New Developments in the Theory of Networks Franchising, Alliances an

The theory of networks aims at developing theoretical views on the design and management of alliances, franchise chains, licensing, joint ventures, cooperatives, and venture capital relations. The current trend in economics and management of networks is t

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For further volumes: http://www.springer.com/series/1505

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Mika Tuunanen Josef Windsperger Ge´rard Cliquet George Hendrikse l

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Editors

New Developments in the Theory of Networks Franchising, Alliances and Cooperatives

Editors Adjunct Prof./Docent, Dr. Mika Tuunanen University of Jyva¨skyla¨ Jyva¨skyla¨ University School of Business and Economics PO Box 35 FI-40014 University of Jyva¨skyla¨ Finland [email protected] Prof. Dr. Ge´rard Cliquet University of Rennes 1 Institute of Management (IAE) 11 rue Jean Mace´ 35708 Rennes, Cedex 7 France [email protected]

Prof. Dr. Josef Windsperger University of Vienna Center of Business Studies Bru¨nner Straße 72 1210 Vienna Austria [email protected] Prof. Dr. George Hendrikse Erasmus University Rotterdam Rotterdam School of Management Burg. Oudlaan 50, Office T08-56 3062 PA Rotterdam The Netherlands [email protected]

Funding from the Austrian Federal Ministry of Science and Research in Vienna is gratefully acknowledged.

ISBN 978-3-7908-2614-2 e-ISBN 978-3-7908-2615-9 DOI 10.1007/978-3-7908-2615-9 Springer Heidelberg Dordrecht London New York # Springer-Verlag Berlin Heidelberg 2011 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: SPi Publisher Services Printed on acid-free paper Physica‐Verlag is a brand of Springer‐Verlag Berlin Heidelberg Springer‐Verlag is a part of Springer Science+Business Media (www.springer.com)

Contents

New Developments in the Theory of Networks: Introduction . . . . . . . . . . . . . . 1 Josef Windsperger and Mika Tuunanen Part A

Franchising

Contract Design and Decision Rights Determinants of Contractual Completeness in Franchising . . . . . . . . . . . . . . . 13 George Hendrikse and Josef Windsperger Delegation and Autonomy in Franchising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Begon˜a Lo´pez-Ferna´ndez and Susana Lo´pez-Bayo´n Allocation of Decision Rights in International Franchise Firms: The Case of Master and Direct Franchising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Nada Mumdzˇiev Incentives and Ownership Strategy Incentives and Control in Company-Owned Versus Franchised Outlets: An Empirical Study at the Chain Level . . . . . . . . . .