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Article
Publication date: 20 October 2021

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.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 15 no. 1
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 19 August 2022

Gowsia Shah and Natasha Saqib

This study aims to develop an instrument that examines the franchisor as an entrepreneurial form. Although examining the entrepreneurial tendencies of the franchisors has been a…

Abstract

Purpose

This study aims to develop an instrument that examines the franchisor as an entrepreneurial form. Although examining the entrepreneurial tendencies of the franchisors has been a central goal of the present research, the study also uncovers the factors that lead firms to offer franchises and promote franchisor growth.

Design/methodology/approach

Data was collected from the population of franchisor organizations in India by following a survey approach. Statistical techniques including descriptive and inferential statistics like correlation and structural equation modeling were used to analyze the data.

Findings

The study results show that franchisors possess entrepreneurship traits and reveal entrepreneurial behavior. The study also provides empirical evidence toward various dimensions that contribute to franchisor growth.

Research limitations/implications

The results of the present study propose research implications toward clarification of the entrepreneurial position of the franchisors in the extensively unclear research area.

Originality/value

Considerable ambiguity surrounds franchisors’ activities running and managing their business as entrepreneurial firms. By indicating franchisors’ entrepreneurial traits, the study expatiates on major franchising and entrepreneurship literature arguments.

Details

International Journal of Innovation Science, vol. 15 no. 3
Type: Research Article
ISSN: 1757-2223

Keywords

Open Access
Article
Publication date: 12 October 2021

Cintya Lanchimba, Hugo Porras, Yasmin Salazar and Josef Windsperger

Although previous research has examined the role of franchising for the economic development of countries, no empirical study to date has investigated the importance of…

4905

Abstract

Purpose

Although previous research has examined the role of franchising for the economic development of countries, no empirical study to date has investigated the importance of franchising for social, infrastructural, and institutional development. The authors address this research gap by applying research results from the field of sustainable entrepreneurship and highlight that franchising has a positive impact on economic, social, institutional and infrastructural development.

Design/methodology/approach

This study uses a fixed-effects model on a panel dataset for 2006–2015 from 49 countries to test the hypothesis that franchising positively influences various dimensions of country development such as economic social institutional and infrastructural development.

Findings

The findings highlight that franchising has a positive impact on the economic, social, infrastructural, and institutional development of a country. Specifically, the results show that the earlier and the more franchising systems enter a country, the stronger the positive impact of franchising on the country's economic, social, institutional, and infrastructural development.

Research limitations/implications

This study has several limitations that provide directions for further research. First, the empirical investigation is limited by the characteristics of the data, which are composed of information from 49 countries (covering a period of 10 years). Because franchising is not recognized as a form of entrepreneurial governance in many emerging and developing countries, the available information is mainly provided by the franchise associations in the various countries. Hence, there is a need to collect additional data in each country and to include additional countries. Second, although the authors included developed and developing countries in the analysis, the authors could not differentiate between developed and developing countries when testing the hypotheses, because the database was not sufficiently complete. Third, future studies should analyze the causality issue between franchising and development more closely. The role of franchising in development may be changing depending on different unobserved country factors, economic sector characteristics, or development stages.

Practical implications

What are the practical implications of this study for the role of franchising in the development of emerging and developing economies? Because public policy in emerging and developing countries suffers from a lack of financial resources to improve the social, infrastructural and institutional environment, entrepreneurs, such as franchisors who expand into these countries, play an important role for these countries' development. In addition to their entrepreneurial role of exploring and exploiting profit opportunities, they are social, institutional, and political entrepreneurs who may positively influence country development (Schaltegger and Wagner, 2011; Shepard and Patzelt, 2011). Specifically, the findings highlight that countries with an older franchise sector (more years of franchise experience) may realize first-mover advantages and hence larger positive spillover effects on their economic, social, institutional and infrastructural development than countries with a younger franchise sector. Hence, governments of emerging and developing countries have the opportunity and responsibility to reduce potential market entry barriers and provide additional incentives for franchise systems in order to trigger these positive spillover effects. The authors expect that the spillover effects from the franchise sector on the economic, institutional, social and infrastructural development of a country are stronger in emerging and developing countries than in developed countries.

