Olav Sorenson and Jesper B. S\u00f8rensen<\/strong><\/p>\n

Franchising provides an increasingly important vehicle for entrepreneurial wealth creation and accounts for a large and growing share of business in the retail and service sectors. Chains\u2014which operate in dispersed markets\u2014most frequently use this form of governance. These \ufb01rms must balance the centralization and standardization required for ef\ufb01ciency with the adaptation needed for success in varied local markets. By adopting an organizational learning perspective, we argue that the mix of company-owned and franchised units affects this balance, thereby in\ufb02uencing chain performance. In particular, the different incentives facing company managers and the entrepreneurs that manage franchises encourage distinct patterns of organizational learning. Franchised establishments provide better opportunities for the \ufb01rm to learn through experimentation; however, companies \ufb01nd it easier to diffuse this information and enforce standards through their company-owned units. Analyses of franchised restaurant chains in the United States provide empirical evidence of this trade-off.<\/p>\n

Strategic Management Journal<\/a><\/em><\/strong>, 22 (2001): 713-724<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Olav Sorenson and Jesper B. S\u00f8rensen Franchising provides an increasingly important vehicle for entrepreneurial wealth creation and accounts for a large and growing share of business in the retail and service sectors. Chains\u2014which operate in dispersed markets\u2014most frequently use this form of governance. These \ufb01rms must balance the centralization and standardization required for ef\ufb01ciency with […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[31,19,32,20],"_links":{"self":[{"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/posts\/41"}],"collection":[{"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=41"}],"version-history":[{"count":3,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/posts\/41\/revisions"}],"predecessor-version":[{"id":44,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/posts\/41\/revisions\/44"}],"wp:attachment":[{"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}