Electronic Theses and Dissertations

Date of Award

2019

Document Type

Dissertation

Degree Name

Ph.D. in Business Administration

Department

Management

First Advisor

Clay Dibrell

Second Advisor

Hyun-Soo Woo

Third Advisor

Richard Gentry

Relational Format

dissertation/thesis

Abstract

This dissertation examines the strategic decision of franchising firms to convert company-owned outlets to franchise contracts in response to persistent agency problems. Moreover, this study investigates how franchisor-level, market-level, and outlet-level characteristics interact with this relationship. Using a longitudinal sample of company-owned fast-food restaurants, I find that increased agency problems at focal restaurants increases the likelihood of being converted to a franchise and that this relationship is moderated by both franchisor- and outlet-level characteristics but not market-level characteristics. Limitations and future research opportunities are discussed.

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