How Firm Strategies Impact Size of Partner-Based Retail Networks: Evidence From Franchising

Manish Kacker*, Rajiv P. Dant, Jamie Emerson, Anne T. Coughlan

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

20 Scopus citations

Abstract

How do firms' partnering strategies impact the size of their partner-based retail networks? We draw on agency theory to address this question in the context of franchising. Our econometric analyses (based on 9 years of longitudinal balanced panel data) include assessment of data nonstationarity and estimation of a dynamic panel data model that accounts for unobserved heterogeneity and endogeneity. Our findings indicate that franchisee network size is driven more by franchisor strategies that mitigate agency costs than by strategies that simply lower entry and ongoing costs and barriers for franchisees.

Original languageEnglish (US)
Pages (from-to)506-531
Number of pages26
JournalJournal of Small Business Management
Volume54
Issue number2
DOIs
StatePublished - Apr 1 2016

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

Fingerprint Dive into the research topics of 'How Firm Strategies Impact Size of Partner-Based Retail Networks: Evidence From Franchising'. Together they form a unique fingerprint.

Cite this