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Plural Form and Franchise Chains Efficency: A Dea Meta-Frontier Approach applied to French Chains

Author

Listed:
  • Rozenn Perrigot,

    (Graduate School of Management (IGR-IAE), University of Rennes 1 & ESC Rennes School of Business - CREM-CNRS UMR 6211, France)

  • Isabelle Piot-Lepetit

    (INRA UMR 1110 MOÏSA, France)

  • Gérard Cliquet

    (Graduate School of Management (IGR-IAE), University of Rennes 1 - CREM-CNRS UMR 6211, France)

Abstract

This paper deals with the performance of franchise chains related to their percentage of company-owned outlets (PCO). This research uses a Data Envelopment Analysis (DEA) to assess franchise chains’ efficiency, and a meta-frontier approach to analyze chains’ efficiency between and across sectors. The sample includes 43 chains of the service and retail sectors, located in the French market. Data are available over the 2005-2007 period allowing a longitudinal analysis. The main findings show that the meta-frontier is built up on retail chains rather than on service chains, and that there is a relationship between the PCO and the chain efficiency. Finally, there is no significant difference between the observed PCOs and the optimal PCOs which means that franchisors in our sample have already reached a PCO that is close to the PCO that optimizes the chain efficiency.Creation-Date: 2012-02

Suggested Citation

  • Rozenn Perrigot, & Isabelle Piot-Lepetit & Gérard Cliquet, 2012. "Plural Form and Franchise Chains Efficency: A Dea Meta-Frontier Approach applied to French Chains," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201210, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    • Handle: RePEc:tut:cremwp:201210
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    References listed on IDEAS

    as
    1. Rodolphe Durand & Olga Bruyaka & Vincent Mangematin, 2008. "Do science and money go together? The case of the French biotech industry," Strategic Management Journal, Wiley Blackwell, vol. 29(12), pages 1281-1299, December.
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    4. Assâad El Akremi & Mignonac Karim.Mignonac@ut-Capitole.Fr Karim & Rozenn Perrigot, 2011. "Opportunistic behaviors in franchise chains: the role of cohesion among franchisees," Post-Print halshs-00738124, HAL.
    5. Rodolphe Durand & Olga Bruyaka & Vincent Mangematin, 2008. "Do Science and Money Go Together? The Case of the French Biotech Industry," Post-Print hal-00422650, HAL.
    6. Renáta Kosová & Francine Lafontaine & Rozenn Perrigot, 2013. "Organizational Form and Performance: Evidence from the Hotel Industry," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1303-1323, October.
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    9. Botti, Laurent & Briec, Walter & Cliquet, Gérard, 2009. "Plural forms versus franchise and company-owned systems: A DEA approach of hotel chain performance," Omega, Elsevier, vol. 37(3), pages 566-578, June.
    10. Perrigot, Rozenn & Cliquet, Gérard & Piot-Lepetit, Isabelle, 2009. "Plural form chain and efficiency: Insights from the French hotel chains and the DEA methodology," European Management Journal, Elsevier, vol. 27(4), pages 268-280, August.
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