4. Issues of power, governance and decision-making
4.1 Asymmetrical domination in outsourcing networks
In outsourcing strategies, the whole issue of control is linked to the valuation of the shared intangible assets associated with the network's brand image and efficiency, and to its durability. The network head company is in a position of domination to impose the rules of the game on the other members.
In a hotel franchise network, a member may behave opportunistically and cheat on quality standards (for example, by limiting cleaning costs). If a customer notices this, he or she will leave with an unfavorable image for the entire network, which will be detrimental to all members.
The contract provides for the possibility of non-renewal...
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Issues of power, governance and decision-making
Specific features of management control
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