[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v41y1995i7p1238-1249.html
   My bibliography  Save this article

Control Modes in International Service Operations: The Propensity to Franchise

Author

Listed:
  • Karin Fladmoe-Lindquist

    (David Eccles School of Business, University of Utah, Salt Lake City, Utah 84112)

  • Laurent L. Jacque

    (Fletcher School of Law and Diplomacy, Tufts University, Medford, Massachusetts 02155 and Groupe HEC, 78350 Jouy-en-Josas, France)

Abstract
What determines a service firm's organizational choice between equity-based control and franchising? This question, which has elicited some theoretical answers and a few empirical tests in a domestic setting, has never been addressed in an international context before. This study explains the mode of control chosen in terms of a theoretical framework which borrows from agency theory and transaction cost analysis. The propensity to franchise internationally was found to be directly related to (i) monitoring costs associated with geographical and "cultural" distance between the principal (franchisor) and its foreign agents (franchisees), (ii) the principal's international experience, and (iii) the degree of host countries' contextual uncertainty but inversely related to the service firm level of brand name asset specificity.

Suggested Citation

  • Karin Fladmoe-Lindquist & Laurent L. Jacque, 1995. "Control Modes in International Service Operations: The Propensity to Franchise," Management Science, INFORMS, vol. 41(7), pages 1238-1249, July.
    • Handle: RePEc:inm:ormnsc:v:41:y:1995:i:7:p:1238-1249
    DOI: 10.1287/mnsc.41.7.1238
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.41.7.1238
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.41.7.1238?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:41:y:1995:i:7:p:1238-1249. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.