Strategic agility explanations for managing franchising expansion during economic cycles

Abstract

Purpose

This paper aims to demonstrate how franchising firms can manage system expansion by weathering the economic effects of a location (i.e. country-level economic cycles) by shifting their resources.

Design/methodology/approach

The authors use a comprehensive database of 151 US hybrid franchising organizations, including observations for the years between 2001 and 2008. Data analysis is conducted with count model panel data with a Poisson distribution.

Findings

The model reveals a curvilinear U-shaped relationship between location (i.e. economic cycles) and franchising expansion.

Originality/value

This study contributes to competitiveness literature by showing how franchising firms respond to changing local conditions.

Citation

Alon, I., Madanoglu, M. and Shoham, A. (2017), "Strategic agility explanations for managing franchising expansion during economic cycles", Competitiveness Review, Vol. 27 No. 2, pp. 113-131. https://doi.org/10.1108/CR-04-2016-0022