A Model of Organizational Antecedents to Franchise Revenues

Abstract

This study investigates antecedents to financial outcomes in franchised distribution channels. A model is developed which implicates authoritative and normative control as antecedents to franchise revenues. The model is tested with data from two hundred sixteen franchises in the Norwegian distribution system of a multinational oil refiner. The results indicate that authoritative control engenders normative control and control mechanisms are associated with franchise revenues. Implications for franchise management and channels research are outlined.