New Firm Survival: Institutional Explanations for New Franchisor Mortality
AbstractWhy do some new firms succeed and others fail? Economists argue that new firms fail because entrepreneurs inefficiently manage production and organizational design (Williamson 1985). Sociologists (e.g., Granovetter 1985) have typically viewed this explanation as undersocialized, and argue that institutional legitimacy must also be considered to explain the survival of new firms. This paper examines the survival of 1292 new franchisors established in the United States from 1979--1996. The results show that institutional legitimacy adds to economic explanations for the survival of new franchisors and suggests the importance of a properly socialized explanation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 45 (1999)
Issue (Month): 2 (February)
franchising; firm survival; institutional theory;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Barthélemy, Jérôme, 2011. "Agency and institutional influences on franchising decisions," Journal of Business Venturing, Elsevier, vol. 26(1), pages 93-103, January.
- Monika Hamori, 2006.
"Are franchises bad employers?,"
Working Papers Economia
wp06-11, Instituto de Empresa, Area of Economic Environment.
- repec:ipg:wpaper:39 is not listed on IDEAS
- Odile Chanut & Nadjoua Gharbi & Dominique Bonet Fernandez & E. Hachemi Aliouche, 2013. "Institutional Environments and the Internationalization of Franchise Chains - The Contrasting Cases of Three North African Countries," Working Papers 2013-039, Department of Research, Ipag Business School.
- Pe'er, Aviad & Keil, Thomas, 2013. "Are all startups affected similarly by clusters? Agglomeration, competition, firm heterogeneity, and survival," Journal of Business Venturing, Elsevier, vol. 28(3), pages 354-372.
- Franziska Stelzer, 2008. "Legitimierungsstrategien junger Unternehmen - Ergebnisse einer experimentellen Studie," Schumpeter Discussion Papers sdp08006, Universitätsbibliothek Wuppertal, University Library.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If references are entirely missing, you can add them using this form.