Performance in distribution systems : What is the influence of the upstream firm's organizational choices ?
This paper studies the performance of distribution networks as the result of a range of organizational choices made by the upstream firm. The analytical part of the paper surveys the vast literature devoted to franchising and to dual distribution. From this framework, several testable propositions are derived, linking the networks performance to the organizational choices. Three complementary criteria of performance are taken into account : the internationalization rate, the expansion rate, the market share. The paper provides evidence that these criteria are empirically related. Thus, a system of simultaneous equations is defined, free of endogeneity relating to the explanatory variables. The estimations on recent French data by means of the three-least squares method provide robust results, and show that the type of distribution network, the number of company-owned units in the network, the type of sector, and the choice to manage several networks simultaneously affect the performance in distribution systems.
|Date of creation:||03 Sep 2012|
|Date of revision:|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00727382|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
References listed on IDEAS
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.:
- Thierry Pénard & Emmanuel Raynaud & Stéphane Saussier, 2011.
"Monitoring policy and organizational forms in franchised chains,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Thierry Pénard & Emmanuel Raynaud & Stéphane Saussier, 2011. "Monitoring Policy and Organizational Forms in Franchised Chains," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 18(3), pages 399-417, November.
- Brickley, James A, 1999. "Incentive Conflicts and Contractual Restraints: Evidence from Franchising," Journal of Law and Economics, University of Chicago Press, vol. 42(2), pages 745-74, October.
- Arrunada, Benito & Garicano, Luis & Vazquez, Luis, 2001.
"Contractual Allocation of Decision Rights and Incentives: The Case of Automobile Distribution,"
Journal of Law, Economics and Organization,
Oxford University Press, vol. 17(1), pages 257-84, April.
- Benito Arruñada & Luis Garicano & Luis Vázquez, 1999. "Contractual allocation of decision rights and incentives: The case of automobile distribution," Economics Working Papers 424, Department of Economics and Business, Universitat Pompeu Fabra.
- Shane, Scott A., 1996. "Why franchise companies expand overseas," Journal of Business Venturing, Elsevier, vol. 11(2), pages 73-88, March.
- R. Kosova & F. Lafontaine & Rozenn Perrigot, 2008.
"Organizational Form and Performance: Evidence from the Hotel Industry,"
- 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.
- Renata Kosova & Francine Lafontaine & Rozenn Perrigot, 2013. "Organizational Form and Performance: Evidence from the Hotel Industry," Post-Print halshs-00903514, HAL.
- Kashyap, Vishal & Sivadas, Eugene, 2012. "An exploratory examination of shared values in channel relationships," Journal of Business Research, Elsevier, vol. 65(5), pages 586-593.
- Combs, James G. & Ketchen, David Jr. & Hoover, Vera L., 2004. "A strategic groups approach to the franchising-performance relationship," Journal of Business Venturing, Elsevier, vol. 19(6), pages 877-897, November.
- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, March.
- Rajiv Lal, 1990. "Improving Channel Coordination Through Franchising," Marketing Science, INFORMS, vol. 9(4), pages 299-318.
- Federico Ciliberto, 2006. "DOES ORGANIZATIONAL FORM AFFECT INVESTMENT DECISIONS? -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 54(1), pages 63-93, 03.
- Barthélemy, Jérôme, 2011. "Agency and institutional influences on franchising decisions," Journal of Business Venturing, Elsevier, vol. 26(1), pages 93-103, January.
- Mathewson, G Frank & Winter, Ralph A, 1985. "The Economics of Franchise Contracts," Journal of Law and Economics, University of Chicago Press, vol. 28(3), pages 503-26, October.
- Thierry Pénard & E. Raynaud & S. Saussier, 2003. "Dual distribution and royalty rates in franchised chains : an empirical exploration using French data," Post-Print halshs-00069582, HAL.
- Dahlstrom, Robert & Haugland, Sven A. & Nygaard, Arne & Rokkan, Aksel I., 2009. "Governance structures in the hotel industry," Journal of Business Research, Elsevier, vol. 62(8), pages 841-847, August.
- Michael J. Mazzeo, 2004. "Retail Contracting and Organizational Form: Alternatives to Chain Affiliation in the Motel Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(4), pages 599-615, December.
- Lucy F. Ackert & George Athanassakos, 2003. "A Simultaneous Equations Analysis of Analysts' Forecast Bias, Analyst Following, and Institutional Ownership," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30, pages 1017-1042.
- Windsperger, Josef, 2004. "Centralization of franchising networks: evidence from the Austrian franchise sector," Journal of Business Research, Elsevier, vol. 57(12), pages 1361-1369, December.
- Francine Lafontaine, 1992. "Agency Theory and Franchising: Some Empirical Results," RAND Journal of Economics, The RAND Corporation, vol. 23(2), pages 263-283, Summer.
- Luis Vázquez, 2007. "Proportion of Franchised Outlets and Franchise System Performance," The Service Industries Journal, Taylor & Francis Journals, vol. 27(7), pages 907-921, October.
- Luis Vázquez, 2005. "Up-front Franchise Fees and Ongoing Variable Payments as Substitutes: An Agency Perspective," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 26(4), pages 445-460, 06.
- Silke J. Forbes & Mara Lederman, 2010. "Does vertical integration affect firm performance? Evidence from the airline industry," RAND Journal of Economics, RAND Corporation, vol. 41(4), pages 765-790.
- James A. Brickley, 2002. "Royalty Rates and Upfront Fees in Share Contracts: Evidence from Franchising," Journal of Law, Economics and Organization, Oxford University Press, vol. 18(2), pages 511-535, October.
- Benito Arruñada & Luis Vázquez & Giorgio Zanarone, 1999.
"Institutional constraints on organizations: The case of Spanish car dealerships,"
Economics Working Papers
348, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 2007.
- Benito Arruñada & Luis Vázquez & Giorgio Zanarone, 2009. "Institutional constraints on organizations: the case of Spanish car dealerships," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(1), pages 15-26.
- Pierre Azoulay & Scott Shane, 2001. "Entrepreneurs, Contracts, and the Failure of Young Firms," Management Science, INFORMS, vol. 47(3), pages 337-358, March.
- Williams, Darrell L., 1999. "Why do entrepreneurs become franchisees? an empirical analysis of organizational choice," Journal of Business Venturing, Elsevier, vol. 14(1), pages 103-124, January.
- Etienne Pfister & Bruno Deffains & Myriam Doriat-Duban & Stéphane Saussier, 2006. "Institutions and contracts: Franchising," European Journal of Law and Economics, Springer, vol. 21(1), pages 53-78, January.
- Kidwell, Roland E. & Nygaard, Arne & Silkoset, Ragnhild, 2007. "Antecedents and effects of free riding in the franchisor-franchisee relationship," Journal of Business Venturing, Elsevier, vol. 22(4), pages 522-544, July.
- Magali Chaudey & Muriel Fadairo, 2010. "Contractual design and networks performance: empirical evidence from franchising," Applied Economics, Taylor & Francis Journals, vol. 42(4), pages 529-533.
When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:halshs-00727382. 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: (CCSD)
If references are entirely missing, you can add them using this form.