Partner Empowerment and Relationship Failure in Franchising
研究了加盟商在哪些具体要素上应被授权决策以减少加盟商提前终止合同,发现授权本地广告和人事决策可减少终止,而定价授权则增加终止,且品牌价值影响其他决策授权的效果。
Franchisors must empower franchisees to take decisions on a package of peripheral elements in response to pressure for local adaptations and for entrepreneurial autonomy. However, little is known about which specific elements should be decentralized and to what extent adaptation of such elements affects disputes between franchisor and franchisees. This study explores these issues by analyzing which decision rights should be franchisees’ responsibility to reduce early terminations instigated by the franchisor. The results show that delegating decision rights on local advertising and personnel reduces early terminations while delegation of pricing tends to increase them, regardless of the size of the system. Interestingly, successful delegation in other decision-areas is contingent on the brand-name value. More specifically, only larger chains seem to benefit from delegating assortment and decoration decisions.