IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-19-00865.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2020/Volume40/EB-20-V40-I2-P139.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alex Coad, 2007. "Firm Growth: a Survey," Post-Print halshs-00155762, HAL.
    2. Amel Ben Abdesslem & Raphaël Chiappini, 2019. "Cluster policy and firm performance: a case study of the French optic/photonic industry," Regional Studies, Taylor & Francis Journals, vol. 53(5), pages 692-705, May.
    3. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    4. Geldes, Cristian & Felzensztein, Christian & Turkina, Ekaterina & Durand, Aurélia, 2015. "How does proximity affect interfirm marketing cooperation? A study of an agribusiness cluster," Journal of Business Research, Elsevier, vol. 68(2), pages 263-272.
    5. Françoise Bastié & Pascal Cussy & Anne‐Laure Le Nadant, 2016. "Network or Independent Business? Entrepreneurs' Human, Social and Financial Capital as Determinants of Mode of Entry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 37(3), pages 167-181, April.
    6. Dant, Rajiv P. & Grünhagen, Marko & Windsperger, Josef, 2011. "Franchising Research Frontiers for the Twenty-First Century," Journal of Retailing, Elsevier, vol. 87(3), pages 253-268.
    7. Arturs Kalnins & Kyle J. Mayer, 2004. "Franchising, Ownership, and Experience: A Study of Pizza Restaurant Survival," Management Science, INFORMS, vol. 50(12), pages 1716-1728, December.
    8. Litz, Reginald A. & Stewart, Alice C., 1998. "Franchising for sustainable advantage? Comparing the performance of independent retailers and trade-name franchisees," Journal of Business Venturing, Elsevier, vol. 13(2), pages 131-150, March.
    9. Johan Larsson & Özge Öner, 2014. "Location and co-location in retail: a probabilistic approach using geo-coded data for metropolitan retail markets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 385-408, March.
    10. Frazer, Lorelle & Winzar, Hume, 2005. "Exits and expectations: why disappointed franchisees leave," Journal of Business Research, Elsevier, vol. 58(11), pages 1534-1542, November.
    11. Niels Bosma & Mirjam van Praag & Roy Thurik & Gerrit de Wit, 2004. "The Value of Human and Social Capital Investments for the Business Performance of Startups," Small Business Economics, Springer, vol. 23(3), pages 227-236, October.
    12. Odile Chanut & Nadjoua Gharbi & Dominique Bonet Fernandez & Muhammad Shahbaz & E. Hachemi Aliouche, 2013. "Institutional Environments and the Internationalization of Franchise Chains: The Contrasting Cases of Three North African Countries," Working Papers 2013-39, Department of Research, Ipag Business School.
    13. Alexa A. Perryman & James G. Combs, 2012. "Who should own it? An agency‐based explanation for multi‐outlet ownership and co‐location in plural form franchising," Strategic Management Journal, Wiley Blackwell, vol. 33(4), pages 368-386, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alexander E. Plesovskikh, 2023. "Special Economic Zones of Russia: Forecasting Decisions of Potential Residents and Resident Generation Process Modeling," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 22(2), pages 323-354.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ferretti, Marco & Guerini, Massimiliano & Panetti, Eva & Parmentola, Adele, 2022. "The partner next door? The effect of micro-geographical proximity on intra-cluster inter-organizational relationships," Technovation, Elsevier, vol. 111(C).
    2. Dildar Hussain & Marijana Sreckovic & Josef Windsperger, 2018. "An organizational capability perspective on multi-unit franchising," Small Business Economics, Springer, vol. 50(4), pages 717-727, April.
    3. Dildar Hussain & Josef Windsperger, 2013. "A property rights view of multi-unit franchising," European Journal of Law and Economics, Springer, vol. 35(2), pages 169-185, April.
    4. Benjamin Lawrence & Brett Massimino & Jie J. Zhang, 2024. "Decay and Recovery of CSR Routines in Franchise Organizations," Journal of Business Ethics, Springer, vol. 193(3), pages 589-610, September.
