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Article
Publication date: 17 August 2015

William J. Ritchie, George Young, Ali M. Shahzad, Robert W. Kolodinsky and Steven A. Melnyk

The purpose of this paper is to explore product adoption beliefs and actions of a large retail food organization with both corporate-owned stores and privately held…

Abstract

Purpose

The purpose of this paper is to explore product adoption beliefs and actions of a large retail food organization with both corporate-owned stores and privately held franchise stores.

Design/methodology/approach

The authors used a case study approach involving survey data collection from 190 corporate-owned and licensed retail outlets that were members of a large, single organization. Ordinary least squares regression and mean differences (t-tests) were used to test the data. Findings were elaborated upon based upon structured interviews.

Findings

Corporate-owned retail outlets invested heavily in food safety innovation, while franchised retail outlets pursued minimal investment to retain product flexibility. The level of adoption is contingent upon ownership structure, as well as institutional forces emanating from the corporate environment, the customer, and peer organizations.

Research limitations/implications

The findings offer greater insight into methodological issues associated with measurement of new product adoption in particular. The authors have shown that it is critical for researchers to clarify the level of analysis of the study. Quantitative survey analysis revealed both safety and economic motivations to be desirable issues in product adoption considerations. However, when quantitative and qualitative results were combined, very different outcomes were realized as ownership structure differences appear to dominate product adoption decisions. Therefore, when conducting plural organizational form research, the data gathering efforts must be carefully undertaken to ensure that critical drivers of phenomena explored are not overlooked.

Practical implications

Adoption of new product adoption involves the complex interplay between ownership structure/control, economic cost/benefit, managerial choice, and societal norms. Often, organizational research relating to adoption of new processes and innovations collects individual-level data. However, this study shows that adoption decisions occur at multiple levels and that the ownership/structural context must be considered.

Social implications

The study has implications from social innovation/responsibility perspectives. Recent press regarding food safety has put pressure on food processing establishments to consider methods of reducing food safety breaches. No doubt, this has alerted the consumer to potential risks in food processing and influenced their preferences in favor of food safety innovations. Nonetheless, perceptions of the importance of “safety” can be interpreted in a variety of ways, leading to differing courses of action. Interviews with corporate-level executives revealed that they preferred both corporate-owned and franchised retail outlets adopt case ready (CR) meats to stem safety concerns. Yet, this aspiration diffused throughout the organization differently.

Originality/value

Multiple organizational structure forms operating within the same organizational entity, or “plural form” organizations, offer unique opportunities for examination. Applying various theoretical lenses, including agency theory, the resource-based theory, and institutional theory, the authors offer rationale for why different structural types within the same corporate entity may differ in their beliefs and actions concerning product safety, cost, and adoption.

Details

Management Decision, vol. 53 no. 7
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 8 July 2014

Isabelle Piot-Lepetit, Rozenn Perrigot and Gérard Cliquet

The purpose of this paper is to develop a new model allowing the implementation of a benchmarking process that jointly measure the efficiency of franchise chains and…

Abstract

Purpose

The purpose of this paper is to develop a new model allowing the implementation of a benchmarking process that jointly measure the efficiency of franchise chains and determine their optimal organizational form.

Design/methodology/approach

The methodology is based on a non-econometric technique developed by management scientists on economic concepts for evaluating the performance of decision-making units and implementing a benchmarking process. An extended model is developed in the paper for evaluating the efficiency and determining the optimal percentage of company-owned outlets (PCO) of each franchise chain.

Findings

First, results showed that the PCO has a positive impact on franchise chain efficiency; even if other chain characteristics have a larger impact. Second, the optimization of the PCO allows for additional improvements in efficiency.

Research limitations/implications

Even though this study has some limitations (e.g. sample and variable selection), it contributes to the literature on franchising by providing an approach allowing us to answer to the question of Shane (1998) on the optimal proportion of franchised units given other firm characteristics.

Practical implications

By developing a model that allows for the joint evaluation of franchise chain efficiency and optimal PCO, this study offers to franchisors a new benchmarking process allowing for both a competitive and functional benchmarking.

