Audhesh K. Paswan

What we know about ownership redirection in franchising: A meta-analysis

Abstract Oxenfeldt and Kellys provocative ownership redirection thesis—the premise that there May be a deliberate effort on the part of the more powerful franchisors to convert the previously franchisee-owned outlets into company-owned outlets—has attracted considerable research attention. However, the empirical evidence on the thesis remains equivocal. This paper reports the results of a meta-analysis of the existing studies of ownership redirection. The focus of the analysis is on the disparate operationalizations of the phenomenon itself, and the manner in which the construct measurement affects the determination of its existence.

An empirical investigation of the linkages among relationalism, environmental uncertainty, and bureaucratization

Abstract This study empirically examines the relationships among the constructs of environmental uncertainty, bureaucratization, and emergent relationalism in distribution channels. In doing so, two important streams of literature—political economy framework and Macneil’s relational exchange theory—are brought together for the first time. Analyses of data from the pharmaceutical industry’s channels of distribution, using structural equations modeling support an interactive nonrecursive relationship among these factors. Specifically, it is found that (1) environmental uncertainty affects relationalism positively, whereas relationalism affects environmental uncertainty negatively; (2) bureaucratization and relationalism influence each other negatively; and (3) environmental uncertainty and bureaucratization affect each other positively. The results also suggest that relationalism is more powerful in mitigating the perceptions of bureaucratization and environmental uncertainty than the perceptions of bureaucratization and environmental uncertainty are in preventing relationalism. The empirical data for the study were obtained from the pharmaceutical industry’s channels of distribution.

Ownership redirection trends in franchising

Franchising has long been seen as an avenue into small business. For some, it offers opportunities to build up franchise systems, as franchisors, by cloning small business success in exchange for a royalty. For many others, as franchisees, it offers opportunities for self‐employment, combining elements of the independence normally associated with self‐employment allied with the security derived from association with a tried‐and‐tested business system. However, there is an ongoing debate, the ownership redirection thesis, which suggests that franchise systems will only characteristically seek to involve franchisees in their business growth strategies during the early phases of business development. Thereafter, when finance, human capital and local market intelligence resources are no longer at a premium, the thesis predicts, franchisors will reduce their dependence on franchising with franchisees the prime casualties. Assesses the available evidence on the ownership redirection thesis and offers some fresh data on the issue.

The effect of financial resource availability and system size on ownership redirection in franchised channels of distribution

Examines the effects of financial resource availability and system size on ownership redirection patterns – the argument that successful franchisors will acquire less successful franchisee units, resulting in corporate ownership – in 12 franchising business sectors. Discusses the theory of ownership redirection in more depth. Hypothesizes that: as franchise systems gain increased financial resources, there is a greater likelihood of ownership redirection favouring the franchisors; and that, as the size of the franchise system increases, there is a greater likelihood of ownership redirection favouring the franchisors. Draws on data from the US “Franchising in the economy”, over the period 1977‐1986. Conducts a LISREL‐based path analytic approach. Finds a more complex interplay of effects than anticipated, particularly that differences occur depending on the business sector – uniform effect patterns occur in educational products and services, laundry and dry cleaning services, and rental equipment; conversion orientation patterns occur in hotels, motels and campsites; cautious redirection patterns occur in the automotive products and services industry; and, finally, strategic dilemma patterns occur in food retailing. Concludes that further research is required to substantiate (or not) the theory on ownership redirection.

Interrelationships Between Structural And Relational Dimensions

This study examines the interrelations between designed or purposive structure and emergent relational norm of channel governance system. The impetus for this study comes from the rich channel literature base incorporating political economy and relational exchange perspective (cf. Achrol, Reve and Stern 1983; Dant and Schul 1992; Dwyer and Oh 1987; Dwyer, Schurr, and Oh 1987; Dwyer and Welsh 1985; Kaufmann and Dant 1992; Stern and Reve 1980).

A Contingency Perspective of Student Performance in the Principles of Marketing Classes

This study empirically examines the effect of class/exam timings (50 minute versus 75 minute classes), number of questions in an exam, gender and year in college on student performance in exams. The focus of investigation is Principles of Marketing course. The results from ANOV A and pair-wise comparison of exam scores indicate that these variables have no effect on student score on any exam. These non-effects have very serious implications on the notions such as academic freedom and administrative flexibility.

Number of Factors Obtained by Chance: A Simulation Study

This simulation study examines the effects of sample size, number of initial variables, and scale range on the number of factors extracted due to chance correlation. The ANOVA results indicate that sample size has a positive, and number of variables a negative effect on the number of factors extracted. The scale range, however, has no direct effect. Instead, it acts as a covariate.

A Validation of Macneil’s Relational Norms in an Indian Context

This exploratory study empirically examines the validity of three of Macneil’s relational norms within the context of Indian buyer-seller relationships. Results provide support for the contention that the relational norms scales developed in North America and Northern Europe are exportable to other regions of the globe. However, the underlying structure of relationalism between buyers and sellers in India possesses both an immediate and a long-term perspective, tangible and intangible monitoring, and general versus specific performance expectations.

Ownership Redirection in Franchising: a Conceptual Exploration of the Moderating Effect of Relationalism

The empirical evidence on Oxenfeldt and Kellys ownership redirection thesis seems to remain ambiguous. Most of the studies have concentrated on examination of the phenomenon itself. Some studies have looked at the outcomes and affects of ownership redirection. Even fewer studies have examined the antecedents of ownership redirection. In general, the studies have attempted to explain the notion of ownership redirection from a rational and economic perspective. The notion of relational norm in franchising, although implied, has not been explicitly investigated. This study, through a series of propositions, begins this new research branch by conceptually examining the relationship between ownership direction and the relationship progression perspective (which includes the relational norm concept) in the context of franchising.

Student Ratings of Instruction: a Causal Analysis of Process Variables

Student ratings of instruction is one of the most widely used methods of measuring teaching effectiveness in post-secondary education (Abrami, d’Apollonia, and Cohen 1990). Wilson and Wilson (1977), using a student evaluation of instruction form, commonly known as the Student Instructional Rating System (SIRS Research Report #2, 1971), confirmed the existence of five predominate factors: (1) Course Organization, (2) Course Demands, (3) Student-Instructor Interaction, (4) Instructor Involvement, and (5) Student Interest. Upon closer inspection, these five factors appear to represent both inputs and outcomes of the teaching process. However, past studies have not examined these from a causal-effect perspective. This study applies structural equation modeling, a statistical technique frequently used by marketing academicians, to a widely used student rating of instruction form for evidence of nomological validity. Instructor Involvement and Student Interest are being treated as outcomes of the teaching process with reciprocal causal relationship between them with the remaining three factors capturing inputs in the teaching process. The causal linkages correspond to the hypotheses tested in this study. The causal model is tested using data from routine teaching evaluations of one instructor at a mid-sized midwestern university. The scale items (of student evaluation form based on SIRS) were tested for internal consistency, discriminate and convergent validity. The factors then were tested for causal relationships, and the fit indices, collectively, indicate a satisfactory model fit. The resulting nomological relationships between the input and the purported outcome variables, present an interesting scenario. Of the three input variables only one, Course Organization, has a consistent significant effect on both Instructor Involvement and Student Interest. A plausible explanation could lie in the inability of our students to handle uncertain situations, framing of the questions, and the transient nature of student-teacher interaction at our universities. There is a need to replicate this study to a larger sample in terms of instructor in order to gain a better understanding of a topic as vital and sometimes controversial as student rating of instruction.