Plural form franchise networks: A test of Bradach’s model

Cliquet, Gérard; Pénard, Thierry

doi:10.1016/j.jretconser.2011.11.005

Cited by 34 publications

(17 citation statements)

References 75 publications

(114 reference statements)

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“…Several franchising researchers (e.g. Cliquet and Pénard 2012;Sorenson and Sørensen 2001) pointed out that franchisees may be more inclined than company managers to engage in local adaptation, which may imply that franchisees are more inclined than company managers to actively engage in knowledge sharing and networking behaviours. In a similar vein, multi-unit franchisees may behave differently from single-unit franchisees due to different strategic orientations and a larger scale of activities (Grünhagen and Mittelsteadt 2005;Dant et al 2013).…”

Section: Limitations and Suggestions For Future Researchmentioning

confidence: 99%

Entrepreneurial networking: a blessing or a curse? Differential effects for low, medium and high performing franchisees

2017

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Recent studies have called for a better understanding of the link between networking and entrepreneurial performance. We provide such understanding in three ways: by focusing on a specific entrepreneurial context (franchise systems), by developing a multifaceted theoretical framework and by highlighting a contingency that may affect the networkingperformance link. We combine knowledge and learning perspectives with a networking perspective to develop and test a multi-faceted framework on the effects of franchisee networking with peers within a franchise system ('peer networking') on franchisee unit performance. In particular, we argue that the performance benefits that franchisees draw from networking with their peers vary between low, medium and high performing franchisees. We use ordinary least squares (OLS) and Quantile Regression analyses to test our hypotheses with empirical data from a Dutch franchise system. Our results confirm that structural, resource and relational facets of franchisee peer networking affect unit performance, and that they benefit and harm low, medium, and high performing franchisees differently.

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Section: Limitations and Suggestions For Future Researchmentioning

confidence: 99%

Entrepreneurial networking: a blessing or a curse? Differential effects for low, medium and high performing franchisees

2017

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“…Bradach's central argument is that by using the plural form-a mix of company-owned units and franchised units-chain management is more likely to meet four primary challenges in franchising (Bradach 1997(Bradach , 1998: growth, uniformity, local responsiveness and system-wide adaptation. This plural form argument has led to an extensive body of literature (e.g., Botti, Briec, and Cliquet 2009;Cliquet and Penard 2012;Dant, Perrigot, and Cliquet 2008;Perrigot and Herrbach 2012;Perryman and Combs 2012), sometimes going beyond the field of franchising research-see, for example, Heide's (2003) study on the plural form phenomenon in the context of industrial purchasing. Bradach (1998) observed that former employees as well as MU franchisees tend to replicate the management structures observed in the company arrangement in terms of control, performance evaluation systems and operations reporting schemes.…”

Section: Multiunit Franchising As Hierarchymentioning

confidence: 99%

Growth, Uniformity, Local Responsiveness, and System-Wide Adaptation in Multiunit Franchising

Boulay

Caemmerer

Evanschitzky

et al. 2016

Journal of Small Business Management

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Using the resource-based view framework, we investigate the link between multiunit franchising (MUF) and performance on four key challenges in franchise chain management: growth, uniformity, local responsiveness, and system-wide adaptation. Our findings support the assertion that system growth is positively related to MUF rate within a system, in particular in relation to geographic expansion. Interestingly, while uniformity does not seem to be related to MUF rate, we find marginal support for an inverted u-shaped relationship between system-wide adaptation and MUF rate. Furthermore, the data suggest that local responsiveness and MUF rate are related in a u-shaped function.

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“…The interdependence of franchisor and franchisee creates the need for an organizational arrangement, the plural-formed franchise system, which consists of both corporate-owned units and franchised units (Bradach, 1997;Michael, 2000;Kidwell and Nygaard, 2011;Cliquet and Penard, 2012;Perryman and Combs, 2012). The international expansion and success of such systems strongly depends on strategies that safeguard brand names against channel member shirking and free riding, forms of withholding effort that can be defined as an undersupply of quality in interfirm relationships (Wathne and Heide, 2000).…”

Section: Introductionmentioning

confidence: 99%

Differential effects of plural ownership and governance mechanisms in limiting shirkers and free riders

Silkoset¹,

Nygaard²,

Kidwell³

2016

COC

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Using evidence from paired franchisor-franchisee dyads, this study identifies how plural formed ownership mechanisms curb the risk of shirking and free riding in franchise systems.These risks have damaging effects on the invested capital of franchisee entrepreneurs. Although shirking and free riding produce a major source of uncertainty for the franchisee entrepreneur it can be limited by plural formed governance dimensions. These mechanisms have different effects based on unit status, i.e., company owned-units versus franchisee-units. We tested our model using a paired-dyadic data approach to mitigate the problem of shared-method variance among the psychometric measures. Results support the contention that competition limits shirking and free riding across inter-firm relationships, but did not support the hypothesized role of relational mechanisms in lowering potential shirking and free riding. Also, endogeneity test uncovered that dealer's self-selected into either one of the plural form contracts. Drawing on the economics, marketing and management literatures, this study presents a basis for further investigation by placing international franchising entrepreneurship into a broader context of transactional and relational governance.

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Plural form franchise networks: A test of Bradach’s model

Cited by 34 publications

References 75 publications

Entrepreneurial networking: a blessing or a curse? Differential effects for low, medium and high performing franchisees

Entrepreneurial networking: a blessing or a curse? Differential effects for low, medium and high performing franchisees

Growth, Uniformity, Local Responsiveness, and System-Wide Adaptation in Multiunit Franchising

Differential effects of plural ownership and governance mechanisms in limiting shirkers and free riders

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