Sibling rivalry vs. cousin solidarity: How ownership influences performance in franchise chains

Louis Mulotte, A. Parmigiani

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

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 languageEnglish
Title of host publicationProceedings of the 77th Annual Meeting of the Academy of Management
PublisherAcademy of Management
DOIs
Publication statusPublished - Jan 2017

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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 [13412] Academy of Management. https://doi.org/10.5465/AMBPP.2017.52