Originality/value

Previous research has focused on the impact of franchising on the economic development of a country, such as its growth of gross domestic product (GDP), employment, business skills, innovation and technology transfer. This study extends the existing literature by going beyond the impact of franchising on economic development: the results show that franchising as an entrepreneurial activity offers opportunities for economic, social, institutional, and infrastructural development, all of which are particularly important for emerging and developing economies. The findings of this study contribute to the international franchise and development economics literature by offering a better understanding of the impact of franchising on country development.

Details

International Journal of Emerging Markets, vol. 19 no. 1
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 16 February 2015

Olufunmilola (Lola) Dada, Anna Watson and David Kirby

In spite of the important contributions of franchising to many economies, it remains unclear whether it truly provides a scope for entrepreneurial tendencies to flourish amongst…

2159

Abstract

Purpose

In spite of the important contributions of franchising to many economies, it remains unclear whether it truly provides a scope for entrepreneurial tendencies to flourish amongst franchisees. The purpose of this paper is to examine the debate surrounding the franchisee as an entrepreneur from the perspectives of the main contributors within the UK franchising sector, franchisors and franchisees, by analysing their entrepreneurial tendencies and the franchisee selection process.

Design/methodology/approach

The paper is based on an empirical study using a focus group and a survey approach.

Findings

The findings from this study demonstrate that franchisees have similar levels of entrepreneurial tendencies to franchisors. The results further indicate that franchisors appear to value entrepreneurial personalities within their franchised outlets, as demonstrated by their franchisee selection process.

Originality/value

By providing an indication of the extent of the franchisee’s entrepreneurial tendencies, this study expatiates on major arguments in the franchising and entrepreneurship literature, which are also profound amongst practitioners in the fields of franchising and entrepreneurship.

Details

Journal of Small Business and Enterprise Development, vol. 22 no. 1
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 25 September 2019

Sara Quach, Scott Weaven, Park Thaichon, Debra Grace and Lorelle Frazer

Drawing on an outside-in marketing perspective, this paper aims to outline the development, implementation, evaluation and reflection of a real-world entrepreneurship education…

Abstract

Purpose

Drawing on an outside-in marketing perspective, this paper aims to outline the development, implementation, evaluation and reflection of a real-world entrepreneurship education (EE) intervention with cognitive, affective and ultimately behavioural objectives.

Design/methodology/approach

A specific and uniform EE program specifically targeted to current “would be” entrepreneurs who were investigating the franchising business model was developed, focusing on the behavioural outcomes. The effectiveness of the EE intervention was evaluated using a quasi-experimental research design, which involved franchisees who had not participated in the EE intervention (control group) and franchisees who had participated in the EE intervention (experimental group). The administration of the national on-line survey yielded a total of 520 responses (194 in the experimental group and 326 in the control group).

Findings

The planning process in the pre-intervention stage included situation analysis, objective setting and decisions in relation to the communication strategy, i.e. content and mode. The effectiveness of the EE intervention was evaluated in the post-intervention stage. The findings indicate that EE intervention resulted in participants’ positive cognitive, affective and behavioural outcomes such as performance and relationship management. Finally, following a reflection process, additional elements covering topics related to work-life balance were incorporated into the module pertaining to an individual’s suitability to become a franchisee.

Originality/value

This paper proposes a conceptual framework that represents an outside-in EE approach whereby problems, audiences, objectives and communication strategies (content and method) are strategically intertwined to produce relevant, measurable and diagnostic behavioural outcomes. The EE intervention can also improve the B2B relationship between actors in a business network.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 20 March 2017

Ilan Alon, Melih Madanoglu and Amir Shoham

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…

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.

Details

Competitiveness Review: An International Business Journal, vol. 27 no. 2
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 2 September 2014

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.

2011

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.

Details

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

Keywords

Article
Publication date: 1 January 2006

Patrick J. Murphy, Jianwen Liao and Harold P. Welsch

To interpret and explain evolution in entrepreneurial thought, using the application of history to unify the extant and wide‐ranging concepts underlying the field to detect a…

12492

Abstract

Purpose

To interpret and explain evolution in entrepreneurial thought, using the application of history to unify the extant and wide‐ranging concepts underlying the field to detect a conceptual foundation.

