Franchising in the US remodelling market: growth opportunities and barriers faced by general contractors
Residential remodelling contractors operate in a highly fragmented, disaggregated market. Competition and consolidation arise from other market actors, thus remodellers have diminished bargaining power and higher market risk since they traditionally service geographically specific markets. Franchising theories may provide a competitive business strategy to parallel consolidation in other actors. Yet a small population of remodelling franchises are listed in the US. The vast majority of these franchises were in specialty trades and only one general contracting franchise was represented. This raises the question as to what extent there are barriers to franchising in practice for general contractors in the US remodelling industry and whether opportunities exist for growth through franchising. First, economic theories of franchising are evaluated against secondary quantitative data and extant literature. Second, interviews were conducted among non-franchising, general remodellers. Two principal findings emerge. Human capital requirements are found to be a primary barrier to franchising. A second finding is the perceptual barrier among key decision-makers in founder-controlled firms. Therefore, the barriers are largely perceptual. The finding is reflected upon by introducing upper-echelon theory and ultimately suggests that as the profiles of company owners change, the perceptual barrier to franchising may be of lesser significance.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 29 (2011)
Issue (Month): 6 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RCME20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RCME20|
When requesting a correction, please mention this item's handle: RePEc:taf:conmgt:v:29:y:2011:i:6:p:623-634. See general 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: (Michael McNulty)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.