    5. Vivian Zheng, Xu & Jenny Ji, Li & Su, Chenting, 2020. "Mitigating the Negative Effects of Regional Clustering in Franchising: The Roles of Governance Mechanisms," Journal of Retailing, Elsevier, vol. 96(3), pages 434-444.
    6. Vázquez-Suárez, Luis & Mejía-Vásquez, Pericles Ramón & Serafim da Silva, Sheila & Sánchez-Gómez, Roberto, 2022. "Gender’s moderating role in the relationship between organisational form and performance in the Spanish supermarket industry," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    7. Runyan, Rodney C. & Droge, Cornelia, 2008. "A categorization of small retailer research streams: What does it portend for future research?," Journal of Retailing, Elsevier, vol. 84(1), pages 77-94.
    8. Kretinin, Andrey & Anokhin, Sergey & Wincent, Joakim, 2020. "Exploring the antecedents of franchise internationalization," Journal of Business Research, Elsevier, vol. 112(C), pages 422-430.
    9. Brache, Jose & Felzensztein, Christian, 2019. "Geographical co-location on Chilean SME's export performance," Journal of Business Research, Elsevier, vol. 105(C), pages 310-321.
    10. Grace, Debra & Weaven, Scott & Frazer, Lorelle & Giddings, Jeff, 2013. "Examining the Role of Franchisee Normative Expectations in Relationship Evaluation," Journal of Retailing, Elsevier, vol. 89(2), pages 219-230.
    11. Boulay, Jacques & Caemmerer, Barbara & Evanschitzky, Heiner & Duniach, Krista, 2020. "Multi-unit franchising from franchisor and franchisee perspectives: Antecedents, performance outcomes, and the optimal mini-chain size," Journal of Business Research, Elsevier, vol. 113(C), pages 49-58.
    12. Félix Modrego & Dusan Paredes & Gianni Romaní, 2017. "Individual and place-based drivers of self-employment in Chile," Small Business Economics, Springer, vol. 49(2), pages 469-492, August.
    13. Andreas Koch & Jochen Späth & Harald Strotmann, 2013. "The role of employees for post-entry firm growth," Small Business Economics, Springer, vol. 41(3), pages 733-755, October.
    14. Josef Windsperger, 2013. "The governance of franchising networks," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 27, Edward Elgar Publishing.
    15. S. Verbieren & M. Cools & A. Van den Abbeele, 2008. "Franchising. A Literature Review on Management and Control Issues," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(4), pages 398-443.
    16. Jung Hwan Koh & Christian Rojas, 2022. "Multi‐unit ownership and market power: A study of the lodging industry in Texas," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 4087-4105, December.
    17. Belloc, Ignacio, 2022. "Emprendimiento en entornos rurales: Evidencia con la Encuesta Europea sobre Condiciones Laborales [Entrepreneurship in rural settings: Evidence from the European Working Conditions Survey]," MPRA Paper 111591, University Library of Munich, Germany.
    18. Weaven, Scott & Baker, Brent L. & Edwards, Chase & Frazer, Lorelle & Grace, Debra, 2018. "Predicting organizational form choice from pre-entry characteristics of franchisees," Australasian marketing journal, Elsevier, vol. 26(1), pages 49-58.
    19. Maryse J. Brand & Evelien P. M. Croonen & Roger T. A. J. Leenders, 2018. "Entrepreneurial networking: a blessing or a curse? Differential effects for low, medium and high performing franchisees," Small Business Economics, Springer, vol. 50(4), pages 783-805, April.
    20. Lanchimba, Cintya & Welsh, Dianne H.B. & Fadairo, Muriel & Silva, Vivian-Lara D.S., 2021. "The impact of franchisor signaling on entrepreneurship in emerging markets," Journal of Business Research, Elsevier, vol. 131(C), pages 337-348.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-19-00865. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.