THE INFLUENCE OF NETWORK DESIGN ON FIRM PERFORMANCE – PERSPECTIVES AND EMPIRICAL EVIDENCE Inauguraldissertation zur Erlangung des akademischen Grades eines Doktors der Wirtschaftswissenschaften durch die Wirtschaftswissenschaftliche Fakultät der Westfälischen Wilhelms-Universität Münster WESTFÄLISCHE WILHELMS-UNIVERSITÄT MÜNSTER vorgelegt von BRINJA MEISEBERG aus Bottrop Münster, 2010 Erster Berichterstatter: Prof. Dr. Thomas Ehrmann Zweite Berichterstatterin: Prof. Dr. Anja Tuschke Dekan: Prof. Dr. Stefan Klein Tag der mündlichen Prüfung: 12. April 2010 Acknowledgements The process of writing this dissertation was accompanied by a number of people to whom I would like to express my gratitude for their support. I am sincerely indebted to my dissertation advisor, Prof. Dr. Thomas Ehrmann, Institute of Stra- tegic Management at Münster University, for his guidance and promotion of my research efforts, and for providing extensive expertise and creative commentary whenever needed. I am also in- debted for his continuous trust in taking me on as a research assistant. I thank Prof. Dr. Anja Tuschke, Ludwig Maximilian University of Munich, for her co-supervisory of my dissertation. I extend my thanks to Prof. Dr. Martin Bohl and Prof. Dr. Gerhard Schewe, both of Münster University, for accepting the responsibility to join the dissertation committee. Finally, I thank Dr. Hendrik Schmale, Sandra Stevermüer and Alfred Koch for being great friends and colleagues. I am deeply grateful to Dagmar and Rolf Meiseberg for promoting and challenging critical thinking in any endeavours, and for being a constant source of love, concern, support and strength, all these years. I thank Prof. Dr. Frank Ückert for supporting me every step of the way. TABLE OF CONTENTS TABLE OF CONTENTS .................................................................................................. IV LIST OF FIGURES ......................................................................................................... VII LIST OF TABLES ........................................................................................................... VII PART A I. THE NETWORK FORM OF ORGANISATION .................................................................... 1 II. CONCEPTUAL APPROACH AND CONTRIBUTION TO THE LITERATURE ......................... 4 1. Theoretical Background ........................................................................................... 4 2. Research Approach and Contribution .................................................................... 12 III. SUMMARY OF CHAPTERS – PERSPECTIVES AND EMPIRICAL EVIDENCE .................... 22 1. Selection of Network Participants: Social Capital Transfer and Performance in Franchising ...................................... 22 2. Configuration of Network Participants: The Impact of Communicative Efficiency on Franchisee Performance ................ 26 3. Network Expansion: Inner Strength against Competitive Forces – Successful Site Selection for Franchise Network Expansion ............................................................................... 29 4. Network Internationalisation: Opposites Attract – Effects of Diverse Cultural References and Industry Network Resources on Film Performance ............................................................. 32 5. Feedback from External Networks on Firm Performance: Superstar Effects in Deluxe Gastronomy – The Impact of Performance Quality and Consumer Networks on Value Creation ......................................................... 35 IV. INTEGRATIVE FRAMEWORK......................................................................................... 38 V. REFERENCES ................................................................................................................. 40 PART B I. SOCIAL CAPITAL TRANSFER AND PERFORMANCE IN FRANCHISING .......................... 56 1. Abstract .................................................................................................................. 56 2. Introduction ............................................................................................................ 57 3. Theoretical Background and Hypotheses .............................................................. 60 4. Sample, Variables, and Methods ........................................................................... 66 Table of Contents V 4.1 Sample ........................................................................................................... 66 4.2 Dependent Variables ..................................................................................... 67 4.3 Independent and Control Variables .............................................................. 69 4.4 Methods ......................................................................................................... 71 5. Results .................................................................................................................... 74 6. Limitations and Discussion .................................................................................... 77 6.1 Research Limitations .................................................................................... 77 6.2 Discussion ..................................................................................................... 77 7. References .............................................................................................................. 81 II. THE IMPACT OF COMMUNICATIVE EFFICIENCY ON FRANCHISEE PERFORMANCE ....................................................................................... 95 1. Abstract .................................................................................................................. 95 2. Introduction ............................................................................................................ 96 3. Theoretical Background ......................................................................................... 99 4. Hypotheses ........................................................................................................... 103 5. Sample, Variables, and Methods ......................................................................... 109 5.1 Sample ......................................................................................................... 109 5.2 Dependent Variables ................................................................................... 110 5.3 Independent and Control Variables ............................................................ 111 5.4 Methods ....................................................................................................... 112 6. Results .................................................................................................................. 115 7. Limitations and Discussion .................................................................................. 121 7.1 Research Limitations .................................................................................. 121 7.2 Discussion ................................................................................................... 121 8. References ............................................................................................................ 125 III. INNER STRENGTH AGAINST COMPETITIVE FORCES – SUCCESSFUL SITE SELECTION FOR FRANCHISE NETWORK EXPANSION .................. 134 1. Abstract ................................................................................................................ 134 2. Introduction .......................................................................................................... 135 3. Theoretical Background ....................................................................................... 138 4. Hypotheses ........................................................................................................... 143 4.1 Market Perspective Criteria ........................................................................ 143 4.2 Inner Strength Perspective Criteria ............................................................. 143 5. Sample, Variables, and Methods ......................................................................... 148 5.1 Sample ......................................................................................................... 148 5.2 Dependent Variables ................................................................................... 149 5.3 Independent and Control Variables ............................................................ 150 5.4 Methods ....................................................................................................... 152 6. Results .................................................................................................................. 154 7. Discussion ............................................................................................................ 159 8. References ............................................................................................................ 163 Table of Contents VI IV. OPPOSITES ATTRACT – EFFECTS OF DIVERSE CULTURAL REFERENCES AND INDUSTRY NETWORK RESOURCES ON FILM PERFORMANCE ............................ 173 1. Abstract ................................................................................................................ 173 2. Introduction .......................................................................................................... 174 3. Theoretical Background ......................................................................................