Open AccessA Preliminary Investigation Of Ownership Conversions In Franchised Distribution Systems
Author(s) -
Chris Manolis,
Robert Dahlstrøm,
Arne Nygaard
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v11i2.5868
Subject(s) - revenue , agency (philosophy) , transaction cost , business , distribution (mathematics) , control (management) , database transaction , quality (philosophy) , industrial organization , channel (broadcasting) , principal–agent problem , microeconomics , economics , accounting , telecommunications , finance , computer science , database , management , mathematics , corporate governance , mathematical analysis , philosophy , epistemology
Franchised business networks consist of corporately management and independently owned channel outlets. This analysis employs transaction cost economics and agency theory to explain net ownership shifts between franchisors and franchisees. Hypotheses are developed and a preliminary test is made using secondary data. The results indicate that net conversions to franchisor ownership are associated with quality control factors, projected growth, and revenues.