Network Integration Through Franchised and Company‐Owned Chains: Evidence from French Distribution Networks

Abstract

To the best of our knowledge, no previous studies have examined the degree of vertical integration by comparing franchised and company‐owned chains. On the basis of recent data from the French distribution networks in retail and services, this paper investigates the determinants of network integration in the French distribution systems. The level of network integration increases from franchised chains to company‐owned chains. This paper provides evidence that the level of network integration is positively related to the brand name value and negatively related to the resource constraints and monitoring costs of the upstream firm. Copyright © 2012 John Wiley & Sons, Ltd.