Abstract
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.
Original language | English |
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Title of host publication | Proceedings of the 77th Annual Meeting of the Academy of Management |
Publisher | Academy of Management |
DOIs | |
Publication status | Published - Jan 2017 |