Strategic Alliances and the Evolution of Retail Franchisees

This study examines how the widespread use of co-branding through strategic alliances affects role ambiguity among retailers. The prevailing logic suggests that vertical control limits uncertainty, yet this is not consistently supported. We investigate the ability of vertical control mechanisms to curtail role ambiguity among franchisee entrepreneurs. The model predicts that the stage of an alliance influences the level of vertical control and ambiguity and the effect of control on role ambiguity. Data collected over a four-year period offer evidence that the influence of vertical control mechanisms on franchisee role ambiguity varies predictably over the course of the alliance