Retail contracting and organizational form: Alternatives to chain affiliation in the motel industry

Michael J. Mazzeo*

*Corresponding author for this work

Research output: Contribution to journalReview articlepeer-review

21 Scopus citations

Abstract

Most of the existing empirical literature on franchising investigates the share of company-owned versus franchised establishments within large retail firms. This literature typically has not considered the decision of a business owner to operate an independent business or to become a franchisee. This paper empirically analyzes what determines whether independent ownership or affiliation is observed, using data on the affiliation status of 2,293 motel establishments located throughout the United States. Heterogeneity in the underlying economic environment helps explain affiliation choices at the establishment level. The results also suggest that failure to consider independent establishments may explain the puzzling negative correlation between risk and vertical integration commonly found in the empirical franchising literature.

Original languageEnglish (US)
Pages (from-to)599-615
Number of pages17
JournalJournal of Economics and Management Strategy
Volume13
Issue number4
DOIs
StatePublished - Dec 1 2004

ASJC Scopus subject areas

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

Fingerprint Dive into the research topics of 'Retail contracting and organizational form: Alternatives to chain affiliation in the motel industry'. Together they form a unique fingerprint.

Cite this