Download now Free registration required
Many companies operate units which are dispersed across different types of markets, and thus serve significantly diverging customer bases. Such market-type dispersion is likely to compromise the headquarters' ability to control its local managers' behavior and satisfy the divergent needs of different types of customers. In this paper the authors find evidence that market-type dispersion is an important determinant of delegation and the provision of incentives. The results are robust to alternative definitions of market-type dispersion and to other determinants of franchising such as the stores' geographic distance from headquarters and geographic dispersion.
- Format: PDF
- Size: 178.6 KB