The choice of control devices in franchise chains

This article provides evidence on the determinants of the intensity in the use of three control types employed in franchise relationships: outcome-, behavior- and social-based control systems. This is accomplished by the integration and testing of two approaches, the agency and organizational theories. The results support the predictions of both theories for control strategies in franchise chains, and so it appears that the agency and organizational views are complementary in the field studied. The findings also show the existence of substitutabilities between the control types studied, and so such control types constitute a system of interdependent elements.