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  • How firm strategies impact size of partner-based retail networks: Evidence from franchising

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    DantPUB412.pdf (483.3Kb)
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    Accepted Manuscript (AM)
    Author(s)
    Kacker, Manish
    Dant, Rajiv
    Emerson, Jamie
    Coughlan, Anne
    Griffith University Author(s)
    Dant, Rajiv P.
    Year published
    2015
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    Abstract
    How do firms' partnering strategies impact the size of their partner‐based retail networks? We draw on agency theory to address this question in the context of franchising. Our econometric analyses (based on 9 years of longitudinal balanced panel data) include assessment of data nonstationarity and estimation of a dynamic panel data model that accounts for unobserved heterogeneity and endogeneity. Our findings indicate that franchisee network size is driven more by franchisor strategies that mitigate agency costs than by strategies that simply lower entry and ongoing costs and barriers for franchisees.How do firms' partnering strategies impact the size of their partner‐based retail networks? We draw on agency theory to address this question in the context of franchising. Our econometric analyses (based on 9 years of longitudinal balanced panel data) include assessment of data nonstationarity and estimation of a dynamic panel data model that accounts for unobserved heterogeneity and endogeneity. Our findings indicate that franchisee network size is driven more by franchisor strategies that mitigate agency costs than by strategies that simply lower entry and ongoing costs and barriers for franchisees.
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    Journal Title
    Journal of Small Business Management
    DOI
    https://doi.org/10.1111/jsbm.12155
    Copyright Statement
    © 2015 International Council for Small Business. This is the peer reviewed version of the following article: How Firm Strategies Impact Size of Partner-Based Retail Networks: Evidence from Franchising, Journal of Small Business Management, Volume 54, Issue 2, 2015, which has been published in final form at https://doi.org/10.1111/jsbm.12155. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving (http://olabout.wiley.com/WileyCDA/Section/id-828039.html)
    Note
    This publication has been entered into Griffith Research Online as an Advanced Online Version.
    Subject
    Marketing not elsewhere classified
    Banking, Finance and Investment
    Business and Management
    Marketing
    Publication URI
    http://hdl.handle.net/10072/101335
    Collection
    • Journal articles

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