| Budget Amount *help |
¥4,680,000 (Direct Cost: ¥3,600,000、Indirect Cost: ¥1,080,000)
Fiscal Year 2015: ¥1,560,000 (Direct Cost: ¥1,200,000、Indirect Cost: ¥360,000)
Fiscal Year 2014: ¥1,430,000 (Direct Cost: ¥1,100,000、Indirect Cost: ¥330,000)
Fiscal Year 2013: ¥1,690,000 (Direct Cost: ¥1,300,000、Indirect Cost: ¥390,000)
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| Outline of Final Research Achievements |
In this study, I investigate why firms use franchising from both knowledge-based theory and transaction cost theory. Specifically, I theorize that franchising decision process consists of two stage decision processes: (1) the first concerns the feasibility of franchising; and (2) the second concerns the adoption of franchise strategy when franchising is feasible for the firm. I collected survey data from retail and restaurant industries, and I used multivariate analysis to test the hypotheses. I found the following results: (1) As knowledge transfer is facilitated by standardization of work and operational manuals, firms are more likely to franchise their businesses; and (2) As transaction cost increases by asset specificity and uncertainty, firms are less likely to franchise them. Also, I found that the decision to franchise is affected by organizational culture and risk perception when franchising becomes a feasible strategy with easiness of knowledge transfer.
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