Growing through copying: The negative consequences of innovation on franchise network growth
We explore how more exactly copying a blueprint for establishing a franchise network in a new country influences franchising network growth. We test opposing hypotheses using panel data involving the transfer of franchising knowledge to 23 different countries, measuring the degree to which master licensees 'copy exactly' knowledge concerning how to grow a network in their country and the effect that their approach has on subsequent network growth. We conclude that a strategy of copying more exactly seems to enhance growth and that the benefits of more exactly replicating knowledge in the 1st year of a local network's existence persist for several years. Thus, innovation, in this specific context, seems to hinder firm growth.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Arturs Kalnins & Kyle J. Mayer, 2004. "Franchising, Ownership, and Experience: A Study of Pizza Restaurant Survival," Management Science, INFORMS, vol. 50(12), pages 1716-1728, December.
- Brickley, James A. & Dark, Frederick H., 1987. "The choice of organizational form The case of franchising," Journal of Financial Economics, Elsevier, vol. 18(2), pages 401-420, June.
- Anne Marie Knott, 2001. "The Dynamic Value of Hierarchy," Management Science, INFORMS, vol. 47(3), pages 430-448, March.
- John M Hannon & Ing-Chung Huang & Bihi-Shiaw Jaw, 1995. "International Human Resource Strategy and Its Determinants: The Case of Subsidiaries in Taiwan," Journal of International Business Studies, Palgrave Macmillan, vol. 26(3), pages 531-554, September.
- Kaufmann, Patrick J. & Eroglu, Sevgin, 1999. "Standardization and adaptation in business format franchising," Journal of Business Venturing, Elsevier, vol. 14(1), pages 69-85, January.
- Leonard-Barton, Dorothy, 1988. "Implementation as mutual adaptation of technology and organization," Research Policy, Elsevier, vol. 17(5), pages 251-267, October.
- Jan W. Rivkin, 2000. "Imitation of Complex Strategies," Management Science, INFORMS, vol. 46(6), pages 824-844, June.
- Ron Adner & Daniel Levinthal, 2001. "Demand Heterogeneity and Technology Evolution: Implications for Product and Process Innovation," Management Science, INFORMS, vol. 47(5), pages 611-628, May.
- S.A. Lippman & R.P. Rumelt, 1982. "Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency under Competition," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 418-438, Autumn.
- Gilsing, Victor & Nooteboom, Bart, 2006. "Exploration and exploitation in innovation systems: The case of pharmaceutical biotechnology," Research Policy, Elsevier, vol. 35(1), pages 1-23, February.
- Del Monte, Alfredo & Papagni, Erasmo, 2003. "R&D and the growth of firms: empirical analysis of a panel of Italian firms," Research Policy, Elsevier, vol. 32(6), pages 1003-1014, June.
- Armen A. Alchian & Harold Demsetz, 1971.
"Production, Information Costs and Economic Organizations,"
UCLA Economics Working Papers
10A, UCLA Department of Economics.
- Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-95, December.
- Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan, vol. 19(3), pages 411-432, September.
- Robert J. Jensen & Gabriel Szulanski, 2007. "Template Use and the Effectiveness of Knowledge Transfer," Management Science, INFORMS, vol. 53(11), pages 1716-1730, November.
- Phillip M Rosenzweig & Nitin Nohria, 1994. "Influences on Human Resource Management Practices in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan, vol. 25(2), pages 229-251, June.
- Piero Morosini & Scott Shane & Harbir Singh, 1998. "National Cultural Distance and Cross-Border Acquisition Performance," Journal of International Business Studies, Palgrave Macmillan, vol. 29(1), pages 137-158, March.
When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:37:y:2008:i:10:p:1732-1741. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.