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2017 | OriginalPaper | Chapter

Control and Performance in Franchising Networks

Authors : Ilir Hajdini, Helge Klapper, Paulus Rommer, Josef Windsperger

Published in: Management and Governance of Networks

Publisher: Springer International Publishing

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Abstract

The aim of the study is to examine the determinants of franchisor performance by focusing on the moderating role of control as transaction cost savings and value-creating mechanism. In line with resource-based view, we argue that intangible resources of the franchisor (brand name) and the intangible resources of the franchisees (local market knowledge, human resource management, quality control, and administrative capabilities) will positively impact franchisor performance. Based on the transaction cost view, we show that environmental uncertainty is negatively related to franchisor performance. Although the resource-based view and transaction cost economics have been extensively used in previous literature, no study examined the moderating role of control on the impact of resource-based and transaction cost variables on franchisor performance. We use cross-sectional data from the franchise sector in Germany to empirically test the hypotheses.

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Title: Control and Performance in Franchising Networks
Authors: Ilir Hajdini
Helge Klapper
Paulus Rommer
Josef Windsperger
Publisher: Springer International Publishing
Book: Management and Governance of Networks
Print ISBN: 978-3-319-57275-8

Electronic ISBN: 978-3-319-57276-5

Copyright Year: 2017
DOI: https://doi.org/10.1007/978-3-319-57276-5_3