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D. Hussain, M. Sreckovic, J. Windsperger:
"An organizational capability perspective on multi-unit franchising: Evidence from Germany and Switzerland";
Small Business Economics, 50 (2017), 4; 717 - 727.

Previous research on multi-unit franchising
(MUF) has primarily focused on agency and
transaction cost perspectives. The present study develops
and tests an organizational capability (OC) model
of the franchisor´s choice of MUF. According to the
OC view, the franchisor gains a competitive advantage
by exploration and exploitation of firm-specific resources
and capabilities. We hypothesize that, if the
franchisor expects to obtain a competitive advantage
resulting from higher exploration and exploitation capabilities
when using MUF as opposed to single-unit
franchising, the franchisor will more likely choose
MUF as a governance mode of the franchise system.
Based on empirical data from the German and Swiss
franchise sectors, the results of the regression analysis
support these hypotheses. Our main contribution to the
franchise literature is the development of an OC model
of the franchisor´s choice ofMUF that complements the
existing organizational economics explanation of MUF.

Multi-unit franchising . Organizational capabilities . Exploration capabilities . Exploitation capabilities . Transaction costs

http://dx.doi.org/10.1007/s11187-017-9891-5