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Vertical integration in Franchise systems: Agency theory and resource explanations

Mick Carney and Eric Gedajlovic

Strategic Management Journal, 1991, vol. 12, issue 8, 607-629

Abstract: The ownership strategies of 128 retail franchising systems are examined in the light of existing agency and resource scarcity explanations of this organizational form. Findings suggest that franchiser ownership strategies are more heterogeneous than previously recognized, and that neither explanation, alone accounts for observed ownership patterns. A path model of franchiser ownership patterns embodying agency and resource scarcity elements is developed that is consistent with empirical findings.

Date: 1991
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