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MAKING NEW FRANCHISE SYSTEMS WORK
Scott A. Shane, Massachusetts Institute of Technology
AGENCY AND THEORY FRAMEWORK
As hybrid organizational forms become more prevalent in the world economy, more managers are faced with ensuring that these organizational forms succeed. This paper argues that new hybrid organizational arrangements are more likely to survive if they are structured to economize on agency costs. This paper shows empirical support for seven of eight hypotheses about the linkage between mechanisms for economizing on agency costs and the survival of new franchise systems.
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