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Determinants of multi-unit franchising: an organizational economics framework

Abstract : In this paper, we use organizational economics theories to explain the percentage of multi-unit franchisees within franchise chains. We use transaction cost theory, property rights view and agency theory to formulate three research hypotheses that are related to franchisees' transaction-specific investments, intangibility of system-specific assets and risk of franchisee free-riding, respectively. These hypotheses are tested in the French franchising context by using a sample of 138 franchisors. The empirical results are largely supportive of the hypotheses. We extend the franchising literature by arguing that the explanation of the franchisor's use of multi-unit franchising requires the combined application of different theoretical perspectives.
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https://halshs.archives-ouvertes.fr/halshs-00816128
Contributor : Naïla Louise-Rose <>
Submitted on : Friday, April 19, 2013 - 6:31:25 PM
Last modification on : Thursday, January 14, 2021 - 1:21:38 PM

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Dildar Hussain, Rozenn Perrigot, Karim Mignonac, Asâad El Akremi, Olivier Herrbach. Determinants of multi-unit franchising: an organizational economics framework. Managerial and Decision Economics, Wiley, 2013, pp.161-169. ⟨10.1002/mde.2580⟩. ⟨halshs-00816128⟩

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