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Franchising, local market characteristics and alcohol sales to minors

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  • Utgård, Jakob
  • Nygaard, Arne
  • Dahlstrom, Robert

Abstract

This study examines how organizational form (corporate or franchised store) and local market characteristics (competition, size and risk of sanctions) influence retail stores' likelihood of selling alcohol to minors. Drawing on agency theory, we hypothesize that franchised stores are more likely than corporate stores to sell alcohol to minors. We also examine whether local market competition, risk of sanctions, and market size influence the relationship between franchising and alcohol sales to minors. We test the hypotheses with data collected by minors attempting to purchase alcohol in retail stores. The results offer partial support to the theoretical predictions and have implications for retail chains and regulators.

Suggested Citation

  • Utgård, Jakob & Nygaard, Arne & Dahlstrom, Robert, 2015. "Franchising, local market characteristics and alcohol sales to minors," Journal of Business Research, Elsevier, vol. 68(10), pages 2117-2124.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:10:p:2117-2124
    DOI: 10.1016/j.jbusres.2015.03.010
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    2. Kejia Hu & Sunil Chopra & Yuche Chen, 2021. "The Effect of Tightening Standards on Automakers’ Non‐compliance," Production and Operations Management, Production and Operations Management Society, vol. 30(9), pages 3094-3115, September.

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