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Choi, Young Rok
Entrepreneurship & Innovation Strategy Lab
Research Interests
  • Entrepreneurship, Innovation Strategy, Family & Small Business, Strategic Alliances

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Growth Through Franchises in Knowledge-Intensive Industries: Interplay of Routine Program and Expansion Mode

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Title
Growth Through Franchises in Knowledge-Intensive Industries: Interplay of Routine Program and Expansion Mode
Author
Lévesque. MorenChoi, Young RokHsuan, Juliana
Issue Date
2019-11
Publisher
IEEE-INST ELECTRICAL ELECTRONICS ENGINEERS INC
Citation
IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, v.66, no.4, pp.496 - 513
Abstract
Thanks to technological developments produced by scientists and engineers, franchising has grown to become a business model of choice for firm expansion in knowledge-intensive industries. We propose a formal model to explore to what degree franchisors should adapt their business practices or routines to successfully expand their franchises in newly targeted markets. By simultaneously considering the franchise's need to adapt locally in a new market and the level of business routine tacitness at the time of expansion, we integrate previously separate agency cost logics into one model. We offer refinements to the belief that expanding through a franchisee is the best when the business routines need adaptation, but expanding through a company-owned unit is best when these routines can be replicated.
URI
https://scholarworks.unist.ac.kr/handle/201301/24409
URL
https://ieeexplore.ieee.org/document/8429107
DOI
10.1109/TEM.2018.2858550
ISSN
0018-9391
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SBA_Journal Papers
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