B Meiseberg

Lost in Translation? The Prevalence and Performance Impact of Corporate Social Responsibility in Franchising

Corporate social responsibility (CSR) is much discussed by researchers and executives and often occupies a prominent position on corporate Internet sites. Yet, little is known about CSR initiatives in franchising, although there are significant organizational differences between corporate firms and franchised chains. Building on the strategic view of CSR and using data from 76 franchise systems, this study explores the prevalence and performance outcomes of CSR in franchising. We focus on system�?specific, industry, and competitive factors that determine the degree to which franchise systems behave in a socially responsible manner and on performance effects of CSR initiatives targeted toward various stakeholder groups.

We Don't Need Another Hero - Implications from Network Structure and Resource Commitment for Movie Performance

This study offers a new framework for organizing a motion picture in such a way that enhances its chances for box-office success. We combine and expand two strands of research for the moviemaking industry: the economic approach and the social network perspective. Specifically, we integrate the product-inherent categories of the creative sphere and financial resources and the product-induced categories of marketing support and competition with concepts from social network analysis (i.e., connectivity and density). We test our hypotheses on a sample of top ten German movies as to box-office admissions for the period 1990–2004. We find that extensive care and industry knowledge are required when organizing the economic and social framework in which a film project is undertaken, since ultimately, movie success does not depend on individual star power. On the contrary, the real star is the team.

Benefits of Inner Strength for Franchise System Expansion

For every franchise system, making the leap from the unknown to the common place requires a strategic plan for growth. The exogenous market perspective holds that evaluating market conditions is central to defining promising outlet locations as there are direct economic effects on performance. The endogenous firm perspective and the social network approach together provide an inner strength perspective on interconnected firms; this perspective holds that access to resources offered at a certain spot determines site attractiveness, rather than location-specific market factors. Using a sample of 201 German franchisees, this study tests hypotheses that explore which perspective dominates location decisions in practice and clarify the relevance of the decisive criteria for outlet performance. Results show that location decisions rely on both perspectives, yet franchisee performance depends more on inner strength factors. We also find that expansion is better served by following a geographically dispersed cluster approach than by growing steadily from a baseline site.

Resale prices in franchising: insights from franchisee perspectives

Purpose The purpose of this paper is to offer a novel perspective on resale pricing in franchising, i.e. from a franchisee perspective, by combining legal and managerial considerations in the European context. The objective is to assess franchisee perceptions regarding resale pricing in their chains. Design/methodology/approach The authors adopt a qualitative approach and use 46 in-depth interviews with franchisees covering retail and service industries in the French market. Findings Many of the interviewed franchisees believe that joining a franchise chain involves respecting the recommended resale prices. For some of the franchisees, in link with the chain uniformity, imposing uniform resale prices throughout the chain represents a strength, because customers who visit different stores within the franchise chain expect to find consistent pricing. Moreover, many franchisees consider that their franchisors have some know-how that they use to set correct resale prices, taking into account the profit margin. Research limitations/implications This research contributes to the literature on resale pricing in franchising, as well as the franchising literature in general, by combining legal and managerial considerations, adopting a franchisee perspective, covering retail and service industries and focusing on French and European markets. Practical implications This research can be viewed by franchise experts, franchisors, franchisees and franchisee candidates as a synthesis of resale price-related legal aspects, adopted practices and potential conflicts in franchise chains in the French market. It also highlights price-related practices to be avoided to prevent potential conflicts. Originality/value The subject of resale pricing in franchise chains is a hot topic, because of its link with customer attraction, chain uniformity, franchisor know-how, franchisee autonomy and the legal dimension.

A Cross-National Comparison of the Role of Habit in Linkages Between Customer Satisfaction and Firm Reputation and Their Effects on Firm-Level Outcomes in Franchising

Profiting from the substantial economic growth outside the Western economies requires firms to develop a profound understanding of effective strategies for global operations. In particular, much debate has been offered on management practices that are applicable to trigger desired customer behavior, especially, to enhance firm-level outcomes in terms of customer loyalty and word-of-mouth referral. However, research on mechanisms that can help drive such customer behavior has mainly focused on consumers’ intentional processes, which ignores the fact that frequently performed behaviors become automatic over time. Ignoring habit-persistency effects may result in systematically overestimating the effects of other practices firms adopt to influence customer behavior, e.g. striving for strategic goals like customer satisfaction or firm reputation. Against this background, this study contributes to the literature by integrating the concepts of habit creation, customer satisfaction and firm reputation and by generating cross-national insights into their effects on firm-level outcomes in terms of loyalty and word-of-mouth. Applying multigroup structural equation modeling, the analyses draw on two global fast food companies’ consumer data collected in the BRIC and their domestic US market. The results document essentially diverging nomological linkages among the concepts under study across nations and provide important intuitions on how global companies strategize best when going international.

