Power Asymmetry in Franchising
In: Moscow University Economics Bulletin, Band 2017, Heft 6, S. 168-182
The degree of asymmetry of power is one of the key factors affecting the relationship between the franchisor and the franchisee. The development of strategies for building relations should correspond to the legitimacy of the measures taken, as well as the costs of harmonization that arise in connection with a decrease in the adequacy of power relations between the subjects of relations. This article reveals the main factors that determine the legitimacy of power asymmetry, the consequences of not legitimate requirements described, as well as the costs of choosing different strategies on the part of the franchisor. The purpose of this article is to prove the inevitability of the emergence of power asymmetry in the relationship between the franchisor and the franchisee, as well as a theoretical description of the influence of asymmetry on their relationships. The results of the article can be used by franchisors in formulating strategies for building relationships with franchisees.