Library

eCommons

 

Franchising, Ownership, and Experience: A Study of Pizza Restaurant Survival

Simple item page
dc.contributor.authorKalnins, Arturs
dc.contributor.authorMayer, Kyle J.
dc.date.accessioned2020-09-12T21:09:53Z
dc.date.available2020-09-12T21:09:53Z
dc.date.issued2004-12-01
dc.description.abstractWe 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.
dc.description.legacydownloadsKalnins10_Franchising__Ownership__and_Experience.pdf: 1356 downloads, before Aug. 1, 2020.
dc.identifier.other5449917
dc.identifier.urihttps://hdl.handle.net/1813/72213
dc.language.isoen_US
dc.rightsRequired Publisher Statement: © INFORMS. Reprinted with permission. All rights reserved.
dc.subjectfranchising
dc.subjectchain organizations
dc.subjectknowledge transfer
dc.subjectmultiunit ownership
dc.subjectsurvival
dc.titleFranchising, Ownership, and Experience: A Study of Pizza Restaurant Survival
dc.typearticle
local.authorAffiliationKalnins, Arturs: atk23@cornell.edu Cornell University
local.authorAffiliationMayer, Kyle J.: University of Southern California

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Kalnins10_Franchising__Ownership__and_Experience.pdf
Size:
141.4 KB
Format:
Adobe Portable Document Format
Download

Collections

SHA Articles and Chapters