Factors Influencing the Adoption of Plural Forms of Distribution in Vertically Contracted Marketing Networks

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Title Factors Influencing the Adoption of Plural Forms of Distribution in Vertically Contracted Marketing Networks
Author Weaven, Scott Keith W; Sweeney, Arthur
Publication Title 18th Annual conference of the Australian and New Zealand Academy of Management ANZCAM 2004
Editor Graham Elkin
Year Published 2004
Place of publication Dunedin, New Zealand
Publisher University of Otago
Abstract The body of franchising research that deals with the choice of organisational form examines the motivational incentives that influence entrepreneurs to choose franchising expansion rather than expansion through company owned units. Although, many past conceptual, exploratory and explanatory studies advocate the benefits of hybrid organisational arrangements, in practice, few firms pursue a pure franchising strategy. While this may be partially explained by studies linking plural or chain organisations (simultaneous use of franchised and company owned units) with the promotion of standardisation and system-wide adaptability to competition, it contrasts with recent research showing that franchising strategies are an optimal method of maximising system performance. Given this apparent disparity in the literature, together with what is observed in practice, further investigation into the reasons why franchisors encourage the growth of plural governance structures is warranted. This research aims to build theory through the presentation of a set of general propositions explaining the choice of plural governance structures as a function of local market innovation, organisational learning and system-level adaptation, the maintenance of operational standards through mutual benchmarking and the provision of experienced prospective franchisees, necessary for future system growth. Overall, the qualitative findings drawn from a sample of franchisors within the retail and services industries clarified and confirmed the appropriateness of the general propositions in preparation for quantitative testing in the near future.
Peer Reviewed Yes
Published Yes
Publisher URI http://www.business.otago.ac.nz/mgmt/ANZAM2004/
Alternative URI http://www.business.otago.ac.nz/mgmt/ANZAM2004/CD/Papers/ABSTRACT199%20REVISED%2024-09-2004.htm
ISBN 0-476-01131-0
Conference name ANZAM 2004
Location Dunedin, New Zealand
Date From 2004-12-08
Date To 2004-12-11
URI http://hdl.handle.net/10072/2318
Date Accessioned 2005-02-24
Language en_AU
Research Centre Griffith Institute For Tourism
Faculty Griffith Business School
Subject PRE2009-Marketing and Market Research
Publication Type Conference Publications (Full Written Paper - Refereed)
Publication Type Code e1

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