Multi-Unit Franchising: A Comparative Case Analysis

The objective of this study is to explain the franchisor’s choice between single-unit and multi-unit franchising. We employ a comparative case analysis method to compare the theoretical patterns with the empirical patterns of the governance forms. We selected two multi-national franchise networks based in Austria. Our findings suggest that franchisor’s multi-unit franchising strategy can be explained by monitoring costs, franchisee’s transaction-specific investments, franchisor’s system-specific assets, and franchisor’s financial resources scarcity

Online Video Advertisement Avoidance: Can Interactivity Help?

The objective of this research is to explain the factors contributing toward consumers online video advertisement (OVA) avoidance behavior. Empirical data from 207 online consumers in France supports the hypotheses concerning the effect of relevance of contents, perceived authenticity and interactivity of OVAs. The findings suggest that consumers avoid OVAs by using ad blocker software due to irrelevant advertisement contents, lack of perceived authenticity of advertisement contents and most importantly due to the lack of interactivity. We conclude the study by offering some suggestions for reducing consumers avoidance of OVAs by increasing interactivity

How Do The Relational Investments Affect Relational Outcomes?

The paper integrates insights from transaction cost economics and relational exchange theory to discuss the efficacy of value-creating relational investments in affecting certain relational outcomes in context of supplier-intermediate buyer dyadic relationships. After performing PLS path modelling on a data set of 284 dyadic relationships, it has been found that value-creating relational investments made by the focal suppliers in their (intermediate) buyers positively affect various facets of satisfaction, trust and commitment (altogether, the relationship quality) of the intermediate buyers. It has been further argued that an enhancement in the relationship quality ultimately translates into an enhancement in performance of the inter-firm relationships

Explaining Franchisors Tendency To Use Multi-Unit Franchising: Development Of A Theoretical Model

In this theoretical paper, we give an overview of the development of literature on multi-unit franchising, discuss the theoretical and methodological deficits, and develop a model for empirical test. The main focus of existing franchising research has been on single unit franchising. Although several empirical studies were published on multi-unit franchising in the last decade, the research deficit primarily results from the lack of theoretical foundation of this ownership strategy in franchising networks. As an attempt to address this research gap, we develop an integrative model.  The propositions explain the franchisor’s tendency to use multi-unit franchising in context of transaction cost theory (franchisee’s specific investments and market uncertainty), resource based view (financial resources scarcity), organizational capabilities view (local market know-how and system specific assets) and agency theory (behavioral uncertainty). We plan to empirically test the proposed model in the near future

