How Firm Strategies Impact Size of Partner-Based Retail Networks: Evidence from Franchising

Journal of Small Business Management, Forthcoming

51 Pages Posted: 1 Jul 2013 Last revised: 8 Jul 2013

See all articles by Manish Kacker

Manish Kacker

McMaster University - Michael G. DeGroote School of Business

Rajiv P. Dant

Michael F Price College of Business, University of Oklahoma

Jamie Emerson

Salisbury University - Franklin P. Perdue School of Business

Anne T. Coughlan

Kellogg School, Northwestern University

Date Written: June 30, 2013

Abstract

How do firms’ partnering strategies impact the size of their partner-based retail networks? We draw on agency theory to address this question in the context of franchising. Our econometric analyses, (based on nine years of longitudinal balanced panel data), include assessment of data non-stationarity and estimation of a dynamic panel data model that accounts for unobserved heterogeneity and endogeneity. Our findings indicate that franchisee network size is driven more by franchisor strategies that mitigate agency costs, than by strategies that simply lower entry and ongoing costs and barriers for franchisees.

Keywords: franchising, distribution channels, partnering strategies, retailing, agency theory, organizational performance, econometric analysis, dual distribution

JEL Classification: C33, D23, L14, L22, L81, M31, M30, M13

Suggested Citation

Kacker, Manish and Dant, Rajiv P. and Emerson, Jamie and Coughlan, Anne T., How Firm Strategies Impact Size of Partner-Based Retail Networks: Evidence from Franchising (June 30, 2013). Journal of Small Business Management, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2287507

Manish Kacker (Contact Author)

McMaster University - Michael G. DeGroote School of Business ( email )

1280 Main Street West
Hamilton, Ontario L8S 4M4
Canada

Rajiv P. Dant

Michael F Price College of Business, University of Oklahoma ( email )

Price College of Business
307 West Brooks
Norman, OK 73019
United States

Jamie Emerson

Salisbury University - Franklin P. Perdue School of Business ( email )

1101 Camden Avenue
Salisbury, MD 21801
United States

Anne T. Coughlan

Kellogg School, Northwestern University ( email )

2211 Campus Drive
Evanston, IL 60208
United States
847-491-3522 (Phone)

HOME PAGE: http://www.kellogg.nwu.edu/faculty/bio/Coughlan.htm

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