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Do retailers benefit from network affiliation in all locations

Author

Listed:
  • Magali Chaudey

    (Univ Lyon, UJM Saint-Etienne, GATE UMR 5824)

  • Muriel Fadairo

    (Université Savoie Mont-Blanc – Irege Lab.)

  • Frédéric Perdreau

    (Univ Lyon, UJM Saint-Etienne, COACTIS EA 4161)

Abstract

When a retailer enters a new market, the location and the decision whether to join a branded network are two major choices that must be faced. This empirical paper concerns the performance outcome of these choices. Based on French data, we measure the outlet performance with respect to turnover growth and economic return. Our analytical framework and our results highlight that network membership does not systematically provide advantages at the outlet level. The advantages of network membership decrease with increasing distance from the locus of economic activity.

Suggested Citation

  • Magali Chaudey & Muriel Fadairo & Frédéric Perdreau, 2020. "Do retailers benefit from network affiliation in all locations," Economics Bulletin, AccessEcon, vol. 40(2), pages 1623-1633.
    • Handle: RePEc:ebl:ecbull:eb-19-00865
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Performance; Location; Affiliated retailer; Independent retailer;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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