John E. Clarkin and Robert B. Hasbrouck
The purpose of this research is to explore the objectivity and reliability of Entrepreneur Magazine's Franchise 500® ranking system.
Abstract
Purpose
The purpose of this research is to explore the objectivity and reliability of Entrepreneur Magazine's Franchise 500® ranking system.
Design/methodology/approach
Using data from 1997 to 2004 rankings, regression analysis was used to determine the extent to which key variables explained the rank of franchise firms.
Findings
Several quantifiable measures, categorized by the publishers as “most important” or “important” to a firm's rankings, were found to have little or no explanatory power in the regression model. Longitudinal analysis revealed inconsistencies in the ranking among the top 100 ranked franchises, which question the ranking system's reliability.
Research limitations/implications
Only a subset of the variables used to calculate the rankings are disclosed by the publisher, yet these variables explain a substantial portion of any given franchise's rank. Only the top 100 ranked firms were included in the study.
Practical implications
While considered to be important to a firm's rank, the amount of pending litigation and the percentage of terminations within the system, found to be indicators of conflict between franchisor and franchisees, appear to have little effect on a franchise's rank. Also, size of the franchise system appears to have a strong but inconsistent relationship with rank, both within any given year and over the time period covered by this study. Lastly, the relationship between growth rate and rank, another factor considered by the publisher to be most important, also appears inconsistent, both in terms of number of outlets added and percentage of growth attained over the previous year.
Originality/value
Due to the wide popularity of the ranking system by practitioners and researchers a more systematic examination of the ranking appears justified to understand the underlying research implications of franchising research as it relates to the Franchise 500.
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Timothy R. Hannigan and Guillermo Casasnovas
Field emergence poses an intriguing problem for institutional theorists. New issue fields often arise at the intersection of different sectors, amidst extant structures of…
Abstract
Field emergence poses an intriguing problem for institutional theorists. New issue fields often arise at the intersection of different sectors, amidst extant structures of meanings and actors. Such nascent fields are fragmented and lack clear guides for action; making it unclear how they ever coalesce. The authors propose that provisional social structures provide actors with macrosocial presuppositions that shape ongoing field-configuration; bootstrapping the field. The authors explore this empirically in the context of social impact investing in the UK, 2000–2013, a period in which this field moved from clear fragmentation to relative alignment. The authors combine different computational text analysis methods, and data from an extensive field-level study, to uncover meaningful patterns of interaction and structuration. Our results show that across various periods, different types of actors were linked together in discourse through “actor–meaning couplets.” These emergent couplings of actors and meanings provided actors with social cues, or macrofoundations, which guided their local activities. The authors thus theorize a recursive, co-constitutive process: as punctuated moments of interaction generate provisional structures of actor–meaning couplets, which then cue actors as they navigate and constitute the emerging field. Our model re-energizes the core tenets of new structuralism and contributes to current debates about institutional emergence and change.
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Lim Xtn Yi, Filzah Md Isa, Shaista Noor and Leilanie Mohd Nor
Over these recent years, increasing studies have found a higher propensity of firms founded by entrepreneurial teams (ETs) for continuous operation and high performance, compared…
Abstract
Purpose
Over these recent years, increasing studies have found a higher propensity of firms founded by entrepreneurial teams (ETs) for continuous operation and high performance, compared to firms single-handedly created by an entrepreneur. In spite of the emerging significance of ETs, the number of related studies remains inadequately low, particularly within the context of franchise firms. Therefore, this study aims to explore the factors that influence the ETs’ performance in the Malaysian education and childcare franchise system using a qualitative approach.
Design/methodology/approach
Qualitative Research Strategy has been adopted and 27 ET leaders participated in this study to get the holistic view of factors influencing the entrepreneurial team (ET) performance in education and childcare franchise in Malaysia.
Findings
The results highlight the factors (team leadership, team training, team diversity, team processes, team confidence and team mental models) influencing the entrepreneurial team (ET) performance in education and childcare franchise in Malaysia.
Originality/value
The present study may help to provide useful information to policy makers, which enable them to formulate the strategies franchise ETs performance in Malaysia. As this study provides insight of factors that have an impact on ET performance. A best practice model for education and childcare franchise ETs’ performance is designed.