Performance Implications of Network Structure, Resource Investment, and Competition in the German Motion Picture Industry

This study offers a new framework for organizing a motion picture in such a way that chances for box-office success are enhanced. We combine and expand two strands of research for the moviemaking industry: the economic approach and the social network perspective. Therefore, we integrate the product-inherent categories of creative sphere and financial resources as well as the product-induced categories of marketing support and competition with concepts from social network analysis (i.e., connectivity and density). We test our hypotheses on a sample of each year’s top ten German movies as to box-office admissions for the period 1990–2004. In particular, we find that extensive care and industry knowledge are required when organizing the economic and social framework in which a film project is undertaken, since ultimately, movie success does not depend on individual star power. On the contrary: The real star is the team.

Conflict Dynamics in Interfirm Relationships: An Exploratory Analysis of the Importance of Governance Mechanisms

The level of conflict present in interfirm relationships largely determines the partners’ ability to realize relationship performance goals because conflict can create costs that substantially decrease or even exceed cooperation benefits. Although scholars have called emphatically for studying the dynamics of conflict, empirical investigations of interorganizational conflict development are scarce. Consequently, we explore the evolutionary dynamics of conflict in interfirm relationships, for what is ostensibly the first time based on all the five sequential states of conflict as proposed by the “dominant process model” (Pondy 1967). We argue that the selection and implementation of formal as well as relational governance mechanisms are central drivers of conflict transitions. Therefore, on the basis of extensive longitudinal data from retailers of Germany’s two largest grocery chains, our exploratory analyses examine conflict from a process perspective and provide insights into the relative importance of governance mechanisms over the conflict “lifecycle”.

Inner Strength Against Competitive Forces: Successful Site Selection for Franchise Network Expansion

For every franchise system, making the leap from the unknown to the commonplace requires a strategic plan for growth. The exogenous market perspective holds that evaluating market conditions is central to defining promising outlet locations since there are direct economic effects on performance arising specifically from location. The endogenous firm perspective (the resource-based view) and the social network approach together provide an inner strength perspective on interconnected firms; this perspective holds that access to internal and external resources offered at a certain spot determines site attractiveness, rather than location-specific market factors. This study combines both literature strands and, using a sample of 201 German franchisees, tests hypotheses (1) that explore which perspective dominates location decisions in practice, and (2) that seek to clarify the relevance of the decisive criteria for outlet performance. Results show that location decisions rely on both perspectives, yet, franchisee performance depends rather more on inner strength factors. We also find that expansion is better served by following a geographically dispersed cluster-approach, than by growing steadily from a baseline site.

The Economics of Sensationalism: The Lack of Effect of Scandal-Reporting on Business Outcomes

ABSTRACT It goes nearly unchallenged that ambition for increased demand and therefore commercial forces induce newspapers to engage in sensationalism. However, who actually benefits, and to what extent, by reporting on alleged scandals remains largely unclear. Accordingly, this study evaluates the business outcomes of the most spectacular German scandal in recent decades. The results provide an explanation for an intentional lack of high-quality journalism; whereas news corporations, as well as advertisers, come away empty-handed, sensationalism seems to be incited by self-seeking journalists.

Effects of Evolutionary Rules on Cooperative Tendencies in Franchising Networks

We develop a conceptual framework that integrates concepts from evolutionary (game) theory and from cultural anthropology to study how cooperation emerges and persists within organizational contexts. In particular, we argue the case for three rules that govern the evolution of cooperation—kinship selection, direct reciprocity, and indirect reciprocity. We apply these rules to a cooperative arrangement that displays particularly interesting features as regards its entrepreneurial members’ tendencies towards choosing cooperative vs. defective, or “free-riding”, behavior: to the franchise form of organization. We further argue that social learning and cultural transmission mechanisms support these three rules of cooperation, so that cooperation can evolve and remain stable even in noisy and large group environments. The model helps organizations understand factors that affect cooperative tendencies among its network members, and provides direction on how to foster, promote, and fine-tune a cooperative climate in the network—initially, as well as in the long run. Accordingly, we develop specific propositions concerning the evolution of inter-firm cooperation within the franchised type of business.