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1 – 10 of over 1000As franchisees are perceived to be independent and self employed entrepreneurs, their ongoing development is frequently overlooked or poorly managed; particularly compared with…
Abstract
As franchisees are perceived to be independent and self employed entrepreneurs, their ongoing development is frequently overlooked or poorly managed; particularly compared with the development opportunities for corporate staff in their support offices. The concern is that franchisees do not prioritise their own professional development due to their inability to diagnose and source appropriate training, their focus on immediate operational needs and a lack of free time to undergo development activities. As primary income generators of franchise businesses; organisational effectiveness and growth of the entire organisation rests on the abilities of the franchisees. This article examines one training program offered to franchisees at a major Australian franchise organisation. Through a survey of franchisees, some important lessons have been learned regarding the nature, scope and design of development initiatives for franchisees and some recommendations are provided to better manage franchisee development for the benefit of the entire organisation.
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Levent Altinay, Maureen Brookes, Ruth Yeung and Gurhan Aktas
– This paper aims to evaluate the antecedents of franchise relationship development from the perspective of a sample of Chinese and Turkish franchisees.
Abstract
Purpose
This paper aims to evaluate the antecedents of franchise relationship development from the perspective of a sample of Chinese and Turkish franchisees.
Design/methodology/approach
This study explores relationship development through semi-structured interviews with Chinese and Turkish franchisees.
Findings
The findings of the study demonstrated that both the culturally adapted role performance of franchisors and communication geared towards knowledge transfer contribute to relationship development with franchisees.
Research limitations/implications
This exploratory study evaluated the influence of role performance and communication as factors influencing relationship development. Further research could explore other factors in other countries and industries.
Practical implications
To build and develop long-term relationships with franchisees, franchisors need to invest in continuously improving their franchise infrastructures and enhancing their brand reputations. Communication and knowledge transfer between the franchisors and the franchisees are crucial for the management of dynamic relationships.
Originality/value
This paper advances franchising literature by offering a combined and complementary theoretical perspective to our understanding of the influence of power and social investments in relationship development between franchisees and franchisors. In particular, the study identifies role performance of franchisor and communication with franchisees as the key antecedents of relationship development.
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Levent Altinay and Maureen Brookes
This paper aims to identify and evaluate the factors which influence relationship development between franchisors and franchisees in international service franchise partnerships.
Abstract
Purpose
This paper aims to identify and evaluate the factors which influence relationship development between franchisors and franchisees in international service franchise partnerships.
Design/methodology/approach
Case studies of two international hotel firms were the focus of the enquiry. Interviews and document analysis were used as the data collection techniques.
Findings
Findings demonstrate that role performance, asset specificity and cultural sensitivity influence relationship development in franchise partnerships. The influence of these factors, however, varies in different forms of franchise partnerships, namely individual and master franchises.
Research limitations/implications
The findings are based on case studies in the international hotel industry and therefore may not be generalizable to other industry sectors.
Practical implications
Service firms should adopt a systematic organization‐wide approach to, and management of, relationship development in franchise partnerships. In particular, in the case of cross‐country partnerships, both franchisors and franchisees need to develop and exploit their inter‐cultural skills and adapt their business practices to the cultures of host and home countries where appropriate.
Originality/value
The paper exploits three main streams of research which could inform the antecedents of business‐to‐business relationships, namely power‐dependence, transaction cost theories and international business. It thus advances services marketing and more specifically international franchising literatures by offering a holistic theoretical perspective to our understanding of business‐to‐business relationship development.
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Gowsia Bashir and Natasha Saqib
This study aims to examine franchising from an entrepreneurial perspective. The study investigates the extent to which franchisees exhibit entrepreneurial characteristics and…
Abstract
Purpose
This study aims to examine franchising from an entrepreneurial perspective. The study investigates the extent to which franchisees exhibit entrepreneurial characteristics and various aspects of franchise development.
Design/methodology/approach
The questionnaire was distributed to 430 franchisees operating in India and 409 responses were received. Descriptive and inferential statistics, such as correlation, analysis of variance and structural equation modeling were used to analyze the data.
Findings
The study’s findings indicate that franchisees also exhibit entrepreneurial characteristics and behavior. Additionally, as evidenced by their franchisee selection process, franchisors appear to value entrepreneurial personalities within their franchised outlets.
Research limitations/implications
By generating sufficient business enterprises, the franchising system of entrepreneurship can be promoted as one of the solutions for developing countries. Additionally, the findings of this study suggest research implications for elucidating the entrepreneurial position of franchisees.
Originality/value
Considerable ambiguity exists when franchisees’ activities of operating and managing their outlets are considered entrepreneurial firms. The purpose of this study is to examine the role of franchising in the development of entrepreneurship. It provides empirical evidence for the extent of franchisees’ entrepreneurial tendencies and elaborates on key arguments in the franchising and entrepreneurship kinds of literature.
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Rozenn Perrigot, Guy Basset and Gérard Cliquet
The purpose of this paper is to highlight the various means of communication available to franchisors in attracting prospective franchisees more effectively than their…
Abstract
Purpose
The purpose of this paper is to highlight the various means of communication available to franchisors in attracting prospective franchisees more effectively than their competitors. In addition, it explores the potential use of Web 2.0 resources by franchisors.
Design/methodology/approach
The simultaneous use of various means of communication by franchisors is examined through a case study. The authors have chosen one of the largest franchised chains in the world, which is in the process of expanding its chain of restaurants in many countries, with France being heavily targeted: Subway.
Findings
This case study reveals the complementarities of push communication, pull communication, and communication relayed by influencers, along with the development of new means of communication through the use of Web 2.0 tools (Facebook, LinkedIn, YouTube, etc.).