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John McDonnell, Amanda Beatson and Chih‐Hsuan Huang
Franchised convenience stores successfully operate throughout Taiwan, but the convenience store market is approaching saturation point. This study attempts to empirically examine…
Abstract
Purpose
Franchised convenience stores successfully operate throughout Taiwan, but the convenience store market is approaching saturation point. This study attempts to empirically examine some important elements (e.g. relationship quality, loyalty, and cooperation) that might promote a successful long‐term franchising relationship between franchisors and franchisees of convenience stores in Taiwan.
Design/methodology/approach
A total of 500 surveys were mailed to a random sample of convenience stores' franchisees among the four main franchisors in Taiwan. This research first used correlation analysis to explore the associations between the constructs and then used a regression analysis to further explore patterns of associations.
Findings
The results show that relationship quality is positively correlated with the cooperation between franchisors and franchisees, as well as with franchisee loyalty. Additionally, the cooperative behavior between franchisees and franchisors is significantly correlated with franchisees' loyalty.
Research limitations/implications
Data were only collected through four key convenience stores' franchise chain systems in Taiwan. To develop a more global perspective, further replications of this study are necessary to examine the stability of our results in other contexts.
Practical implications
This research has highlighted that small business owners operating in a franchise system should pay attention to the importance of relationship quality, loyalty, and cooperation in stabilizing franchising relationships and enhancing competitive advantage.
Originality/value
The majority of studies on franchising relationships are conducted in a Western context. To date, there are no studies that explore the interaction between relationship quality, loyalty, and cooperation in a franchising relationship in an Eastern context.
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Nan Hua, John W. O’Neill, Khaldoon Nusair, Dipendra Singh and Agnes DeFranco
This study aims to validate the value-added hypothesis in hotel franchising using data from 2,120 properties across the United States with a total of 12,720 observations over a…
Abstract
Purpose
This study aims to validate the value-added hypothesis in hotel franchising using data from 2,120 properties across the United States with a total of 12,720 observations over a six-year period of 2008-2013.
Design/methodology/approach
A series of annual cross-sectional regressions for each of the sample years and aggregated panel regressions for all sample hotel years were conducted. Newey–West errors were computed to address potential issues of autocorrelation and heteroscedasticity, and sensitivity tests were also performed.
Findings
The paper concludes that franchise royalty fee adds value to hotel franchisees as it significantly and positively affects revenue per available room (RevPAR) for all sample years after controlling for the major determining dimensions of RevPAR. A series of sensitivity tests also show robustness of results.
Research limitations/implications
This study offers a rational and empirical explanation for the positive and significant effect of franchise royalty fees on hotel performance and the value-added hypothesis. Hoteliers need to ensure that there is a proper match between hotel specific attributes and the potential franchise when making a franchise selection. Individual entrepreneurs can partner with franchisors to reap the benefits of franchising, while experienced hoteliers can also use the findings of this study to make strategic decisions.
Originality/value
This study is the first using actual performance data from a large hotel property sample over multiple years to validate the value-added theory, where a higher royalty fee does command a higher RevPAR.
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Sara Quach, Scott K. Weaven, Park Thaichon, Brent Baker and Chase Jeremiah Edwards
This paper aims to investigate the emerging relevance of gratitude within a contracted, long-term business-to-business context. Specifically, the authors examine the relationships…
Abstract
Purpose
This paper aims to investigate the emerging relevance of gratitude within a contracted, long-term business-to-business context. Specifically, the authors examine the relationships between personality, gratitude and performance in franchisor–franchisee relationships.
Design/methodology/approach
A self-report survey was used to collect data from a sample of 225 franchisees drawn from across 28 franchise systems.
Findings
The results reveal that extraversion had a negative relationship with gratitude, while agreeableness and emotional stability were positively related to gratitude. Gratitude was also positively related to performance and mediated the relationship between extraversion, agreeableness and emotional stability and performance. Moreover, the results confirm that relationship length moderated the relationship between conscientiousness and gratitude.
