Plural Form and Franchisor Performance: Early Empirical Findings from Europe

Perdreau, Frédéric; Nadant, Anne‐Laure Le; Cliquet, Gérard

doi:10.1007/978-3-7908-2615-9_6

Cited by 14 publications

(13 citation statements)

References 38 publications

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“…However, for the time period for which data were collected, these costs may have been different-at that time, Facebook was relatively new and the availability of human resources for professionally maintaining and effectively using the Facebook page (in terms of marketing communication updates, monitoring, and moderating consumer responses and discussions as well as generating customer insights) may have been different. 4 Additionally, for the time 2 Although franchisor resources can also be measured in terms of financial (e.g., profits, current assets) and human resource metrics (Perdreau, Le Nadant, and Cliquet 2011), data on these measures are not easily available for all franchisors. For example, some financial metrics are only available for large, publicly traded franchisors-this skews the sample by preventing the inclusion of smaller, privately held franchisors.…”

Section: Theorymentioning

confidence: 99%

“…2 2 Although franchisor resources can also be measured in terms of financial (e.g., profits, current assets) and human resource metrics (Perdreau, Le Nadant, and Cliquet 2011), data on these measures are not easily available for all franchisors. For example, some financial metrics are only available for large, publicly traded franchisors—this skews the sample by preventing the inclusion of smaller, privately held franchisors. …”

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confidence: 99%

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Antecedents of Early Adoption and Use of Social Media Networks for Stakeholder Communications: Evidence from Franchising*

Perrigot

Kacker

Basset

et al. 2012

Journal of Small Business Management

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The motivation for this paper arises from the importance of stakeholder communications for firms and the rapid emergence of social media networks as a means of such communications. Our purpose is to understand the early adoption and use of social media networks for such communications by firms at a point in time when such networks were relatively new. Specifically, we examine the adoption and use of Facebook (the most popular social networking site) by franchisors and focus on two questions: (1) antecedents of early adoption of Facebook by franchisors, mainly in terms of system age, size, organizational form, advertising royalty rates, industry, and internationalization; and (2) variations in use of Facebook (in terms of content) by these franchisors and the way these variations relate to the characteristics of the franchisors and their systems. Our empirical study covers 408 franchisors doing business in the French market. The analysis approach is quantitative, with the use of t‐tests, Pearson chi‐square tests, and a logistic regression model as well as a content analysis of the franchisors' Facebook pages. At the time we collected data, we found that only 21.3 percent of the franchisors had a presence on Facebook. Several characteristics of the system (e.g., percentage of company‐owned outlets, advertising royalty rates, and industry) influence whether a franchisor has a presence on Facebook as well as the nature of content on the relevant Facebook page. We draw on organizational theories and institutional economic theories to offer potential explanations for our preliminary investigation. These research findings can help the franchisors better understand the role of social media networks for stakeholder communications. In particular, our results offer insights for smaller franchisors, in terms of when and how they adopt communication innovations to compete against larger firms.

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Section: Theorymentioning

confidence: 99%

mentioning

confidence: 99%

Antecedents of Early Adoption and Use of Social Media Networks for Stakeholder Communications: Evidence from Franchising*

Perrigot

Kacker

Basset

et al. 2012

Journal of Small Business Management

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“…Most of the previous studies investigate the performance implications of governance structures (e.g. Ehrmann and Spranger, ; Yin and Zajac, ; Barthélemy, ; Mitsuhashi et al ., ; Perrigot et al ., ; Combs et al ., ; Perdreau et al ., ; Kosova et al ., ). Our study extends the view of Barthélemy () by investigating the impact of franchisees' intangible resources, in addition to the brand name assets and system‐specific resources on network performance.…”

Section: Introductionmentioning

confidence: 99%

Real Options, Intangible Resources and Performance of Franchise Networks

Gorovaia

Windsperger

2013

Manage Decis Econ

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This study investigates the performance of franchise networks through the lens of the resource‐based and real options theory. First, according to the resource‐based view, we argue that the intangible resources of the franchisor (system‐specific know‐how and brand name) and the intangible outlet‐specific resources of the franchisees (exploration and exploitation capabilities) positively impact the performance of the franchise system. Second, on the basis of the real option perspective, we show that the franchisor's use of an explicit call option in the franchise contract—as a clause that gives him or her the right to acquire franchise units—increases the franchisor's managerial flexibility and incentives for intangible investments and hence improves the performance of the franchise network. We test the hypotheses with cross‐sectional data from the franchise sector in Germany. The data provide some support of the hypotheses. Our study contributes to the franchise and interorganizational network literature as no prior study has applied the real option perspective to franchising. Copyright © 2013 John Wiley & Sons, Ltd.

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“…With Bradach's (1995Bradach's ( , 1997Bradach's ( , 1998 early work, the broad consensus is that using the plural form is necessary to meet four crucial managerial challenges-the four 'franchising imperatives' of (i) geographic expansion of the chain, (ii) brand protection and chain uniformity, (iii) competitiveness and local responsiveness, and (iv) service and/or product concept evolution and systemwide adaptation. Yet, the topic of plural forms is a difficult one for studies on organizations that often try to find the one best solution to a particular problem, as the plural form may tend not to exhibit one single optimal form (Perdreau et al, 2011). Past research has primarily focused on documenting the existence of the plural form in different industries and on the plural form's various antecedents, such as information asymmetry (Heide, 1994(Heide, , 2003, uncertainty (John & Weitz, 1988;Dutta et al, 1995;Srinivasan, 2006), or transaction costs (Anderson, 1988;Bergen et al, 1992;Weiss & Anderson, 1992;Dahlstrom & Nygaard, 1994;Rindfleisch & Heide, 1997;Dahlstrom & Nygaard, 1999a).…”

Section: Introductionmentioning

confidence: 99%

“…establishing a link between particular governance approaches and outcome variables seems an important research priority'. Combs et al (2004), Perdreau et al (2011), Perrigot et al (2009) and Watson et al (2005) made equally strong cases for the need of studying performance effects in the plural form. Combs et al (2011, p. 104) emphasized '[d]ocumenting synergies between franchised and company-owned outlets, systemwide and within the same geographic market ' and '[i]nvestigating the performance effect of synergies among company-owned and franchisee outlets' as two major gaps in franchising research.…”

Section: Introductionmentioning

confidence: 99%

The Prevalence and Performance Impact of Synergies in the Plural Form

Meiseberg

2012

Manage Decis Econ

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Using the plural form helps franchised chains cope with the four ‘franchising imperatives’—system growth, chain uniformity, local responsiveness, and systemwide adaptation. Yet, despite the obvious importance of chain composition, empirical research on synergies in the plural form is largely absent, and insights on performance implications of the plural form are equally scarce. Consequently, with detailed data from 122 chains, this paper provides what is ostensibly the first in‐depth examination of the prevalence and performance effects of synergies that franchisors actually achieve by using the plural form. The study concludes with managerial implications for governance design in franchised chains. Copyright © 2012 John Wiley & Sons, Ltd.

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Plural Form and Franchisor Performance: Early Empirical Findings from Europe

Cited by 14 publications

References 38 publications

Antecedents of Early Adoption and Use of Social Media Networks for Stakeholder Communications: Evidence from Franchising*

Antecedents of Early Adoption and Use of Social Media Networks for Stakeholder Communications: Evidence from Franchising*

Real Options, Intangible Resources and Performance of Franchise Networks

The Prevalence and Performance Impact of Synergies in the Plural Form

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