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Economics and Management of Networks

Franchising, Strategic Alliances, and Cooperatives

  • Book
  • © 2007

Overview

Editors:
  1. Gérard Cliquet

    1. IGR-IAE, University of Rennes 1, Rennes, Cedex 7, France

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  2. Mika Tuunanen

    1. Faculty of Business and Information Technology, Department of Business and Management, University of Kuopio, Kuopio, Finland

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  3. George Hendrikse

    1. RSM Erasmus University, Rotterdam, The Netherlands

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  4. Josef Windsperger

    1. Center of Business Studies, University of Vienna, Vienna, Austria

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Part of the book series: Contributions to Management Science (MANAGEMENT SC.)

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Table of contents (20 chapters)

  1. Front Matter

    Pages I-VII
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  2. Introducing ‘Economics and Management of Networks’

    1. Introducing ‘Economics and Management of Networks’

      • Josef Windsperger, Gérard Cliquet
      Pages 1-10

  3. Franchising

    1. Front Matter

      Pages 11-11
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    2. Plural Form Governance Structure Issues Performance and Efficiency in Franchising Entrepreneurship and Strategic Management Issues

      1. Plural Form in Franchising: An Incomplete Contracting Approach
        • George Hendrikse, Tao Jiang
        Pages 13-29
      2. Franchisee Versus Company Ownership — An Empirical Analysis of Franchisor Profit
        • Thomas Ehrmann, Georg Spranger
        Pages 31-50
      3. Existence of the Plural Form Within Franchised Networks: Some Early Results from the US and French Markets
        • Rozenn Perrigot, Gérard Cliquet
        Pages 51-68

    3. Governance Structure Issues

      1. The Governance Structure of Franchising Firms: A Property Rights Approach
        • Josef Windsperger, Askin Yurdakul
        Pages 69-95
      2. Governance Inseparability in Franchising: Multi-case Study in France and Brazil
        • Paulo F. Azevedo, Vivian L. S. Silva
        Pages 97-115
      3. Entrepreneurial Autonomy, Incentives, and Relational Governance in Franchise Chains
        • Olivier Cochet, Julian Dormann, Thomas Ehrmann
        Pages 117-144
      4. Beneficially Constraining Franchisor’s Power
        • Thomas Ehrmann, Georg Spranger
        Pages 145-168

    4. Performance and Efficiency in Franchising

      1. A Cointegration Analysis of the Correlates of Performance in Franchised Channels
        • Rajiv P. Dant, Manish Kacker, Anne T. Coughlan, Jamie Emerson
        Pages 169-189
      2. Franchised Network Efficiency: A DEA Application to US Networks
        • Carlos Pestana Barros, Rozenn Perrigot
        Pages 191-212
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Keywords

About this book

Previous research on the institutional structure of franchising networks (Bri- ley et al. 1991; Lutz 1995; Shane 1998; Lafontaine and Shaw 1999, 2005; - fuso 2002; Penard et al. 2003a,b) does not explain the governance structure of the franchising firm as an institutional entity that consists of two interrelated parts: Residual decision rights and ownership rights. The latter includes not only residual income rights of franchised outlets but also residual income rights of franchisor-owned outlets. Previous studies primarily examines the incentive, signalling and screening effects of fees, royalties and other contractual pro- sions from the point of view of organizational economics (see Dnes 1996 for a review) without taking into account the interactions between residual decision and residual income rights as interrelated parts of the governance structure. This paper fills this gap in the literature. According to the property rights view, de- sion rights should be allocated according to the distribution of intangible kno- edge assets between the franchisor and franchisee and ownership rights should be assigned according to the residual decision rights. Since ownership rights are diluted in franchising networks, the dilution of residual income rights of fr- chised outlets is compensated by residual income rights of company-owned o- lets. Under a dual ownership structure, company-owned outlets compensate the disincentive effect of low royalties for the franchisor, and low royalties strengthen the investment incentives for the franchisee.

Editors and Affiliations

  • IGR-IAE, University of Rennes 1, Rennes, Cedex 7, France

    Gérard Cliquet

  • Faculty of Business and Information Technology, Department of Business and Management, University of Kuopio, Kuopio, Finland

    Mika Tuunanen

  • RSM Erasmus University, Rotterdam, The Netherlands

    George Hendrikse

  • Center of Business Studies, University of Vienna, Vienna, Austria

    Josef Windsperger

Bibliographic Information

  • Book Title: Economics and Management of Networks

  • Book Subtitle: Franchising, Strategic Alliances, and Cooperatives

  • Editors: Gérard Cliquet, Mika Tuunanen, George Hendrikse, Josef Windsperger

  • Series Title: Contributions to Management Science

  • DOI: https://doi.org/10.1007/978-3-7908-1758-4

  • Publisher: Physica Heidelberg

  • eBook Packages: Business and Economics, Business and Management (R0)

  • Copyright Information: Physica-Verlag Heidelberg 2007

  • Softcover ISBN: 978-3-7908-1757-7Published: 08 January 2007

  • eBook ISBN: 978-3-7908-1758-4Published: 20 March 2007

  • Series ISSN: 1431-1941

  • Series E-ISSN: 2197-716X

  • Edition Number: 1

  • Number of Pages: VIII, 465

  • Number of Illustrations: 38 b/w illustrations

  • Topics: Organization, Industrial Organization, Marketing, Entrepreneurship

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