Multi-unit ownership strategy in franchising

Die Expansion von Franchise-Unternehmen wurde in den letzten Jahren sehr stark durch Multi-unit Franchising (d.h. ein Franchisenehmer hat mehrere Outlets) unterstützt. Ziel der vorliegenden Studie ist die Wahl zwischen Multi-unit Franchising und Single-unit Franchising (d.h. der Franchisenehmer hat nur einen Outlet) mit Hilfe von organisationsökonomischen und strategischen Ansätzen zu erklären. Die Dissertation ist in zwei Teilen aufgebaut: Der erste Teil der Arbeit besteht aus zwei Studien. Erstens wird ein Überblick über die relevante Literatur gegeben. Es wird aufgezeigt, dass die meisten Untersuchungen auf agency-theoretischen Ansätzen basieren. Einige Studien leiten auch Hypothesen vom ressourcen-orientierten Ansatz ab. Die Forschungslücke besteht darin, dass es keine umfassende theoretische Erklärung von Multi-unit Franchising gibt, die sowohl organisationsökonomische und strategische Ansätze integriert. Um diese Forschungslücke zu schließen, wurde ein integratives Modell basierend auf Transaktionskostentheorie, Agencytheorie, Property Rights-Theorie, Screeningtheorie sowie ressourcenorientierte und ‚Organzational Capabilities’- Ansätze entwickelt. Der zweite Teil der Arbeit besteht aus drei Studien, die Property Rights-, Transaktionskosten-, Agencykosten - und Organizational Capabilities-Hypothesen entwickeln und testen In der ersten Arbeit wird eine komparative Fallstudienanalyse durchgeführt. Die empirischen Befunde der beiden Franchiseunternehmen (Coffeeshop Company und Testa Rossa) sind mit den von Agencytheorie, Transaktionskostentheorie und ressourcenorientierten Theorie abgeleiteten Hypothesen weitgehend kompatibel. In der zweiten Studie werden Transaktionskosten- und Organizational Capabilities-Hypothesen mit Hilfe von Daten deutscher Franchise-Unternehmen getestet. Die Ergebnisse bestätigen die Transaktionskosten- und die Organizational Capabilities-Hypothesen. Die dritte Studie presentiert eine Property Rights-Erklärung von Multi-unit Franchising. Nach der Property Rights-Theorie hängt die Struktur der Eigentumsrechte von der Kontrahierbarkeit des systemspezifischen Know-how und der lokalen Marktknow-how ab. Die empirische Ergebnisse bestätigen den negativen Zusammenhang zwischen intangiblem Marktknow-how und der Tendenz zu Multi-unit Franchising. Ferner bestätigen die Ergebnisse, dass die finanziellen Ressourcen des Multi-unit-Franchisenehmers nur dann die Tendenz zu Multi-unit Franchising beeinflussen, wenn die Informationsasymmetrie zwischen Franchisenehmer und potentiellen Fremdkaptialgebern aufgrund des intangiblen lokalen Marktwissens sehr groß ist. Die vorliegende Arbeit liefert folgenden Beitrag zur Forschung: Erstens wird ein umfassender Überblick über die relevante Literatur zum Multi-unit Franchising in den letzten 30 Jahren gegeben. Es wird aufgezeigt, dass die Forschungslücke in der unzureichenden theoretischen Fundierung der bisherigen empirischen Befunde besteht. Ausgehend von diesem Defizit wird ein integratives Modell zur Erklärung von Multi-unit Franchising abgeleitet. Zweitens wird Multi-unit Franchising mit Hilfe von Hypothesen aus der Transaktionskostentheorie, ‚Organizational Capabilities’-Theorie und Property Rightstheorie zu erklären versucht. Die empirischen Befunde vom deutschen Franchisesektor bestätigen die Transaktionskosten-, ‚Organizational Capabilities’ und teilweise die Property Rigths-Hypothesen.Franchising is a popular organizational form and its role in national economies has been well recognized by the researchers. Many franchising researchers attribute the recent growth in franchising to the emergence of multi-unit franchising (an organizational arrangement where one franchisee owns two or more outlets in the same franchise system). The objective of this research is to explain franchisor’s choice between multi-unit franchising and single-unit franchising (traditional one-franchisee one-outlet format) using organizational economics and strategic management theories. This dissertation is divided into two main parts. The first part comprises of two studies that present a detailed literature review and develop an integrative model to explain franchisor’s use of MUF. The findings of the literature review suggest that the previous studies mainly use agency theoretical framework to explain this ownership strategy in franchising. Although some studies also apply resource-based view but the primary research deficit results from the lack of systematic application of these theories. As an attempt to address this research gap, I develop an integrative model based on transaction cost theory, agency theory, resource-based and organizational capabilities views, property rights theory, and screening theory. The second part of the dissertation presents three studies to empirically test some parts of the proposed integrative model. In the first study, I employ a comparative case analysis method to test the predictions concerning agency theory, resource-based and organizational capabilities views, and transaction cost theory. The findings suggest that franchisor’s multi-unit franchising strategy can be explained by franchisee’s transaction-specific investments, franchisor’s system-specific assets, and franchisor’s financial resources scarcity. The second study uses quantitative data from the German franchise sector to empirically test the hypotheses concerning organizational capabilities view and transaction cost theory. The findings support hypotheses proposing positive effects of brand name capital, knowledge transfer capabilities, and franchisee’s transaction-specific investments on the use of multi-unit franchising. The negative influence of environmental uncertainty on the franchisor’s multi-unit ownership strategy is also supported. The third empirical study develops a property rights explanation of the multi-unit ownership strategy of a franchise firm. According to the property rights theory, the structure of ownership rights depends on the contractibility of assets. Empirical results from the German franchise sector provide support of the hypotheses predicting negative effect of non-contractibility of local market assets on the use of multi-unit franchising. In addition, the positive impact of financial assets on the tendency toward multi-unit franchising increases with non-contractibility of local market assets. Compared to the agency theory, which focuses on (complete) incentive contracts that specify residual income rights between the franchisor and franchisee, property rights theory focuses on incomplete contracts that allocate ownership rights between the franchisor and network partners. Furthermore, compared to the transaction and resource-based theory, property rights theory examines the impact of contractibility of resources/assets on the ownership structure. Only non-contractible resources/assets determine the structure of ownership rights. This research contributes to the existing literature on multi-unit franchising by presenting an extensive literature review, developing an integrative model, and providing some new explanations for the franchisor’s use of multi-unit franchising. This research also bears practical implications for the franchising practitioners (franchisors and franchisees). The future research may be directed to find alternative theoretical explanations for the use of multi-unit franchising. In addition, it may also be interesting to integrate the performance of the franchise networks into the theoretical explanations behind the use of different ownership strategies within the franchising setting

