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- W2273380868 abstract "Economies of scale in branding, operation, and learning seemingly foster large chains’ competitive dominance. Anecdotal evidence and a few studies, however, find that large chains do not necessarily outgrow and outperform small ones. We reconcile these anomalies by applying the notion of external fit to chain organizations of different sizes. Specifically, we posit that relative to small chains, large chains perform better in markets where customer preferences are similar but perform worse in idiosyncratic, local markets since large chains are less able to adapt operations across geography. Using a sample of restaurant chains in the San Francisco Bay Area, we find that establishments affiliated with larger chains survive better in markets frequented by transient customers, whereas establishments in smaller restaurant chains endure longer in markets where local customers are the more likely patrons. Our results thus demonstrate the importance of optimizing the external fit between organizational strategy and environmental resources." @default.
- W2273380868 created "2016-06-24" @default.
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- W2273380868 date "2015-01-01" @default.
- W2273380868 modified "2023-09-27" @default.
- W2273380868 title "The Role of Chain Size and Customer Type on Survival: Evidence from Multi-Unit Restaurants" @default.
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- W2273380868 doi "https://doi.org/10.2139/ssrn.2684210" @default.
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