Research limitations/implications
This paper contributes to the stream of franchising and hospitality management literature. The limitations encountered stem mainly from the case study methodology.
Practical implications
The implications of this research for franchisors relate primarily to the means of communication used in order to appear more attractive in the eyes of potential franchisees. This paper also provides prospective franchisees with a list of sources available to collect useful information in selecting the best‐suited franchised chain to join.
Originality/value
Few papers have assessed the way new franchisees are attracted from a franchisor's perspective. The study of franchisor communication strategy and franchisor use of Web 2.0 resources to bring in new franchisees is indeed original, in comparison with the existing literature.
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Robert Dahlstrom and Arne Nygaard
A substantial body of research employs agency theory and transaction costs analysis to explain ownership decisions in distribution channels. Agency theory identifies factors that…
Abstract
A substantial body of research employs agency theory and transaction costs analysis to explain ownership decisions in distribution channels. Agency theory identifies factors that prompt firms to favor behavior‐based contracting over outcome‐based agreements. Transaction cost economics is a complementary framework which maintains that the organizational form in a location should be the one that economizes on production and transaction costs. Prior research illustrates that independent variables (e.g. proximity to highways, dedicated assets) outlined in these theories provide a partial explanation for ownership decisions. Nevertheless, scant research has analyzed whether factors outlined in agency theory and transaction cost analysis are employed by executives when making ownership decisions. The purpose of this study is to investigate managerial rationales underlying plural contractual networks.
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Theeranuch Luangsuvimol and Brian H. Kleiner
States that franchising has grown into a dynamic and mature business activity, with varying types of public recognition. Looks at what types of franchise are available and gives…
Abstract
States that franchising has grown into a dynamic and mature business activity, with varying types of public recognition. Looks at what types of franchise are available and gives eight arguments to advance prospective franchisees in their decision. Sums up that there are two key aspects in the franchise management: which are keep the good relationship between franchisor and franchisee; and managing day‐to‐day franchise operations successfully.
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Scott Weaven, Debra Grace, Rajiv Dant and James R. Brown
The purpose of this paper is to present an integrative systems model of knowledge management (KM) across the franchisor-franchisee-customer triad. The conceptual development of…
Abstract
Purpose
The purpose of this paper is to present an integrative systems model of knowledge management (KM) across the franchisor-franchisee-customer triad. The conceptual development of this paper focuses on the areas of knowledge development, knowledge transfer and knowledge use within the context of dyadic monitoring, and key relational outcomes (partner congruence, relationship quality, perceived conflict, opportunism), and performance results (franchisor, franchisee and customer welfare).
Design/methodology/approach
This paper critically reviews the relevant literatures in order to address three conceptual goals exemplified by the following research questions. How does knowledge development and organizational learning effectively facilitate knowledge transfer and knowledge usage in franchise systems? What role does monitoring play in the relationship between the knowledge management processes and the welfare of franchisors and franchisees? How does the process of knowledge management (development, synthesis, transfer, usage) influence franchisor, franchisee and customer welfare?
Findings
An extensive review of the literature results in ten key research propositions being offered and these are graphically presented in the conceptual model in Figure 1. This model represents a multi-level perspective of KM which provides a solid platform for future empirical studies and further academic discussion.
Originality/value
This paper makes two key contributions. First, through adopting an integrative KM perspective it draws attention to many (as yet) unanswered questions concerning the franchise relationship. Second, it re-positions KM research beyond consideration at a singular (firm, employee, supplier or customer) level by focusing on intra-firm and firm-customer linkages in the value creation process.
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Anne Marie Doherty and Nicholas Alexander
As international retailers continue to employ franchising as a major method of market entry, the control of these international retail franchise networks becomes of significant…
Abstract
Purpose
As international retailers continue to employ franchising as a major method of market entry, the control of these international retail franchise networks becomes of significant importance. The aim of this paper is to examine the methods by which UK‐based international fashion franchisors control franchisees and their international franchise businesses.
Design/methodology/approach
The paper employs a qualitative methodology and a multiple case design. Six UK‐based fashion retailers with international franchise operations form the empirical basis of the study.
Findings
The franchise contract, support mechanisms, franchise partner selection, the franchise relationship and the use of master/area franchising were found to be the major methods by which international retail franchisors exert control over their franchise networks. While coercive and non‐coercive sources of power were identified in the form of the franchise contract and support mechanisms, the paper also identifies sources of relationship power and organisational power.
Practical implications
The paper provides practical information to existing international franchisors and those firms considering the move into the international marketplace via the franchise mode of operation. By highlighting additional sources of power in the form of organisational and relationship power, franchisors are offered further means by which to control their international businesses than hitherto identified in the international franchise literature.
Originality/value
Traditional franchise research suggests that there is a dichotomy in the sources of power available to franchisors, that is, coercive or non‐coercive sources of power. While acknowledging the existence and importance of these sources of power and their related methods of control, this paper adds further dimensions to the academic debate by introducing relationship power and organisational power. Therefore, franchise partner selection, the franchise relationship and the use of master/area franchising emerge from the qualitative findings as further control mechanisms available to international retail franchisors.
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A major gap in the international marketing literature is the nature of the international franchise relationship and, in particular, the mechanisms used to control and co‐ordinate…
Abstract
A major gap in the international marketing literature is the nature of the international franchise relationship and, in particular, the mechanisms used to control and co‐ordinate the international franchise network. Discusses the findings arising from an ethnographic study of the internationalisation activity of one franchise company. Explores how the company in question attempted to control and direct its international franchise network. Illustrates the importance of non‐coercive sources of power, or the support function, in controlling international franchisee behaviour. Furthermore, it describes the development of the support function within the company over a longitudinal time period and highlights the impact of various organisational factors on the company’s ability to provide effective support to its international franchisees.
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