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

43 Pages Posted: 10 Mar 2015

See all articles by Muriel Fadairo

Muriel Fadairo

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE)

Cintya Lanchimba

National Polytechnic School - National Polytechnic Institute; University of Lyon 3; University of Saint Etienne

Josef Windsperger

University of Vienna

Date Written: March 2015

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

JEL Classification: M21, L14 , C14

Suggested Citation

Fadairo, Muriel and Lanchimba, Cintya and Windsperger, Josef, Network Form and Performance. The Case of Multi-Unit Franchising (March 2015). Available at SSRN: https://ssrn.com/abstract=2575648 or http://dx.doi.org/10.2139/ssrn.2575648

Muriel Fadairo (Contact Author)

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE) ( email )

93, chemin des Mouilles
Ecully, 69130
France

Cintya Lanchimba

National Polytechnic School - National Polytechnic Institute

Ladrón de Guevara E11 - 253
Quito, Pichincha
Ecuador

University of Lyon 3 ( email )

1 rue de Université
B.P. 0638
Lyon, 69007
France

University of Saint Etienne ( email )

6, rue basse des rives
Saint Etienne, 42023
France

Josef Windsperger

University of Vienna ( email )

Oskar-Morgenstern-Platz 1
Vienna, A1090
Austria

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

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