Risk-sharing as a long-term motivation to franchise: Role of franchising experience

Kyung A. Sun, Seoki Lee

Research output: Contribution to journalArticlepeer-review

11 Scopus citations


This study aimed to examine a long-term motivation for franchising by considering the influence of experience franchisors gain through conducting the franchising strategy. The study mainly investigates the moderating effect of franchising experience on the relationship between three main motivations for franchising (derived from agency theory, resource scarcity theory, and risk-sharing theory) and firms’ degree of franchising in the restaurant context. Dynamic panel data model was employed and the findings suggest that not only do restaurant companies’ franchising experience positively affect firms’ degree of franchising, but also that those experiences positively moderate the relationship between risk-sharing motivation and the degree of franchising. The findings lead to theoretical and practical implications and suggestions for future research.

Original languageEnglish (US)
Pages (from-to)20-32
Number of pages13
JournalJournal of Hospitality Financial Management
Issue number1
StatePublished - 2016

All Science Journal Classification (ASJC) codes

  • Finance
  • Tourism, Leisure and Hospitality Management
  • Strategy and Management


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