Multi-unit franchising from franchisor and franchisee perspectives: Antecedents, performance outcomes, and the optimal mini-chain size
Jacques Boulay,
Barbara Caemmerer,
Heiner Evanschitzky and
Krista Duniach
Journal of Business Research, 2020, vol. 113, issue C, 49-58
Abstract:
We assess in an integrated model the antecedents of multi-unit franchising as well as its outcomes. Based on both franchisor and franchisee data, the results related to the antecedents of multi-unit franchising are explained by the resource-based view of the firm and transaction cost economics. Furthermore, our study demonstrates that multi-unit franchising leads to positive franchisor consequences in the short term but negative outcomes for multi-unit franchisees. Owning more than three units leads to a significant drop in sales and profits per unit. These findings show that the supposed positive link between multi-unit franchising and franchisor and franchisee outcomes is not linear and thus challenges the idea that multi-unit franchising creates a win-win situation for the system and the individual franchisees.
Keywords: Multi-unit franchising; Performance; Franchise; Resource-based view; Transaction cost economics (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:113:y:2020:i:c:p:49-58
DOI: 10.1016/j.jbusres.2020.02.029
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