Franchisor resources, spousal resources, entrepreneurial orientation, and performance in a couple-owned franchise outlet

Abstract

Purpose

Franchise outlets owned by entrepreneurial married couples are gradually increasing. Based upon prior research in resource-based view, entrepreneurial orientation (EO), franchising, and family business, the purpose of this paper is to analyze franchisor resources, spousal resources, and EO are critical to the development of franchisees’ performance.

Design/methodology/approach

–The author conducted a survey of 99 franchisees in couple-owned convenience store franchise outlets in Taiwan using the partial least squares technique.

Findings

It was found that franchisor resources, spousal resources, and EO directly affect franchisee performance. In addition, franchisor resources also have an indirect effect on performance through EO, but spousal resources do not have an indirect effect.

Practical implications

The franchisor should pay attention to the development of their resources and a franchisee's EO and the interaction between the franchisee and the spouse. Furthermore, a franchisee's EO facilitates the manipulation of the franchisor's resources.

Originality/value

This study highlights the possession of franchisor and spousal resources, and the importance of EO to foster and develop the franchisee performance in a couple-owned franchise outlet. These findings also suggest that franchisor resources have indirect effect on performance through EO.

Citation

Chien, S.-Y. (2014), "Franchisor resources, spousal resources, entrepreneurial orientation, and performance in a couple-owned franchise outlet", Management Decision, Vol. 52 No. 5, pp. 916-933. https://doi.org/10.1108/MD-07-2013-0368