The Choice Between Single-Unit And Multi-Unit Franchising: Combining Agency And Transaction Cost Perspectives

This study investigates the factors explaining the franchisor’s choice between single-unit and multi-unit franchising based on agency theory and transaction cost theory. We examine the impact of behavioral uncertainty due to shirking and free-riding, franchisees’ transaction-specific investments, and environmental uncertainty on the franchisor’s choice of multi-unit franchising. Our empirical results from the German franchise sector provide strong support of the transaction cost hypotheses and relatively weak support of the agency-theoretical hypotheses. This study contributes to the literature by showing that the transaction cost explanation complements the agency cost explanation of multi-unit franchising

Gastric stromal tumors: clinical presentations, diagnosis and outcome

Objective: To determine the clinical presentations, of gastric stromal tumors with diagnostic methods, pathology and outcome after surgery. Study Design: A case series. Duration and Setting: From January 1988 to December 2002 at The Aga Khan University Hospital, Karachi. Patients and Methods: All patients of age 14 years and above, diagnosed histopathologically to have gastric stromal tumors were included. The data of these patients was collected retrospectively from January 1988 to December 1998, and prospectively from January 1999 to December 2002. All the patients were studied as a single group. Results: There were 11 patients. Their mean age was 54 years, with 8 males and 3 females. Five patients presented with upper gastrointestinal bleeding, and 4 with lower gastrointestinal bleeding. Eight patients had pain in epigastrium and 2 had vomiting. Upper gastrointestinal endoscopy was done in all patients, and ultrasound was done in 4 patients. CT scan was done in 7 patients. Preoperative diagnosis could be made in 6 patients. Only one patient had liver metastasis. Wedge resection was performed in 5 proximal gastrectomy with gastroesophageal anastomosis in 3, and partial gastrectomy with gastrojejunostomy in another 3 patients. The mean tumor size was 8.0 centimeters. Two patients had benign, 2 had intermediate and 7 had malignant tumors. The mean duration of followup was 41 months. Follow-up was completed in 8 patients, out of whom 6 were alive, and 2 patients expired due to other causes at the time of completion of this study.Conclusion: Gastric stromal tumors are uncommon. Larger gastric stromal tumors are usually symptomatic with gastrointestinal bleeding as a common presentation. Immunohistochemical techniques are required for the diagnosis. Complete surgical resection is the curative therapy

Surgical palliation for unresectable pancreatic carcinoma

Objectives: To review the results of surgical palliation for unresectable pancreatic carcinoma, and to analyze the morbidity and mortality associated with the surgical procedure. The reasons for readmission after discharge from the hospital were also analyzed.Methods: A retrospective study from 1995 to 2001 was done on 30 patients with pancreatic cancer operated with palliative intent, or those explored with curative intent but histopathology revealed positive resection margins or lymph node metastasis.Results: Twenty-five (83.25%) patients were above 50 years of age. There were 16 (53.28%) male, and 14 (46.62%) females, 8 (26.64%) had diabetes mellitus, 2 (6.66%) chronic pancreatitis and 4 (13.32%) had smoking as risk factors. Twenty-three (76.59%) patients presented with jaundice, 18 (59.94%) with weight loss, 17 (56.61%) with epigastric pain, 15 (49.95%) with anorexia and 14 (46.62%) with vomiting. Whipple\u27s procedure was performed in 9 (29.97%) patients, triple bypass in 13 (43.29%), choledochojejunostomy and gastrojejunostomy in 3 (9.99%) and gastrojejunostomy alone in 5 (16.65%) patients. Seven (23.31%) patients had preoperative ultrasonography, while CT Scan was done in 24 (79.92%) and ERCP in 8 (26.64%) patients. Histopathology showed positive resection margins in 9 (29.97%) patients and lymph node metastasis in 5 (16.65%) patients. Seventeen (56.61%) patients received less than 2 units of pack cells transfusion. Most of the patients remained admitted in the hospital between 20 to 30 days. Post-operatively, delayed gastric emptying was detected in 6 (19.98%) patients, cholangitis in 2 (6.66%), wound infection in 3 (9.99%), anastomotic leak in 2 (6.66%) and line sepsis in 2 (6.66%) patients. Three (9.99%) patients expired in hospital post operatively. The reasons for re-admission after discharge included abdominal pain in 9 (29.97%) patients, anemia in 3 (9.99%), intestinal obstruction in 3 (9.99%) and urinary tract infection in 2 (6.66%) patients. Follow up record was available for 22 (73.26%) patients. Six (19.98%) patients survived for 5 to 6 months and 9 (29.97%) had a survival between 7 to 10 months.CONCLUSION: A single surgical procedure can palliate all three symptoms associated with unresectable pancreatic carcinoma, and can be carried out with reasonable safety in selected patients. The commonest indication for re-admission is severe abdominal pain associated with advanced malignancy, hence chemical splanchiectomy may also be considered at the time of surgical exploration

