Does the Theory of Networks Suite to Franchising? a Case Study of Neck and Neck

Abstract

La teoría de Redes es una alternativa para seleccionar franquiciados con el fin de formalizar una relación que se consolide con el tiempo. La empresa española de ropa infantil Neck Child, S. A. propietaria de la franquicia Neck & Neck ha reducido sus costes de información al disminuir la incertidumbre precontractual mediante la creación de redes egocéntricas en países donde se ha instalado, alcanzando menores costes en aquellos países donde las redes son más densas y con vínculos más fuertes.

Theory of Network is an tool in the choosing of franchisees for a given franchise system with a view to entering into a long-term operationally stable relationship. This paper studies the case Neck and Neck, one Spanish brand in the children´s fashion sector. This company has reduced her information costs because it has minimized the pre-contractual uncertainty by creating egocentric network, as master franchise or group of retail, in the countries where it is operating. When the networks are dense and the ties are strong, the reduction information costs are bigger.