Originality/value

The originality of this research can be found in the new model developed for allowing a benchmarking of franchise chains that allows an evaluation of efficiency jointly with a determination of their optimal organizational form.

Details

International Journal of Retail & Distribution Management, vol. 42 no. 7
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 12 July 2011

Kelley O'Reilly and David Paper

A paucity of literature considers a growing trend within the retail space whereby franchise companies and their franchisees market and sell products and services across…

Abstract

Purpose

A paucity of literature considers a growing trend within the retail space whereby franchise companies and their franchisees market and sell products and services across multiple channels, including company‐owned retail stores. This case study aims to explore the processes used to support the customer experience, the control mechanisms that are in place, and the channels by which these customer‐company interactions occur.

Design/methodology/approach

A qualitative approach employing an adaptation of the grounded theory method for data collection, coding, and analysis was used and this study specifically focused on an international van‐based service franchise during the integration of the franchise company's service into the retail brick‐and‐mortar locations of the parent company. Participants included retail employees of the parent company, franchise company support staff, franchisees, and third‐party call center agents working for the parent company.

Findings

Findings suggest a relationship exists between the alignment of the internal factors of the customer relationship management (CRM) experience (e.g. people, processes, and technology) and the relative strength or weakness of each external factor (e.g. customer, company, and competition). Moreover, it is postulated that weaker customer‐centric service results in greater misalignment of internal factors and leads to larger service variability, or sub‐optimized CRM.

Originality/value

The unique contribution of this research is the juxtaposition of the disparate marketing approaches of the parent company and franchisees and the subsequent impact on CRM efforts of the company. A conceptual model of internal and external factors of the CRM experience is presented.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 13 no. 1
Type: Research Article
ISSN: 1471-5201

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Article
Publication date: 3 April 2007

Scott Weaven and Lorelle Frazer

This paper aims to extend current understanding of organisational choice theory through examining to what extent firm‐level factors influence the growth of…

Abstract

Purpose

This paper aims to extend current understanding of organisational choice theory through examining to what extent firm‐level factors influence the growth of franchisee‐owned mini‐chains within Australian franchise systems. In particular, this study examines how the age of the system, corporatisation of management processes, plurality of distribution, levels of intra‐firm conflict and franchise system complexity influence multiple unit franchising adoption.

Design/methodology/approach

A qualitative methodology was adopted to gain a clearer picture of the salient issues influencing multiple unit franchising adoption from the franchisor's perspective.

Findings

The research reveals that mature franchise systems in Australia use sequential methods of multiple unit franchising expansion in order to minimise adverse selection costs and leverage learning economies derived from previous experiences in managing intra‐firm channel relationships.

Research limitations/implications

Industry‐specific influences and differences in managerial orientations may limit the predictive application of this study to all franchise systems. However, on balance the reflections offered by the participants provide a rich and valuable source of information about the factors influencing their willingness to encourage this growth strategy.

Practical implications

Franchisors need to consider upfront whether they are ready and able to encourage multiple unit ownership within their systems. Less experienced franchisors may need to corporatise operations, minimise channel conflict and introduce administrative support procedures to ensure the recruitment of suitable franchisee candidates who will assist in realising the franchisor's goals, thus promoting a harmonious franchising relationship.

Originality/value

Whereas, previous research has investigated motivations for encouraging multiple unit franchising, this paper supplements that literature by examining multiple unit franchising within Australia.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 19 no. 2
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 9 February 2015

Laura Parte-Esteban and Pilar Alberca-Oliver

This paper aims to investigate the determinants of dynamic efficiency in the Spanish hotel industry. The study also aims to introduce a large number of variables…

Abstract

Purpose

This paper aims to investigate the determinants of dynamic efficiency in the Spanish hotel industry. The study also aims to introduce a large number of variables potentially related to efficiency and performance measurement. In particular, it seeks to explore the association between efficiency scores and firm-specific factors (variables related to market conditions, business factors, audit variables, organisational forms and subsidiary variables).

Design/methodology/approach

In this study, the data envelopment analysis (DEA) double-frontier approach is used according to firm size in conjunction with non-parametric tests (Mann–Whitney U and Kruskal–Wallis tests), a dynamic Tobit regression model and a bootstrapping procedure. The tests are performed using 1,805 hotels from the years 2002 to 2011. This allows the authors to overcome several of the major limitations of previous papers, namely, the low number of observations, the static or cross-sectional analysis referring to a single period and the use of conventional DEA models, among others.

