Detailansicht
Single unit franchising versus multi unit franchising
agency theory and transaction cost theory based explanations
Lindia-Maria Moritz
Art der Arbeit
Diplomarbeit
Universität
Universität Wien
Fakultät
Fakultät für Wirtschaftswissenschaften
Betreuer*in
Josef Windsperger
DOI
10.25365/thesis.15456
URN
urn:nbn:at:at-ubw:1-30001.16525.708964-2
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Abstracts
Abstract
(Deutsch)
Since the 1980s major importance in the growth of franchising systems can be attributed to the advent of a new governance form due to multi unit franchising. In a multi unit agreement a franchisee is permitted the right to establish a mini chain of outlets within the franchise system. Three distinct types of multi unit franchising have been categorised by researchers, namely, master franchising (or sub franchising), area development and area representative (sequential multi unit franchising) agreements. This work tries to explain the situation and use of multi unit franchising in the German franchise sector which is quite young compared to the U.S. market.
Premises to explain the use of this ownership strategy are based on agency theory and transaction cost theory. The hypotheses formulated suggest that behavioural uncertainty through the franchisee, because of shirking and free riding, should have a positive relationship with the tendency to the use of multi unit franchising. A likewise positive relationship should be established due to specific investments by the franchisee at start of the contract. However, environmental uncertainty, because of rapid changing markets, should reduce the tendency to the use of multi unit franchising.
The study revealed that franchisors did not see a strong relationship between the use of multi unit franchising and its efficiency in mitigating moral hazard. The findings corroborated outcomes of prior transaction cost theory research with regard to the positive influence of asset specific investments as an ex post bonding mechanism. Environmental uncertainty was strongly supported by the data but in having a negative relationship with the implementation of multi unit franchising as ownership strategy. Mixed support of the hypotheses was obtained.
Limitations of the study, like the use of cross-sectional data and not paying attention to different types of multi unit franchising, make it necessary to further explore this research question to get a better understanding of franchising in Germany and its application to different requirements.
Abstract
(Englisch)
Since the 1980s major importance in the growth of franchising systems can be attributed to the advent of a new governance form due to multi unit franchising. In a multi unit agreement a franchisee is permitted the right to establish a mini chain of outlets within the franchise system. Three distinct types of multi unit franchising have been categorised by researchers, namely, master franchising (or sub franchising), area development and area representative (sequential multi unit franchising) agreements. This work tries to explain the situation and use of multi unit franchising in the German franchise sector which is quite young compared to the U.S. market.
Premises to explain the use of this ownership strategy are based on agency theory and transaction cost theory. The hypotheses formulated suggest that behavioural uncertainty through the franchisee, because of shirking and free riding, should have a positive relationship with the tendency to the use of multi unit franchising. A likewise positive relationship should be established due to specific investments by the franchisee at start of the contract. However, environmental uncertainty, because of rapid changing markets, should reduce the tendency to the use of multi unit franchising.
The study revealed that franchisors did not see a strong relationship between the use of multi unit franchising and its efficiency in mitigating moral hazard. The findings corroborated outcomes of prior transaction cost theory research with regard to the positive influence of asset specific investments as an ex post bonding mechanism. Environmental uncertainty was strongly supported by the data but in having a negative relationship with the implementation of multi unit franchising as ownership strategy. Mixed support of the hypotheses was obtained.
Limitations of the study, like the use of cross-sectional data and not paying attention to different types of multi unit franchising, make it necessary to further explore this research question to get a better understanding of franchising in Germany and its application to different requirements.
Schlagwörter
Schlagwörter
(Englisch)
Franchising Multi Unit Franchising Agency Theory Transaction Costs Theory
Schlagwörter
(Deutsch)
Franchising Multi Unit Franchising Agency Theorie Transaktionskosten Theorie
Autor*innen
Lindia-Maria Moritz
Haupttitel (Englisch)
Single unit franchising versus multi unit franchising
Hauptuntertitel (Englisch)
agency theory and transaction cost theory based explanations
Paralleltitel (Deutsch)
Single Unit Franchising im Vergleich zu Multi Unit Franchising ; basierend auf Agency Theorie und Transaktionskosten Theorie Aspekten
Publikationsjahr
2011
Umfangsangabe
IV, 54 S.
Sprache
Englisch
Beurteiler*in
Josef Windsperger
Klassifikation
85 Betriebswirtschaft > 85.06 Unternehmensführung
AC Nummer
AC08814958
Utheses ID
13867
Studienkennzahl
UA | 157 | | |