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Revisiting the contingency theory: dissection of entrepreneurial orientation elements in retail franchisee performance

Samantha Naidu (School of Business and Management, The University of the South Pacific, Suva, Fiji)
Gurmeet Singh (School of Business and Management, The University of the South Pacific, Suva, Fiji)
Jashwini Narayan (School of Business and Management, The University of the South Pacific, Suva, Fiji)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 13 July 2021

Issue publication date: 14 November 2023

426

Abstract

Purpose

This study aims to analyze how various contingencies within the contingency theory influence the entrepreneurial orientation (EO) elements and performance of retail franchisees in a South Pacific Island nation.

Design/methodology/approach

This study employs a quantitative approach of data collection from 203 managers in a total of 89 retail franchise outlets. Convenience and snowball sampling techniques were used with data analysis through SPSS AMOS and covariance-based structural equation modelling (CB-SEM).

Findings

The results confirmed that technology, innovation and promotion; competitive edge and value co-creation; high return opportunity capitalization; and empowerment and support influenced franchisee performance, while responsive customer focused leadership and competitor knowledge proved to be insignificant. The findings supported EO's influence on both financial and non-financial indicators, with greater influence on financial indicators. The result revealed that EO accounts for partial impact on franchisee performance, while the remaining impact could be attributed to organization and environment contingencies.

Originality/value

The study proposes a novel context of EO in franchising, where we dissect key elements within the EO dimensions. It also adds to the extant literature on how the broader context of environmental and organizational factors termed as “strategic fit” affects entrepreneurial franchisee performance.

Keywords

Acknowledgements

Declaration of interest: none.

Citation

Naidu, S., Singh, G. and Narayan, J. (2023), "Revisiting the contingency theory: dissection of entrepreneurial orientation elements in retail franchisee performance", International Journal of Emerging Markets, Vol. 18 No. 9, pp. 2343-2362. https://doi.org/10.1108/IJOEM-03-2021-0467

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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