Multi-Unit Franchising: A Comparative Case Analysis

Journal of Applied Business Research, Vol. 27, No. 1, January/February 2011

10 Pages Posted: 15 Dec 2010 Last revised: 13 Feb 2011

See all articles by Dildar Hussain

Dildar Hussain

University of Vienna - Institute of Business Administration

Josef Windsperger

University of Vienna

Date Written: 2011

Abstract

The objective of this study is to explain the franchisor’s choice between single-unit and multi-unit franchising. We employ a comparative case analysis method to compare the theoretical patterns with the empirical patterns of the governance forms. We selected two multi-national franchise networks based in Austria. Our findings suggest that franchisor’s multi-unit franchising strategy can be explained by monitoring costs, franchisee’s transaction-specific investments, franchisor’s system-specific assets, and franchisor’s financial resources scarcity.

Keywords: Multi-unit franchising, agency theory, transaction cost economics, resource-based and organizational capabilities view, comparative case analysis

JEL Classification: M21, L13

Suggested Citation

Hussain, Dildar and Windsperger, Josef, Multi-Unit Franchising: A Comparative Case Analysis (2011). Journal of Applied Business Research, Vol. 27, No. 1, January/February 2011, Available at SSRN: https://ssrn.com/abstract=1724683

Dildar Hussain (Contact Author)

University of Vienna - Institute of Business Administration ( email )

Bruenner Strasse 72
Vienna, A1210
Austria

Josef Windsperger

University of Vienna ( email )

Oskar-Morgenstern-Platz 1
Vienna, A1090
Austria

HOME PAGE: http://im.univie.ac.at

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