Effects of franchising on industry competition: The moderating role of the hospitality industry

Kyung A. Sun, Seoki Lee

Research output: Contribution to journalArticlepeer-review

8 Scopus citations

Abstract

This study investigates the impact of an industry's involvement in franchising on its competitive condition. Findings show that, for services industries in general, franchising involvement (a) discourages industry instability and dynamic competition, and (b) has a non-significant impact on industry concentration. However, in the hospitality industry, the negative effects of franchising on industry instability and dynamic competition are weaker: franchising decreases industry instability and dynamic competition less in the hospitality industry than in other services industries. These findings open up a new discussion of how franchising influences the competitive environment at the industry level.

Original languageEnglish (US)
Pages (from-to)80-88
Number of pages9
JournalInternational Journal of Hospitality Management
Volume68
DOIs
StatePublished - Jan 2018

All Science Journal Classification (ASJC) codes

  • Tourism, Leisure and Hospitality Management
  • Strategy and Management

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