Design/methodology/approach

A conceptual approach is taken, the paper undertaking a delineation of how past theory has brought about the field's current state and an identification of some conceptual areas for future advancement.

Findings

The importance and impact of the entrepreneurship field is increasing in academic and practical settings. A historical view on the conceptual development of entrepreneurial thought provides a lens for scholars as well as practitioners to interpret and explain their own entrepreneurial activity or research and formulate new questions.

Originality/value

The paper aids scholars and researchers to interpret and explain entrepreneurial activity.

Details

Journal of Management History, vol. 12 no. 1
Type: Research Article
ISSN: 1751-1348

Keywords

Article
Publication date: 9 April 2021

Sara Quach, Scott K. Weaven, Park Thaichon, Debra Grace, Lorelle Frazer and James R. Brown

Framed within the theoretical domain of attribution theory, this study aims to investigate the antecedents of experienced regret following an entrepreneur’s business failure…

1286

Abstract

Purpose

Framed within the theoretical domain of attribution theory, this study aims to investigate the antecedents of experienced regret following an entrepreneur’s business failure (defined as firm discontinuance, closure or bankruptcy) and the impact of regret on personal well-being.

Design/methodology/approach

The population of interest was business owners whose businesses had failed within the past five years. The data was collected from 319 failed entrepreneurs using an online survey. Structural equation modelling was used to test the hypotheses presented in this study.

Findings

External attribution, including economic uncertainty and contract restrictions, was positively related to feelings of regret. Considering internal attribution, due diligence had a positive effect on regret whereas customer relationship development ability can reduce feelings of regret. Moreover, prevention-focused entrepreneurs were likely to experience higher levels of regret when engaging in extensive consideration in using information. Finally, regret had a detrimental effect on the entrepreneurs’ well-being.

Research limitations/implications

The research provides fresh perspectives on experienced regret, a relatively unexplored emotion in the entrepreneurship literature. In the context of small business operations, the locus of attribution (associated with business failure) is the key influence on learning following failed business attempts.

Practical implications

This study extends current knowledge of regret in the context of entrepreneurial failure, which has a significant catalytic effect on employment and entrepreneurial mobility.

Originality/value

This research sheds light on how emotional responses are derived from an entrepreneur’s self-assessment of their performance and attribution of blame for failure.

Details

European Journal of Marketing, vol. 55 no. 8
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 26 August 2014

Mohd Hizam-Hanafiah and Jun Li

This study aims to investigate the extent to which franchisees are satisfied with the attainment of their personal goals in business. Although franchising continues to be…

Abstract

Purpose

This study aims to investigate the extent to which franchisees are satisfied with the attainment of their personal goals in business. Although franchising continues to be exploited in the business sector, research and studies of franchising were scarcely mentioned in the organizational literature. Obviously, franchising as a body of knowledge has been studied mostly from the franchisor’s perspective than on franchisees. Within franchisee literature, studies on people’s motivation to become a franchisee have received some attention and provided little understanding, but no study has ever measured to what extent franchisees are satisfied with their personal goals in the business.

Design/methodology/approach

To investigate the hypotheses, a positivist approach is chosen as the philosophical foundation of this study, and all methodological aspects related with this approach are used in this study. A total of 204 franchisee entrepreneurs in Malaysia were surveyed and answered self-administered questionnaires.

Findings

In general, statistical analysis suggests franchisees were satisfied with their goals attainments. However, further analysis shows that franchisees were mostly satisfied with intrinsic rewards goals, followed by perceived autonomy goals and family concern goals. Surprisingly, franchisees have less satisfaction with economic gain goals comparatively with other goals. Moreover, based on the conceptual analysis and empirical evidence, hierarchy of economic goals and hierarchy of family goals are discovered. Besides, this study does suggest that franchisees’ sustainability in the business may be affected by attainment of their personal goals.

Originality/value

This paper studies franchising from a franchisee’s perspective and from a non-Western perspective. It investigates whether franchisee entrepreneurs share similar goals compared with other types of entrepreneurs and to what extent franchisees are satisfied with their personal goal attainment in the business.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 6 no. 3
Type: Research Article
ISSN: 2053-4604

Keywords

1 – 10 of over 1000