Authors: Aksel I. Rokkan; Arne Nygaard; Robert Dahlstrom; Sven A. Haugland
The study focuses on the choice of alternative governance forms in the service industry. We analyses the choice between traditional independently owned and managed firms and vertical marketing systems like voluntary chains, franchising and vertically integrated chains. Based on agency theory and scale theory we argue that factors such as the need for control of service quality, the level of control costs, financial risk and scale, and the market environment affect the choice of governance form. Our hypotheses were tested on a sample of 650 hotels. The results indicate that size, population size and population density of the local market are important factors influencing the choice of governance form.
Journal: ( – )
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Publish Year: 2003
Conference: Lugano, Switzerland (2003)