engleski

Franchising as a Hybrid Organizational Form: Answers to Sales and Distribution Growth

Hybrid organizational forms are of great interest to researchers worldwide. In recent years they have been the subject of many articles examining the types and reasons why organizations use hybrid organizational forms. Some researchers even mention the term hybrid movement when describing the status of research and the use of hybrid organizational forms. This term is used to describe the combination of elements that are usually perceived as separate (Schmitz and Glanzel, 2016). Sometimes, it is hard to define a company’s borders since the key decisions regarding sales and distribution cannot be made at one location. On the other hand, these key decisions regarding sales and distribution can increase agency expenses. Thus, companies tend to use franchising as a hybrid organizational form for lowering their expenses related to growing sales and distribution, overcoming at the same time potential agency problems. Franchising and its conditions can present risks to both parties involved, i.e., the franchisor and franchisees, but under certain conditions, these risks can be lowered as well. The chapter analyzes the reasons why Croatian and Polish companies use franchising for increasing their sales and distribution. Examples from both countries will show why the selected companies decided to use franchising over other sales and distribution growth strategies.

hybrid organization, franchising, franchisor, franchisees

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