The Structure of Ownership Rights in Franchising: An Incomplete Contracting View

The paper offers an explanation for the structure of ownership rights in franchising networks which emphasize the role of intangible assets. By applying the incomplete contracting theory of the firm we argue that the structure of ownership rights depends on the distribution of intangible assets between the franchisor and the franchisee. The higher the franchisor's (franchisee's) intangible assets relative to the franchisee (franchisor), the more ownership rights should be transferred to him. This hypothesis was tested by using data from the Austrian franchise sector. The empirical results are supportive of the hypothesis.     

A property rights view of multi-unit franchising

This study develops a property rights explanation of the multi-unit (MU) ownership strategy of the franchise firm. According to the property rights theory, the allocation of residual rights of control (decision and ownership rights) in franchise firms depends on the contractibility of system-specific and local market assets (LMA). We develop and test the following hypotheses: Multi-unit franchising (MUF) is positively related to the franchisor’s intangible system-specific assets and negatively to the franchisee’s intangible LMA. In addition, we argue that impact of financial assets on the tendency toward MUF depends on the contractibility of LMA. Empirical results from the German franchise sector provide partial support of the hypotheses. Compared to the agency theory, which focuses on (complete) incentive contracts that specify residual income rights between the franchisor and franchisee, property rights theory focuses on incomplete contracts that allocate residual control rights between the franchisor and network partners. Furthermore, compared to the resource scarcity theory, property rights theory explains the impact of contractibility of resources/assets on the ownership strategy of the franchise firm.     

Tinker, Tailor, Policy-maker ... ... ... The Wider Context of Prosecution Service Work

This article explores the wider ambit of prosecutorial work outside classic criminal proceedings in 11 European criminal justice systems. It provides an overview of the roles a prosecutor is expected to play, e.g. whether a contribution to national or local crime prevention policy or to act in victim’s interest is expected. It further provides detail as to the setting within which prosecutors work, describing in how far they are politically accountable and/or subject to orders in their daily work.     

Bank power in West Germany revised

This article examines the empirical and theoretical validity of the power of banks over industry in West Germany. An outline of the historical development, structure and institutions of credit in the Federal Republic is followed by discussion of the three alleged factors behind the banks' power: the functional linkage of bank and industrial capital; property rights and ‘personal influence’; the planning and economic guidance capacities of the banks. Finally, it is argued that the thesis of bank power in Germany, in the light of empirical evidence and theoretical reflection, should be somewhat more differentiated.     

Von Westfalen nach Kosmopolis? Die Problematik kultureller Identität in der europäischen Politik

?Westfälisch“ inspirierte Analysen des europäischen Integrationsprozesses behaupten, dass kulturelle Heterogenität die Bildung eines gemeinsamen politischen Willens der Europäer verhindert. Demgegenüber leitet sich für ?kosmopolitische Demokraten“ der normative Reiz der EU gerade aus der Notwendigkeit ab, eine politische Gemeinschaft neuen Typs zu konstituieren, die historisch erstmals tatsächlich rein ?zivile“ Wurzeln hat. In Abgrenzung zu diesen Positionen geht der folgende Beitrag davon aus, dass die Regulierung des kulturellen Pluralismus auf europäischer Ebene von den Widersprüchen gekennzeichnet ist, die der institutionellen Entwicklung der EU generell zugrunde liegen: Während das intergouvernementale Prinzip die Rolle der Nationalstaaten hervorhebt und dem Schutz der entsprechenden ?Nationalkulturen“ einen hohen Stellenwert beimisst, eröffnet der europäische Transnationalimus auf der anderen Seite jedoch auch Möglichkeiten für die Artikulation kultureller Identitäten unterhalb und jenseits der Nationalstaaten und trägt damit in gewissem Umfang zu einer ?enationalisierung“ politischer Kulturen bei. Am Beispiel der Sprachpolitik lässt sich diese Situation gut illustrieren. Im Schlussteil befasst sich der Beitrag mit dem Potenzial des Subsidiaritätsprinzips für ein ?reflexives Identitätsmanagement“ in der EU.     

Reviews

Rosalinde Sartorti, Pressefotografie und Industrialisierung in der Sowjetunion. Die Pravda 1925–33. Berlin and Wiesbaden: Otto Harrassowitz. 1981. 339 pp. 58 DM.

P. G. Hare, H. K. Radice and N. Swain (eds.), Hungary: A Decade of Economic Reform. London: George Allen & Unwin, 1981. xiv+257 pp. £15.00.

Philip Hanson, Trade and Technology in Soviet‐ Western Relations. London and Basingstoke: The Macmillan Press Ltd., 1981. xiv + 271 pp. £20.

Peter Wiles (ed.), The New Communist Third World. London and Canberra: Croom Helm, 1982. 392 pp. £15.95.

Arthur J. Klinghoffer: The Angolan War: a study in Soviet policy in the Third World. Colorado: Westview Press Inc., 1980. viii + 229 pp. $22.50.

Morris Rothenberg: The USSR and Africa: new dimensions of Soviet global power. Washington: Advanced International Studies Institute, 1980. viii + 280 pp. $8.95 and $ 12.95.

Seweryn Bialer (ed.), The Domestic Context of Soviet Foreign Policy. Studies of the Research Institute on International Change, Columbia University. Boulder, Colorado: Westview Press/London: Croom Helm, 1981. xviii + 441 pp. £14.95.

Igor Birman, Secret incomes of the Soviet state budget. The Hague: Martinus Nijhoff, 1981. 313 pp. DFL. 180.00, US $78.50.

James R. Millar, The ABCs of Soviet Socialism. University of Illinois Press, 1981. xvi + 215 pp. £8.72 paperback.

Adam B. Ulam, Russia's Failed Revolutions: from the Decembrists to the Dissidents. London: Weidenfeld & Nicolson, 1981. vii + 453 pp. £10.00.

Richard B. Day, The ‘Crisis’ and the ‘Crash’: Soviet Studies of the West, (1917–1939). London: NLB, 1981. x + 300 pp. £9.50.

Bogdan Szajkowski (ed.), Marxist Governments: A World Survey, 3 vols. London: Macmillan, 1981. xix + 822 pp. £20 per volume, £50 the set.

Thomas Remeikis, Opposition to Soviet Rule in Lithuania 1945–1980. Chicago: Institute of Lithuanian Studies Press, 1980. 680 pp. $15.00.