Preview

Moscow University Economics Bulletin

Advanced search

Power Asymmetry in Franchising

https://doi.org/10.38050/01300105201769

Abstract

The degree of asymmetry of power is one of the key factors affecting the relationship between the franchisor and the franchisee. The development of strategies for building relations should correspond to the legitimacy of the measures taken, as well as the costs of harmonization that arise in connection with a decrease in the adequacy of power relations between the subjects of relations. This article reveals the main factors that determine the legitimacy of power asymmetry, the consequences of not legitimate requirements described, as well as the costs of choosing different strategies on the part of the franchisor. The purpose of this article is to prove the inevitability of the emergence of power asymmetry in the relationship between the franchisor and the franchisee, as well as a theoretical description of the influence of asymmetry on their relationships. The results of the article can be used by franchisors in formulating strategies for building relationships with franchisees.

About the Authors

M. S. Shakhova
Moscow state University named after M. V. Lomonosov
Russian Federation


A. G. Mirzoyan
Moscow state University named after M. V. Lomonosov
Russian Federation


References

1. Ashgarian E. Entrepreneurial process in franchised outlets // Journal of WEI Business and Economics. - 2013.

2. Bradach J. L., Using the Plural Form in the Management of Restaurant Chains // Administrative Science Quarterly. - 1997.

3. Cumberland D., Githens R., Tacit knowledge barriers in franchising: practical solutions // Journal of Workplace Learning. - 2012. - Vol. 24. - No. 1. - P. 48-58.

4. Felstead A. The Corporate Paradox. - L.: Rutledge, 1993.

5. Jambulingam T., Nevin J. Influence of Franchisee Selection Criteria on Outcomes Desired by the Franchisor // Journal of Business Venturing. -1999.

6. Kalnins A., Lafontaine F. Multi-unit ownership in franchising: Evidence from the fast-food industry in Texas // Journal of Economics. - 2004.

7. Mathewson F. G., Winter R. A. The Economics of Franchise Contracts // Journal of Law and Economics. - 1985.

8. Robicheaux R. A., Dant R., and Kaufmann P. J. Multiple unit Franchising in the Fast Food Industry in the United States: Incidence and Operating Characteristics // Proceedings of the Eighth Conference of the Society of Franchising, Understanding and Accepting Different Perspectives.. Empowering Relationships in 1994 and Beyond, 1994.

9. Sorenson O., Sorensen J. B. Finding the right mix: franchising, organizational learning, and chain performance // Strategic Management Journal. - 2001.

10. Weaven S. Factors Influencing the Decision to Adopt Multiple Unit Franchising Arrangements // Unpublished doctoral dissertation, Griffith University, 2004.

11. Weaven S. Intrapreneurial Behaviour Within the Franchising Context, Marketing Accountabilities and Responsibilities // Conference Proceedings of ANZMAC, 2004.


Review

For citations:


Shakhova M.S., Mirzoyan A.G. Power Asymmetry in Franchising. Moscow University Economics Bulletin. 2017;(6):168-182. (In Russ.) https://doi.org/10.38050/01300105201769

Views: 324


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.


ISSN 0130-0105 (Print)