Franchising, ownership, and experience: A study of pizza restaurant survival

• 成果类型: Article
• 署名作者: Kalnins, A; Mayer, KJ
• 署名单位: University of Southern California
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.1040.0220
• 发表日期: 2004
• 页码: 1716-1728
• 关键词: franchising; chain organizations; Knowledge transfer; multiunit ownership; survival

摘要

We hypothesize that retail and service business units will enjoy reduced failure rates if affiliated with experienced multiunit owners and franchisors. Experience of individual owners and franchisees should result in knowledge that is tacit-and idiosyncratic and thus primarily of value locally Because franchisors typically codify knowledge gained from experience, we argue that units should benefit from both local and distant experience of their franchisor. Using Texan pizza restaurant failure data, we found that the units of all multiunit owners, franchised or not, benefited from their owner's local congenital experience, but not from distantly gained experience. Further, the franchisor's local experience reduced failure rates. Contrary to one hypothesis, franchisors' distant experience did not prove beneficial. In addition, a complementary effect was found for owner and franchisor congenital experience. These results highlight the continued importance of local experience, even among the most codified and standardized business organizations.