Organizational choices and financial performance: the case of company-owned stores, franchisee-owned stores and stores-within-a-store among French fashion retailers
This paper deals with the governance and financial performance issues in the context of French Fashion retail companies. In this study, we analyze the influence of the organizational choices on the financial performance at the network level. We consider three forms used in isolation (company-owned stores, franchisee-owned stores and stores-within-a-store), three dually-organized forms (dual forms mixing two of the three forms) as well as a combined form associating the three ones. We study a sample of mostly privately-held French retail companies from the fashion sector (n= 170), using two criteria of performance - profit margin ratio and return on assets. The results show that none of the purely or dual forms tends to generate better financial performance than any other, even though descriptive statistics exhibit important differences in terms of performance among organizational forms. The results highlight that networks combining company-ownership, franchising and stores-within-a-store generate better financial performance, up to a certain point.
|Date of creation:||Nov 2013|
|Date of revision:|
|Contact details of provider:|| Postal: CREM (UMR CNRS 6211) – Faculty of Economics, 7 place Hoche, 35065 RENNES Cedex|
Phone: 02 23 23 35 47
Fax: (33) 2 23 23 35 99
Web page: http://crem.univ-rennes1.fr/
More information through EDIRC
|Order Information:|| Postal: CREM (UMR CNRS 6211) - Faculty of Economics, 7 place Hoche, 35065 Rennes Cedex - France|
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.:
- 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.
- R. Kosova & F. Lafontaine & Rozenn Perrigot, 2008. "Organizational Form and Performance: Evidence from the Hotel Industry," Post-Print halshs-00422334, HAL.
- 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.
- Frédéric Perdreau & Anne-Laure Le Nadant & Gérard Cliquet, 2010. "Plural Form and Franchisors Performance : Early Empirical Findings From Europe," Post-Print halshs-00522601, HAL.
- Francine Lafontaine & Kathryn L. Shaw, 2001.
"Targeting Managerial Control: Evidence from Franchising,"
NBER Working Papers
8416, National Bureau of Economic Research, Inc.
- Francine Lafontaine & Kathryn L. Shaw, 2005. "Targeting Managerial Control: Evidence from Franchising," RAND Journal of Economics, The RAND Corporation, vol. 36(1), pages 131-150, Spring.
- Paul Amadieu & Karine Picot-Coupey & Jean-Laurent Viviani, 2013. "Financial performance of store-within-store strategy in the french fashion industry," Post-Print halshs-00880648, HAL.
- Paul Amadieu & Karine Picot-Coupey & Jean-Laurent Viviani, 2013. "Shops-within-shops : determinants of the choice and impact on retail company financial performance," Post-Print halshs-00843149, HAL.
- Magali Chaudey & Muriel Fadairo & Gwennaël Solard, 2013. "Network Integration Through Franchised and Company‐Owned Chains: Evidence from French Distribution Networks," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 34(3-5), pages 195-203, 04.
- 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.
- Noel Capon & John U. Farley & Scott Hoenig, 1990. "Determinants of Financial Performance: A Meta-Analysis," Management Science, INFORMS, vol. 36(10), pages 1143-1159, October.
When requesting a correction, please mention this item's handle: RePEc:tut:cremwp:201335. 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: (CODA-POIREY Hélène)
If references are entirely missing, you can add them using this form.