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Article
Publication date: 1 March 2011

Gina Vega, Collette Dumas, Beverly Kahn and Jafar Mana

David Hartstein started KaBloom in 1998 with the goal of creating “the Starbucks of Flowers.” He successfully built brand recognition for the gardenlike shops, but problems…

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Abstract

David Hartstein started KaBloom in 1998 with the goal of creating “the Starbucks of Flowers.” He successfully built brand recognition for the gardenlike shops, but problems plagued the young organization. Nearly three years and one recession later, KaBloom failed to live up to Hartsteinʼs forecast of exponential growth. This case has been designed for a graduate-level course in entrepreneurship/innovation. Students can compare franchising with other business models, examine the impact of organizational structure and leadership styles on business effectiveness, relate issues of supply chain management and logistics to environmental changes, and recognize the impact of innovation on business sustainability.

Details

New England Journal of Entrepreneurship, vol. 14 no. 1
Type: Research Article
ISSN: 2574-8904

Keywords

Open Access
Article
Publication date: 13 April 2022

Marcielle Anzilago and Ilse Maria Beuren

This study aims to analyze the effects of interorganizational cost management and opportunism on the reflexes of relational norms on satisfaction with interorganizational…

Abstract

Purpose

This study aims to analyze the effects of interorganizational cost management and opportunism on the reflexes of relational norms on satisfaction with interorganizational cooperation in franchised companies. The collective synergy arising from these relationships mainly seeks to increase competitiveness and commercial development. Windolph and Moeller observed that interorganizational cost management increases satisfaction in the relationship with partners, while relational norms attenuate the negative effect on supplier satisfaction.

Design/methodology/approach

A survey was carried out with managers of franchised companies in the food industry. The managers were identified on the social network Linkedin. After that, an invitation was sent to participate in the research. A total of 88 valid responses were obtained. The questionnaire consists of 40 extracted assertions. A pre-test was carried out to verify the comprehensibility of the wording of the assertions. Structural equation modeling with partial least squares (PLS-SEM) was used for data analysis. For analysis, validation and adequacy tests of the model were carried out, and executed in the software SmartPLS.

Findings

Survey results reveal that interorganizational cost management increases franchisor relationship satisfaction. Relational social norms mitigate the negative effect of opportunism on satisfaction with cooperation. And interorganizational cost management plays an important role in the relationship between relational norms and satisfaction with cooperation between franchisor and franchisees.

Research limitations/implications

However, limitations resulting from the methodological design of the research must be considered in the interpretation of the results, at the same time that they provide opportunities for new research. As for the methodological aspects, the study cannot be generalized to other branches of companies, because it is a sector with franchises with specific characteristics. It should also be considered that the study was limited to investigating the proposed model, but other constructs can be observed in the literature. Finally, to empirically assess the constructs of the theoretical model, research instruments from studies other than those considered here can be used.

Practical implications

This study contributes with relevant literature and the management practice of interorganizational cooperation by empirically demonstrating the importance of interorganizational cost management as a management control mechanism and to mitigate the effects of opportunism between franchisor and franchisees.

Social implications

It also contributes to the inclusion of social norms in the relationship between franchisor and franchisees with a view to increasing franchisee satisfaction with their franchisor, which also aims to mitigate the impacts of opportunism in this relationship. It contributes to the social order, as they reveal ways to mitigate possible conflicts between franchisor and franchisee and generate greater transparency in the relationship.

Originality/value

This study is justified by the fact that it investigates relational aspects of cooperation between franchisor and franchisees, a form of interorganizational cooperation that is growing in the market. It is also justified by highlighting the importance of interorganizational cost management as a means of mitigating the opportunistic effects between franchisor and franchisees, proving to be an important management mechanism. Research is especially important because interorganizational strategies have been spreading in corporate environments (Dekker, Ding & Groot, 2016) and the maintenance of the relationship is dependent on satisfaction with cooperation.

Details

RAUSP Management Journal, vol. 57 no. 3
Type: Research Article
ISSN: 2531-0488

Keywords

Open Access
Article
Publication date: 17 November 2020

Ilan Alon, Indri Dwi Apriliyanti and Massiel Carolina Henríquez Parodi

This paper aims to provide a bibliometric meta-analysis of the already substantial and growing literature on international franchising. Franchising is a model for businesses to…

28844

Abstract

Purpose

This paper aims to provide a bibliometric meta-analysis of the already substantial and growing literature on international franchising. Franchising is a model for businesses to achieve scale with limited resources. International franchising is a mode of entry that allows firms to develop new markets with relatively little risk but also little control.

