains essentially exploratory. The results show that the proportion of company-owned outlets is almost three times greater in France and Brazil as compared to the United States. We also found that in the U.S. sample, three of the eight predictors significantly predict the occurrence of plural forms (namely, average total required investment and cash liquidity requirement have a negative impact, and company age has a positive impact); the French model was not statistically significant, whereas in the Brazilian

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“…Some have argued that in the plural form, full vertical integration becomes a more credible threat of risk and that the plural form provides better access to information on cost and market prices (Porter, 1980;Harrigan, 1984;Mols, 2000). Accordingly, the plural form has been analyzed through various theoretical lenses, including signaling theory (Gallini & Lutz, 1992), the resource-based view (Dant & Kaufmann, 2003), property rights (Windsperger, 2004;Windsperger & Dant, 2006), or incentive-based theory (Chaudey & Fadario, 2004;Dant et al, 2008). Marketing scholars have examined under what conditions plural forms lead to greater efficiency, using agency theory (Rubin, 1978;Brickley & Dark, 1987;Martin, 1988;Norton, 1988;Bergen et al, 1992;Gallini & Lutz, 1992;Lafontaine, 1992;Dutta et al, 1995;Shane, 1996Shane, , 1998 or transaction cost economics (John & Weitz, 1988;Heide, 1994Heide, , 2003Dutta et al, 1995;Dant et al, 1996;Rindfleisch & Heide, 1997;Mols, 2000).…”

Section: Theoretical Background and Propositionsmentioning

confidence: 99%

The Prevalence and Performance Impact of Synergies in the Plural Form

Meiseberg

2012

Manage Decis Econ

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Using the plural form helps franchised chains cope with the four ‘franchising imperatives’—system growth, chain uniformity, local responsiveness, and systemwide adaptation. Yet, despite the obvious importance of chain composition, empirical research on synergies in the plural form is largely absent, and insights on performance implications of the plural form are equally scarce. Consequently, with detailed data from 122 chains, this paper provides what is ostensibly the first in‐depth examination of the prevalence and performance effects of synergies that franchisors actually achieve by using the plural form. The study concludes with managerial implications for governance design in franchised chains. Copyright © 2012 John Wiley & Sons, Ltd.

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Franchising and Alternative Forms of Contract to Organize Vertical Restraints: Evidence from French Networks

Cited by 7 publications

References 27 publications

Intangible Resources and Plural Form as Drivers of Franchise Internationalization: Examination within a Two-Country Perspective

Intangible Resources and Plural Form as Drivers of Franchise Internationalization: Examination within a Two-Country Perspective

A Cross-Cultural Comparison of the Plural Forms in Franchise Networks: United States, France, and Brazil

The Prevalence and Performance Impact of Synergies in the Plural Form

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