The Production Franchise: An Unstable Organizational Choice
AbstractIn this paper some determinants of discrete shifts from production franchise agreements to vertical integration are investigated from a new angle. Production franxhise agreements are considered as an organizational innovation for the diffusion of process and/or product innovations. A common agency model describes production franchising as a contractual device between agent (the production franchisor) ans multiple principals (the production franchisees) that operate on an exclusive segment of a given territory. The boundaries of the franchisenetwork are obtained as a non-cooperative solution. Sufficient conditions are obtained for the profitability of franchising production and or the reduction of the degree of appropriability of innovation benefits by industrial franchisors. This offers a new theoretical explanation for observed business practices.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 9913.
Date of creation: Oct 1999
Date of revision:
Contact details of provider:
Postal: School of Economics and Finance, University of St. Andrews, Fife KY16 9AL
Phone: 01334 462420
Fax: 01334 462438
Web page: http://crieff.wordpress.com/
More information through EDIRC
Franchising; production; innovation; appropriability; common agency;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bram Boskamp).
If references are entirely missing, you can add them using this form.