Network Form and Performance. The Case of Multi-Unit Franchising

Muriel Fadairo (), Cintya Lanchimba and Josef Windsperger
Additional contact information
Muriel Fadairo: GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique
Josef Windsperger: Universität Wien = University of Vienna

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Abstract: Multi-unit franchising (MUF) is a governance form inside franchising networks where the franchisor transfers to the franchisees the right to own and operate more than one outlet. While previous empirical literature has revealed various advantages of MUF as compared to single-unit franchising (SUF), we study the impact of this governance form on the network performance, taking into account different contexts. Our results from propensity score matching show that MUF leads to higher performance. However, non-parametric estimations highlight thresholds suggesting that a mix of SUF and MUF is a more efficient governance form than a pure MUF network.

Keywords: Network governance; franchising; propensity score matching; nonparametric regressions (search for similar items in EconPapers)
Date: 2015-03-09
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ger and nep-net
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01128075v1
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Working Paper: Network Form and Performance. The Case of Multi-Unit Franchising (2015)
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