ournament theory is useful for describing behavior when reward structures are based on relative rank rather than absolute levels of output. Accordingly, management scholars have used tournament theory to describe a wide range of inter- and intraorganizational competitions, such as promotion contests, innovation contests, and competition among franchisees. While the use of tournament theory has …
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Plural forms exist when managers use two owners to perform one activity. Franchising is a plural form explained by agency theory, however, the theory is unable to explain two franchisor actions: 1) allowing franchisees to own multiple outlets and 2) co-locating company-owned and franchised outlets. We use research that describes a symbiosis between company-owned and franchised outlets to extend…
Interorganizational relationships (IORs) encompass a broad array of collaborative exchanges, including strategic alliances, joint ventures, buyer?supplier agreements, licensing, co-branding, franchising, cross-sector partnerships, networks, trade associations, and consortia. Scholarly work in this area typically focuses on particular forms, which has made it difficult to build a holistic unders…
Current explanations for franchising assume that mangers only pay attention to firm-specific economic factors. In contrast, the authors submit that social factors described by institutional theory will enhance understanding. Using a sample of 1,300 franchisors active during 1980 through 2000, the authors find evidence that both environmental and internal institutional pressures influence firms'…
We examine firms' choice of organizational governance form. Using longitudinal data on a sample of business format franchisors operating in North America, we show that the cross-sectional evidence commonly used to demonstrate support for efficient contracting explanations for organizational governance form is not robust to the year of investigation, firm effects, or selection effects. We theori…
Dual distribution systems in which firms simultaneously use vertical integration and market governance simultaneously are widely used across diverse marketing contexts (e.g., restaurants, retailing, industrial selling). A prominent example of dual distribution includes business format franchising, in which firms (i.e., the franchisors) license the operation of some of their units to franchisees…
The typical view of a marketing channel is that of a manufacturer-designed and -controlled distribution system. However, today, marketing functions, as well as market power, are more evenly distributed in the channel. In organizing and managing the modern channel, it is important to understand the business circumstances and priorities confronting channel members. How reseller firms establish th…
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Hybrid organizational forms such as franchise systems join two or more independent parties under a contract. The ability of each party to achieve its goals depend upon the relative bargaining power in the relationship established by the contract. Using transaction cost economics and Porter's (1980) characterization of sources of bargaining power, this paper argues that the franchisor can make i…
The resource-based view (RBV) of strategy holds that superior organizational routines can be a source of value if and only if there is an isolating mechanism preventing their diffusion throughout industry. Generally this isolating mechanism is taken to be the tacitness of the routines. However, the existence of franchises, a market for organizational routines, poses a challenge to this RBV - if…
Despite widespread recognition of the importance of strategy-structure fit, e.g., diversification and divisionalization, research has yet to address the possibility of similar fit issues for other structural forms of organization, such as the choice of franchised vs. company-owned governance structures. In this study, we depart from the usual debates regarding the superiority of one governance …
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Gaido Travel memiliki masalah dengan format kantor cabang mereka yang mereka nilai kurang serius dalam mengejar target penjualan. Karena itu mereka merencanakan format Franchise untuk cabang mereka selanjutnya. Sebagai Perusahaan yang baru akan membuka franchise, ada banyak hal yang masih harus dibenahi oleh Gaido Travel. Selama 4 bulan penulis melakukan observasi dan memberi saran kepada Gaido…
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