Findings

The results show significant differences in dynamic efficiency among Spanish hotel companies. In addition, the evidence suggests the levels of efficiency are related to the hotel's location, the hotel's size, internationalisation, the first source of the hotel's activity, audit service and management variables.

Research limitations/implications

One limitation of the study is related to the input and output variables specified in the DEA model. The selection of inputs and outputs was based on data availability and the previous literature on hotel efficiency, but the results might change if the hotel sample and the selected input and output variables were changed. Another limitation is the availability of data on ownership structure and subsidiary variables for very small businesses.

Originality/value

The paper contributes to the tourism literature by offering new insights into hotel performance: dynamic efficiency evaluation and its main determinants. The paper presents strategic market implications for hoteliers, government decision-makers and destination management organisations.

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Article
Publication date: 17 June 2006

Ilan Alon

Master international franchising is among the fastest growing methods for international franchisors to expand abroad because this method involves minimal financial risk…

Abstract

Master international franchising is among the fastest growing methods for international franchisors to expand abroad because this method involves minimal financial risk and a quick go‐to‐market strategy. This article reviews the extant literature and develops propositions relating specific environmental factors to the propensity of franchisors to use master international franchising. We propose that master international franchising is more likely when the economic potential and level of corruption are low; and when the competitive intensity, demand variability, franchise knowledge, masculinity and individualism in society, geographical and cultural distance, country risk, and level of legal protection are high

Details

Multinational Business Review, vol. 14 no. 2
Type: Research Article
ISSN: 1525-383X

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Book part
Publication date: 7 December 2020

Anne-Claire Pache and Patricia H. Thornton

This chapter identifies assumptions, conceptual issues and challenges in the literature on hybrid organizations that draws on the institutional logics perspective. The…

Abstract

This chapter identifies assumptions, conceptual issues and challenges in the literature on hybrid organizations that draws on the institutional logics perspective. The authors build on the existing literature reviews as well as on an analysis of the 10 most cited and 10 most recently published articles at the intersection of hybrid organizations and institutional logics. The authors further draw from the literature on theory construction and theory development and growth to strengthen our analysis of this body of work and reflect upon future theoretical developments. From this analysis, the authors highlight four challenges to current research on organizational hybridity with an institutional logics lens and develop four suggestions to inspire future research. In doing so, they aim at seeding a more nuanced use of the institutional logics perspective and thereby foster the development of innovative and cumulative theory and empirical research on organizational hybridity.

Details

Organizational Hybridity: Perspectives, Processes, Promises
Type: Book
ISBN: 978-1-83909-355-5

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Article
Publication date: 13 February 2009

Victoria Bordonaba Juste, Laura Lucia‐Palacios and Yolanda Polo‐Redondo

This paper aims to examine whether there is evidence of pioneering advantage in long‐term survival terms in the particular context of franchising.

Abstract

Purpose

This paper aims to examine whether there is evidence of pioneering advantage in long‐term survival terms in the particular context of franchising.

Design/methodology/approach

Data covering 188 franchise chains for an eight‐year period (from 1995 to 2003), operating in restoration and fashion retailing sector are used. The Cox proportional hazard model is used to examine survival. The existence of pioneering advantage is tested in the Spanish context because its franchising sector is one of the most developed in Europe, along with those of France, the UK and Germany.

Findings

Empirical evidence of pioneering advantage was found. Early entry strategy leads to lower failure risk. Different strategies are highlighted according to different entry time moments, suggesting a moderating role of the entry timing decision. Additional variables influence survival such as previous experience or dual distribution.

Research limitations/implications

The paper has some limitations. The focus is just on one country. Therefore, a multi‐country study could help to generalize the results. Furthermore, the research could be improved by adding variables of the specific franchise context such as the franchise fee or the royalty rates.

