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Determinantes de la intensidad franquiciadora: un enfoque de agencia

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Abstract

This article studies, from an agency perspective, the factors that explain the franchisor decision to integrate versus franchise its outlets. The analysis of a sample of Spanish franchise networks shows that franchising is more likely when: a) the costs of inefficient risk allocation between agent and principal are low, b) agent effort is a key success factor, and c) it is difficult to control the opportunistic behaviour of the agent. Furthermore, the importance of franchisor effort seems to affect negatively to the percentage of franchised outlets.

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File URL: ftp://ftp.fundacionsepi.es/InvEcon/paperArchive/January2003/v27i1a6.pdf
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Bibliographic Info

Article provided by Fundación SEPI in its journal Investigaciones Economicas.

Volume (Year): 27 (2003)
Issue (Month): 1 (January)
Pages: 151-172

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Handle: RePEc:iec:inveco:v:27:y:2003:i:1:p:151-172

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Postal: Investigaciones Economicas Fundación SEPI Quintana, 2 (planta 3) 28008 Madrid Spain
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Related research

Keywords: Franchising; vertical integration; distribution; agency theory;

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Cited by:
  1. Gonzalez-Diaz, Manuel & Solis-Rodriguez, Vanesa, 2012. "Why do entrepreneurs use franchising as a financial tool? An agency explanation," Journal of Business Venturing, Elsevier, vol. 27(3), pages 325-341.

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