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

Authors

  • Magali Chaudey,

    Corresponding author
    1. CNRS, GATE Lyon - Saint-Etienne, UMR n° 5824, Ecully, France
    2. Université de Saint-Etienne, Jean Monnet, Saint-Etienne, France
    • Université de Lyon, Lyon, France
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  • Muriel Fadairo,

    1. Université de Lyon, Lyon, France
    2. CNRS, GATE Lyon - Saint-Etienne, UMR n° 5824, Ecully, France
    3. Université de Saint-Etienne, Jean Monnet, Saint-Etienne, France
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  • Gwennaël Solard

    1. INSEE, Paris cedex 14, Paris, France
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    • G. Solard was in charge of economic studies in the department devoted to retailing within the French National Institute of Statistics and Economic Studies (INSEE) when the paper was written. The views expressed in this paper are those of the authors and do not involve the INSEE.


Correspondence to: Université de Saint-Etienne, Jean Monnet, F-42023 Saint-Etienne, France. E-mail: chaudey@univ-st-etienne.fr

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.

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