Organizational Design and Control across Multiple Markets: The Case of Franchising in the Convenience Store Industry

• 成果类型: Article
• 署名作者: Campbell, Dennis; Datar, Srikant M.; Sandino, Tatiana
• 署名单位: Harvard University; University of Southern California
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr.2009.84.6.1749
• 发表日期: 2009
• 页码: 1749-1779
• 关键词: demographic-variables; Shopping behavior; Agency theory; OWNERSHIP; determinants; systems; service; models; CHOICE; RISK

摘要

Many companies operate units that are dispersed across different types of markets, serving significantly divergent customer bases. Such dispersion is likely to compromise headquarters' ability to control local managers' behavior and satisfy the needs of different customer types. In this study we find that market-type dispersion is an important determinant of the delegation of decision rights and the provision of incentives. Using a sample of convenience store chains, we show that market-type dispersion is positively associated with the degree of franchising at the chain level as well as the probability of franchising a given store within a chain. Our results are robust to alternative definitions of market-type dispersion and to other determinants of franchising such as the stores' geographic dispersion. Additional analyses suggest that chains that do not franchise cope with market-type dispersion by decentralizing operations from headquarters to their stores and providing their store managers higher variable pay.