TY - JOUR
T1 - Organization governance form in franchising
T2 - Efficient contracting or organizational momentum?
AU - Mitsuhashi, Hitoshi
AU - Shane, Scott
AU - Sine, Wesley D.
N1 - Copyright:
Copyright 2008 Elsevier B.V., All rights reserved.
PY - 2008/10
Y1 - 2008/10
N2 - We examine firms' choice of organizational governance form. Using longitudinal data on a sample of business format franchisors operating in North America, we show that the cross-sectional evidence commonly used to demonstrate support for efficient contracting explanations for organizational governance form is not robust to the year of investigation, firm effects, or selection effects. We theorize that this outcome may result from dynamic processes through which a firm's organizational governance form evolves. We develop and test two hypotheses for the effects of organizational momentum on organizational governance form, and find that organizational momentum is a robust predictor. Our results suggest that researchers consider the dynamics of momentum in explaining the form of firm governance.
AB - We examine firms' choice of organizational governance form. Using longitudinal data on a sample of business format franchisors operating in North America, we show that the cross-sectional evidence commonly used to demonstrate support for efficient contracting explanations for organizational governance form is not robust to the year of investigation, firm effects, or selection effects. We theorize that this outcome may result from dynamic processes through which a firm's organizational governance form evolves. We develop and test two hypotheses for the effects of organizational momentum on organizational governance form, and find that organizational momentum is a robust predictor. Our results suggest that researchers consider the dynamics of momentum in explaining the form of firm governance.
KW - Efficient contractine
KW - Franchising
KW - Governance form
KW - Organizational momentum
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U2 - 10.1002/smj.702
DO - 10.1002/smj.702
M3 - Review article
AN - SCOPUS:53149108573
VL - 29
SP - 1127
EP - 1136
JO - Strategic Management Journal
JF - Strategic Management Journal
SN - 0143-2095
IS - 10
ER -