Organizations and Markets

Maybe Sociology Is Worth Something After All

26 March 2008 at 4:26 pm Peter G. Klein 1 comment

| Peter Klein |

This passage from yesterday’s WSJ front-pager on Sheraton’s attempt to upgrade its image should delight Brayden and the Boys:

[Sheraton’s Hoyt] Harper, whose father was a psychologist, says he takes an inclusive approach to negotiating with [franchisees]. Instead of issuing blanket instructions, he has brought in major Sheraton owners, such as Host, early on in the design process to get their input and help tweak the final plan. This means that Starwood must endure a lot of criticism from its hotel owners and that the owners must endure criticism from Starwood. “My sociology major was much more appropriate for this job than my business degree,” he says.

On a more serious note, the article contains interesting general information about the hotel industry and the dominant franchise model. It should have mentioned Francine Lafontaine’s work on franchising, particularly this recent paper (with Renata Kosova and Rozenn Perrigot) on the hotel industry and a chain’s choice to own or franchise particular units.

Entry filed under: - Klein -, Theory of the Firm.