Journal ArticleDOI
A Strategic Deviance Perspective on the Franchise Form of Organizing
Roland E. Kidwell,Arne Nygaard +1 more
TLDR
In this paper, the authors propose that the concept of strategic deviance suggests why franchisors accept deviant behavior resulting from vertical and horizontal agency problems in multi-agent contracts, and address opportunistic behaviors by company managers and franchisees through self-enforced social control and social comparison mechanisms.Abstract:
Drawing on various theoretical perspectives, we propose that franchisors cannot assess and control opportunism absent comparative information provided by owning and operating some of their outlets and by franchising others. Moving beyond dyadic perspectives, we propose that the concept of strategic deviance suggests why franchisors accept deviant behavior resulting from vertical and horizontal agency problems in multiagent contracts. A plural form provides efficiency and quality benchmark information that curbs even greater levels of shirking and free-riding behaviors and enhances system performance. Opportunistic behaviors by company managers and franchisees are addressed through self-enforced social control and social comparison mechanisms.read more
Citations
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Journal ArticleDOI
Tournament Theory Thirty Years of Contests and Competitions
TL;DR: Tournament theory is useful for describing behavior when reward structures are based on relative rank rather than absolute levels of output as discussed by the authors, and management scholars have used tournament theory to describe a wide range of inter-and intraorganizational competitions, such as promotion contests, innovation contests, and competition among franchisees.
Journal ArticleDOI
Franchising Research Frontiers for the Twenty-First Century
TL;DR: In this article, the authors discuss some of the unique features of the franchising context that presumably inspired these pioneering authors, discuss four established elements of ontology unique to franchising and isolate the remaining research gaps therein, and specify a new slate of more contemporary research agenda for future scholarship.
Journal ArticleDOI
Franchising Research: Major Milestones, New Directions, and its Future within Entrepreneurship:
TL;DR: For decades, most franchising research leveraged one of three theoretical milestones (resource scarcity, agency theory, and plural form symbiosis) to answer questions about why, where, and how often...
Journal ArticleDOI
Using Resource‐Based Theory to Help Explain Plural Form Franchising
TL;DR: In this article, the authors introduce a resource-based explanation for the proportion of franchised revenue that is influenced by efforts to organize franchisor-owned and relational strategic assets so that their value can be best leveraged to meet key strategic goals.
Journal ArticleDOI
Franchise management capabilities and franchisor performance under alternative franchise ownership strategies
TL;DR: In this paper, the authors describe franchise management capabilities and suggest that they are one way franchisors reduce free-riding and thus enhance performance, and they also suggest that these capabilities are especially helpful for “plural form” franchisor who own outlets in parallel with franchisees.
References
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Journal ArticleDOI
The Market for “Lemons”: Quality Uncertainty and the Market Mechanism
TL;DR: In this paper, the authors present a struggling attempt to give structure to the statement: "Business in under-developed countries is difficult"; in particular, a structure is given for determining the economic costs of dishonesty.
Journal ArticleDOI
A Theory of Social Comparison Processes
TL;DR: In this article, the authors pointed out that there is a strong functional tie between opinions and abilities in humans and that the ability evaluation of an individual can be expressed as a comparison of the performance of a particular ability with other abilities.
Book
The External Control of Organizations: A Resource Dependence Perspective
TL;DR: The External Control of Organizations as discussed by the authors explores how external constraints affect organizations and provides insights for designing and managing organizations to mitigate these constraints, and it is the fact of the organization's dependence on the environment that makes the external constraint and control of organizational behavior both possible and almost inevitable.
Journal ArticleDOI
Toward a Knowledge-Based Theory of the Firm
TL;DR: In this paper, the authors explore the coordination mechanisms through which firms integrate the specialist knowledge of their members, which has implications for the basis of organizational capability, the principles of organization design, and the determinants of the horizontal and vertical boundaries of the firm.
Journal ArticleDOI
Agency Theory: An Assessment and Review
TL;DR: In this article, the authors review agency theory, its contributions to organization theory, and the extant empirical work and develop testable propositions and conclude that agency theory offers unique insight into information systems, outcome uncertainty, incentives, and risk.