Practical implications

The results may help franchisors to improve their survival, adapting their strategies to be more competitive in the market. Depending on their entry timing decisions, they can have different strategies to continue in the market. Pioneers differ from late entrants in terms of ownership structure and system size – two main aspects for survival. Moreover, the paper can help the prospective franchisee in making a better selection of franchise chain in which to invest. Findings support the idea that entering at the early stages of the franchise industry brings some advantages.

Originality/value

The paper highlights the importance of the entry‐timing decision in the franchising context using survival as performance. This objective has not been underlined in previous research.

Details

International Journal of Retail & Distribution Management, vol. 37 no. 2
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 7 August 2017

Gaetano Martino, Enrica Rossetti, Andrea Marchini and Angelo Frascarelli

The purpose of this paper is to investigate the role of the modes of organizing the technological knowledge (make, buy and hybrid organization) in the decision to innovate…

Abstract

Purpose

The purpose of this paper is to investigate the role of the modes of organizing the technological knowledge (make, buy and hybrid organization) in the decision to innovate the production process.

Design/methodology/approach

The study first develops a conceptual framework drawing the concept of mode of organization from the Transaction Cost Economics. The three research questions are coherently formulated which concern: the influence of the modes of organization on the decision to innovate and to invest in supporting instruments; the variability of this influence and the complementarity degree between the decision to innovate and to invest. The empirical analysis is carried out with respect to the olive oil sector considering a representative sample of olive millers (Umbria, Central Italy) and a complementary accidental sample drawn from an existing database.

Findings

The main results of the study provide evidence for the role of modes of organization in the knowledge acquisition finalized to the process innovation. The role of the “buy” option is important, while the collaboration – the “hybrid” organization – seems to influence strongly the innovation and the related investment decision. The important role of the information sources appears effective and articulated. Finally, despite the great economic importance of the quality requirements, the millers appear to be more sensitive to the difficulties to build up a clear process vision in terms of technology.

Research limitations/implications

The main limitation of the study is that it refers to a specific supply system including small enterprises and does not account for the pattern of innovation in other olive oil production systems. Moreover, one of the samples that was observed and analyzed is accidental in nature and does not allow a clear and robust comparison for the representative sample.

Practical implications

The findings of this study can contribute to the identification of organizational constraints to the rate on process innovation.

Originality/value

The originality of the study is based on the main focus, i.e. the attention to the role of the modes of organization in the decision to innovate, which provides complementary information to the extant literature on the choice of modes of organizing the technological knowledge acquisition. Moreover, the conceptual framework and findings are connected to the current research on the variety of the agribusiness organizations which is still a partially explored field of inquiry.

Details

British Food Journal, vol. 119 no. 8
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 15 February 2011

Yolanda Polo‐Redondo, Victoria Bordonaba‐Juste and Laura Lucia Palacios

The purpose of this paper is to examine three strategic decisions that determine firm size in the franchise distribution system: price policy, the timing decision, and…

Abstract

Purpose

The purpose of this paper is to examine three strategic decisions that determine firm size in the franchise distribution system: price policy, the timing decision, and network ownership.

Design/methodology/approach

The paper uses data covering 384 franchise chains operating in the catering and fashion retailing sectors for an 18‐year period (from 1986 to 2004). The panel data methodology is applied.

Findings

The paper finds that the pricing policy and the ownership structure can be used to attract new franchisees and it also finds empirical evidence of the advantages of early followers. Some differences are found between the two sectors analysed. Additionally, it finds evidence of the use of different strategies by mature and young franchise chains.

Research limitations/implications

The focus is only on the fashion and catering sectors in the franchise industry. Although they are the two most important sectors in the Spanish market, this limitation provides researchers with interesting possibilities for further research in other countries and in other sectors.

Practical implications

The results may help franchisors to know which strategies can increase their system size. First, franchisors should focus on minimizing their control of the network strategy. Second, franchisors should increase the franchise fee and the royalties as the chain matures to expand their system size. Third, managers who are planning to begin to franchise their businesses should decide to enter at the growth stage of the franchise market in order to achieve greater advantages.

Originality/value

This paper highlights the importance of the price strategy and of the entry timing decision in the franchising context in countries where the franchise system is still developing.

Details

European Journal of Marketing, vol. 45 no. 1/2
Type: Research Article
ISSN: 0309-0566

Keywords

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