An application of integration theory to foodservice franchising determinants

Abstract

The purpose of this study is to advance a franchising theory: 1) in order to identify which determinants are influential to explain foodservice franchising by testing the potential determinants from the perspectives of resource scarcity, agency, transaction costs, and signaling, and 2) to evaluate which perspective is appropriate to support each of these influential determinants of foodservice franchising. This study utilized ordinary least-square regression to develop econometric research. So, this study finds key influential determinants in terms of their magnitude and indicates no existence of dominant perspective. In addition, this study employed an integration theory contributes to the theoretical underpinnings of foodservice franchising by presenting new insights that can help foodservice franchising firms to capitalize their franchising investment when they consider their franchise systems. ? Serials Publications Pvt. Ltd.