Design/methodology/approach

Using a systematic approach, the paper identifies all articles in the ISI Web of Science from 1970 to 2018 that includes the term international franchising (in the title, the abstract or keywords) and finds 131 articles. This paper used HistCite software to analyze the bibliometric data.

Findings

Four major research clusters in the international franchising literature are identified. In addition, this study shows a change in research patterns regarding topics, theories and methodologies from the 1970s through 2018. The paper presents the most influential articles, authors and journals.

Originality/value

From the analyzes, this study develops a conceptual framework of international franchising and suggest avenues for future research.

Details

Multinational Business Review, vol. 29 no. 1
Type: Research Article
ISSN: 1525-383X

Keywords

Content available
Article
Publication date: 1 March 1998

Gad J. Selig

According to the Department of Commerce, start-up, small, and family businesses are among the fastest growing areas of employment. Even under the best economic environment…

1251

Abstract

According to the Department of Commerce, start-up, small, and family businesses are among the fastest growing areas of employment. Even under the best economic environment, starting a business is risky. To reduce the risks and to establish their own businesses, an increasing number of entrepreneurs and corporate converts are buying franchises.

Franchising has enjoyed a major increase in popularity during the early 1990s, fueled largely by the growing pool of available candidates made possible by significant corporate and government downsizing. According to the Department of Commerce, franchising accounts for nearly one-third of all U.S. retail sales and employs over 7 million people.

If an individual has the motivation, skills, capital, leadership, entrepreneurial spirit, and risk-taking attributes required to start and manage a business, franchising provides a structured alternative to accomplish this objective. Franchising encompasses both high risks and high rewards. While it is not for everyone, franchising represents a method to start and/or transition into your own business.

This refereed article describes the why, what, and how of franchising. It discusses the driving forces for franchising from both the franchiser's and franchisee's perspective, what it takes to be a franchisee, how to become an educated businessperson, what to do once you have selected a franchise, the do's and don'ts, the risks and rewards, and how to sell a franchise.

Details

New England Journal of Entrepreneurship, vol. 1 no. 1
Type: Research Article
ISSN: 2574-8904

Content available

Abstract

Details

Journal of Services Marketing, vol. 28 no. 6
Type: Research Article
ISSN: 0887-6045

Content available
Article
Publication date: 1 February 2005

Michael Mainelli and Ian Harris

125

Abstract

Details

Journal of Business Strategy, vol. 26 no. 1
Type: Research Article
ISSN: 0275-6668

Content available
Article
Publication date: 11 April 2008

271

Abstract

Details

Journal of Business & Industrial Marketing, vol. 23 no. 4
Type: Research Article
ISSN: 0885-8624

Content available
Article
Publication date: 6 May 2014

530

Abstract

Details

Journal of Services Marketing, vol. 28 no. 2
Type: Research Article
ISSN: 0887-6045

Content available

Abstract

Details

Journal of Services Marketing, vol. 28 no. 2
Type: Research Article
ISSN: 0887-6045

Content available
Article
Publication date: 1 March 2009

Matthew Eriksen and George H. Tompson

This case describes a real family that has been running a labor-intensive business since 1992. The father, Phil Mason, runs the business with the help of his wife and two of his…

1135

Abstract

This case describes a real family that has been running a labor-intensive business since 1992. The father, Phil Mason, runs the business with the help of his wife and two of his sons in southwestern Rhode Island. The business is a franchisee of ServiceMaster Clean. In 2006, the franchise employed 20 full-time employees and was the 50th largest ServiceMaster Clean franchise among the approximately 1,200 franchises located in the United States. Annual revenue is approximately $2.5 million. In late 2005, one of Phil℉s sons began researching the biodiesel industry. As he was growing weary of the labor-intensive nature of his franchise business, Phil fully researched the industry himself. By the middle of 2006, Phil was convinced that he could profitably manufacture biodiesel in his spare warehouse space. In July 2006, he formed Mason Biodiesel, LLC and financed the $1.5 million start-up costs through a combination of personal savings and bank debt.

Details

New England Journal of Entrepreneurship, vol. 12 no. 2
Type: Research Article
ISSN: 2574-8904

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