CONDITIONING FACTORS TO CREATING A HORIZONTAL NETWORK WITH FRANCHISEES

Abstract

The objective of this article is to identify the conditioning factors to creating a horizontal network with franchisees for purchasing activities. This is a single case study, developed with a descriptive and qualitative approach, during the second half of 2013. Documents from 2011 to 2013 were researched, routines of operation were observed and three members of the network were interviewed. The main results indicate that franchising environment contributed to approximating the participants to the network, by prior knowledge and joint activities, reducing uncertainty and promoting greater trust. However, it raises the risks linked with increased trust, such as no provision of handling of disputes between participants and suppliers and member dropouts. It also limits the expansion of the network to shopping categories and entry of new partners. The environment is restricted to companies of the franchise and the primary materials are regulated by the franchisor, preventing gains with these factors.