Cintya Lanchimba

Bio: Cintya Lanchimba is an academic researcher from National Technical University. The author has contributed to research in topics: Emerging markets & Latin Americans. The author has an hindex of 5, co-authored 28 publications receiving 84 citations. Previous affiliations of Cintya Lanchimba include Instituto Politécnico Nacional & Southwest University.

Entrepreneurial orientation, risk and incentives: the case of franchising

Abstract: The standard principal-agent model predicts a trade-off in contract design between the protection against risk and incentive motivations. Distinguishing two types of risks, we show that, contrary to this traditional view, the relationship between risk and incentives can be positive. In franchise contracting, this implies that the royalty rate decreases with the risk faced by the franchisee on the local market. Using a unique panel dataset combining French franchise and financial data, we address this issue empirically, alongside performance outcomes. The data support the hypothesis of a negative relationship between risk and the royalty rate, which contradicts the prediction of the standard agency theory. Furthermore, our estimations provide evidence that chain performance increases with an adjusted royalty rate. This paper has important implications for contract design, showing that with increasing local market uncertainty and low-risk aversion, franchisors should reduce the royalty rate.

Organizational choices and performance in distribution systems

Abstract: This article studies the performance of distribution networks as the result of a range of organizational choices. The analytical part of the article surveys the vast literature devoted to franchising and dual distribution. From this framework, several testable propositions linking network performance to organizational choices are derived. Three complementary criteria of performance are taken into account: the internationalization rate, the expansion rate and the market share. This article provides evidence for the simultaneity between these performance criteria, analytically related as indicators of the network commercial performance. Thus, the econometrical model is defined as a system of simultaneous equations, free of endogeneity regarding the explanatory variables. The estimations on recent French data obtained using the three-stage least squares method provide robust results and show that the type of distribution network, the number of company-owned outlets in the network, the type of sector and the ...

Should I Stay or Should I Go? Geographic Entrepreneurial Choices in Brazilian Franchising*

Abstract: In the broad empirical literature on franchising, performance outcomes of location decisions appear to be a largely forgotten issue. Yet franchising represents a rich context to study the i...

Estimation and Inference in Econometrics

Abstract: Offering a unifying theoretical perspective not readily available in any other text, this innovative guide to econometrics uses simple geometrical arguments to develop students' intuitive understanding of basic and advanced topics, emphasizing throughout the practical applications of modern theory and nonlinear techniques of estimation. One theme of the text is the use of artificial regressions for estimation, reference, and specification testing of nonlinear models, including diagnostic tests for parameter constancy, serial correlation, heteroscedasticity, and other types of mis-specification. Explaining how estimates can be obtained and tests can be carried out, the authors go beyond a mere algebraic description to one that can be easily translated into the commands of a standard econometric software package. Covering an unprecedented range of problems with a consistent emphasis on those that arise in applied work, this accessible and coherent guide to the most vital topics in econometrics today is indispensable for advanced students of econometrics and students of statistics interested in regression and related topics. It will also suit practising econometricians who want to update their skills. Flexibly designed to accommodate a variety of course levels, it offers both complete coverage of the basic material and separate chapters on areas of specialized interest.

The economics of franchising

Abstract: The academic debate about the motivations for franchising and its impact on economic welfare is quite passionate Roughly speaking, on one side markets are asserted to be competitive, so that new business practices can merge only if they improve economic efficiency; businessmen "know their business" better than economists or regulators do, and the best possible regulatory policy is no regulation at all On the other side, it is advised to rule out any kind of arrangement which may restrict one party's freedom of trade - which is the case of practically any provision in a franchise contract The controversy reflects the opposition between different schools of economic thought, but it also hinges on divergences in the appreciation of the context and of the horizon of the analysis

Services vs retail chains: are there any differences ?

Abstract: Purpose – This paper aims to review the differences between retailing and services in the particular context of franchised chains in order to highlight the main differences between retail chains and services chains.Design/methodology/approach – The existence of such differences is tested in the French context because its franchising sector is the most developed one in Europe as far as the number of chains is concerned. The empirical study deals with 530 chains among which 228 are services and 302 are retail.Findings – Some significant differences between services and retail chains are underlined in terms of age, plural form, franchising fees, franchising and advertising royalties, and contract length. Additionally to these significant differences, the new trend in franchising seems to consist in developing more services chains than retail chains.Research limitations/implications – This paper has some limitations. The focus is on only one country: France. A multi‐countries study could be useful to confirm ...

Quality signaling through ex-ante voluntary information disclosure in entrepreneurial networks: evidence from franchising

Abstract: This paper examines antecedents of ex-ante voluntary information disclosures for standardized contracts in entrepreneurial networks. Entrepreneurs (e.g., franchisors) may make such disclosures to prospective business partners in order to signal profitability of partnering, attract financial and managerial resources, and develop their entrepreneurial networks. In practice, only a fraction of franchisors make financial performance representations (FPRs), an ex-ante voluntary information disclosure to prospective franchisees. We address gaps in the signaling, voluntary information disclosure, franchising, entrepreneurship, and small- and medium-enterprise (SME) literatures. We draw on signaling theory to develop a theoretical framework and investigate factors that influence a franchisor’s disclosure decision. We evaluate hypotheses from our theoretical framework through econometric analyses of multi-sector panel data for the US franchising industry. We estimate a logit model and use lagged independent variables to address our dichotomous independent variable and potential endogeneity, respectively. Our results support the view that firms signal their quality through FPRs to attract potential business partners and expand their entrepreneurial networks. Beyond the extant literature, we find that rigorous partner qualification is another driver of voluntary information disclosure in franchising. Our findings also provide empirical support for the complementary role played by multiple quality signaling mechanisms used by franchisors and yield public policy implications for franchising.