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The findings also show that franchise systems with misaligned passive ownership restrictions show a higher rate of franchisee failure than their better-aligned counterparts.
Findings – The qualitative findings reveal a predominantly calculative attitude towards the franchise relationship.
Drawing upon alliance capabilities research, we describe franchise management capabilities and suggest that they are one way franchisors reduce free-riding and thus enhance performance.
Using a sample of 229 franchisors, we show that franchise management capabilities relate positively to franchisor performance among plural form franchisors.
Tests of the hypotheses derived from these theoretical Frameworks indicate that these complementarily explain the governance structure and financial performance of franchise networks.
High-value firms will be those that can develop and/or sustain a sales-driven franchise with premium pricing across a range of product markets.
The results of this study, based on the motion picture franchise data, indicate that there are critical product core attributes such as continuity, timing, and prior perception that collectively lead to successful successive generations.
The results support the predictions of both theories for control strategies in franchise chains, and so it appears that the agency and organizational views are complementary in the field studied.
We translate the matrix concept for designers and managers who are considering a matrix organization and argue that three factors are critical for its success: (1) Strong purpose: Only choose the matrix structure if there are strong reasons for doing so, (2) Alignment among contingencies: A matrix can only be successful if key contingencies are aligned with the matrix’s purpose, and (3) Management of junctions: The success of a matrix depends on how well activities at the junctions of the matrix are managed.