This study applies agglomeration theory to multiunit chains that co- locate corporate and franchised units. We analyze how the performance of a corporate unit is influenced by co-located same-chain units, distinguishing the effects by ownership structure. We argue that corporate ownership and franchising entail different managerial incentives and routine structures that influence the nature of within-chain competition. We predict that a corporate unit’s performance is decreased by co-located corporate sisters but increased by co-located franchised cousins. We support our predictions using data from the hospitality industry. We contribute to the agglomeration and franchising literatures and extend research on managing multiunit chains.
Mulotte, L., & Parmigiani, A. (2017). Sibling rivalry vs. cousin solidarity: How ownership influences performance in franchise chains. In Proceedings of the 77th Annual Meeting of the Academy of Management  Academy of Management. https://doi.org/10.5465/AMBPP.2017.52