Evaluation of mineral, proximate compositions and anti-oxidant activities of some wild edible vegetables of District Kurram Khyber Pakhtunkhwa, Pakistan

This study was conducted to determine the mineral contents and some nutritional properties of five local wild vegetable; Allium griffithianum Boiss, Buglossoides arvensis (L.) I.M.Johnst., Caralluma tuberculata (N.E.Br.) D. C. H. Plowes, Chaerophyllum reflexum Aitch, and Stellaria media (L.) Vill., from district Kurram KP, Pakistan which are associated with folk knowledge in the region. This research is the first scientific report on the nutritional composition of the above mentioned species. Among five wild species, the Buglossoides arvensis had the highest carbohydrates content (71.99 ± 0.5%) and high lipid contents (4.8 ± 0.2%). Besides that, it has the highest total energy (349.024 kcal/100 g). Stellaria media was found to have the maximum ash (22.77 ± 0.1%) and lipids (4.87 ± 0.06%). Chaerophyllum reflexum showed the highest protein content (10.5 ±0.4%) and high total energy (332.68 ± 0.3 kcal/100 g). Mineral analysis showed that the local wild vegetables contained considerable amount of minerals; Calcium (2.20 ± 0.5-1506 ± 0.06 µg/g), Potassium (3.018 ± 1.7-1272.06 ± 0.005 µg/g), Phosphorous (2.98 ± 0.01-180.01 ± 0.1 µg/g), Chromium (0.98 ± 0.6-42.9 ± 0.5 µg/g), Cobalt (0.18 ±0.005-7.7 ± 0.2 µg/g), Sodium (0.78 ± 0.5-205.53 ± 0.4 µg/g) and Copper (5.5 ± 0.4-35.06 ± 0.7 µg/g). These data suggest that wild plants from district Kurram could be useful for nutrition or other applications. For instance, Caralluma tuberculata contains the highest number of mineral elements, which has been traditionally used as an anti-diabetic, blood purifier and for weight loss

Management outcome of residual common bile duct stones at Aga Khan University Hospital

Background: The frequency of residual common bile duct (CBD) stones in patients with previous cholecystectomy ranges from 2-10%, and a minimally invasive approach is generally recommended for these patients. This study reviews the experience in the management of residual CBD stones at the Aga Khan University Hospital.Methods: All adult patients diagnosed to have residual CBD stones, from 1993 to 2001, were identified and analyzed in terms of the treatment modality utilized and its associated complications. The role of endoscopic sphincterotomy was particularly analyzed in our set-up.Results: The study population consisted of 66 patients. The mean age was 52 (range:18-84 years) years with a female to male ratio of 51:15. The primary mode of management consisted of endoscopic sphincterotomy in 61 patients (92.5%). The initial clearance rate for these patients was 75%, while the remaining 25% required ancillary procedures to achieve a complete clearance. Procedure related complications were observed in 17 (28%) patients, with zero mortality. The other 5 patients (7.5%) underwent an open choledochotomy as a primary procedure with no further complications.CONCLUSIONS: Endoscopic sphincterotomy is the most frequent treatment modality used for the management of residual CBD stones at our hospital. Although initial success rate seems low, the fact that endoscopic sphincterotomy is a less invasive procedure justifies its preferential utilization. The study does not compare the results of endoscopic management with open surgery, as the number of patients managed by open choledochotomy is very small