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
Date Written: 2011
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: Suggested Citation