Research limitations/implications
The study shows that an individual’s personality is a factor in determining the onset of perceived gratitude, which acts as a mediating mechanism between personality and performance. This extends current research into the relational sentiment of gratitude, which has, to date, only examined the traits of the benefactor within the context of perceived benefits.
Practical implications
It is proposed that the knowledge of franchisees’ personal characteristics can be used to develop and maintain on-going interpersonal relationships between franchisees and franchisors. Moreover, the authors suggest that franchisors’ relationship strategy should be revised over time to maintain its effectiveness.
Originality/value
This paper represents the first empirical examination of the influence of personality on an individual’s proclivity to experience felt gratitude in a franchisor–franchisee relationship. This addresses one of the major issues in franchising research, which often overlooks the role of individual dispositional personality traits.
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Scott Weaven, Lorelle Frazer and Jeff Giddings
Although Australian franchising sector regulation promotes system disclosure and provides for mandatory conflict mediation, there is some concern that inequities exist within the…
Abstract
Purpose
Although Australian franchising sector regulation promotes system disclosure and provides for mandatory conflict mediation, there is some concern that inequities exist within the conflict management process. From 2006 to 2008 no less than four government inquiries into franchising took place in Australia in an attempt to resolve problems occurring in the sector. A major issue was that of the perceived imbalance of power in the franchisor‐franchisee relationship, which often results in conflict between the two parties. The purpose of this paper is to extend the conflict literature in dyadic exchange relationships through investigating the causes of conflict from the franchisor and franchisee perspectives.
Design/methodology/approach
Exploratory research is undertaken to identify the major causes of franchising conflict. Face‐to‐face interviews are conducted with 24 franchising experts, such as lawyers and mediators, to draw upon their considerable experience in the sector.
Findings
The key findings suggest that a lack of due diligence is associated with the formation of unrealistic expectations which increases the potential for future relational conflict. Although franchising experience impacts upon operational approaches and conflict, the role played by third parties and market conditions both appear to exacerbate dissatisfaction in franchise systems.
Research limitations/implications
This research is exploratory and therefore the findings are tentative. The preliminary conceptual models will be tested in a large quantitative survey of key franchising stakeholders in the near future.
Originality/value
With the Australian franchising sector presently under intense scrutiny by regulators this research is timely and important. It is expected that the findings will provide government and industry representatives with a more balanced understanding of the causes of franchising conflict so that preventative action may be taken.
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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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Impact investing, a type of values-based investing that combines financial investment with philanthropic goals, is receiving heightened scholarly and practitioner attention. The…
Abstract
Purpose
Impact investing, a type of values-based investing that combines financial investment with philanthropic goals, is receiving heightened scholarly and practitioner attention. The geography of impact investing, however, is largely unexamined, and it is not clear why some regional impact-investing communities are more vibrant than other communities. Regional differences in entrepreneurial activities are increasingly explained by differences in the vitality of entrepreneurial ecosystems, the set of interconnected forces that promote and sustain regional entrepreneurship. The purpose of this paper is to leverage insights from entrepreneurial ecosystems studies to understand the dynamics of communities that encourage and support impact investing.
Design/methodology/approach
To explain inter-regional differences in the prevalence and intensity of impact investing, this conceptual paper draws from research on entrepreneurial ecosystems and impact investment to theorize about the ecosystem attributes and components that drive vibrant impact investing communities.
Findings
It is theorized that vibrant impact investing ecosystems have three system-level attributes – diversity, cohesion and coordination – that are influenced by the core components of the ecosystems, including the characteristics of investors, the presence of social impact support organizations and cultural values that promote blending logics.
Originality/value
The theoretical model contributes to research on impact investing and hybrid organizing, produces concrete implications for ecosystem builders and sets an agenda for future research.
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Ayesh Udayanga Nelumdeniya, B.A.K.S. Perera and K.D.M. Gimhani
The purpose of this study is to investigate the usage of digital technologies (DTs) in improving the mental health of workers on construction sites.
Abstract
Purpose
The purpose of this study is to investigate the usage of digital technologies (DTs) in improving the mental health of workers on construction sites.
Design/methodology/approach
A mixed research approach was used in the study, which comprised a questionnaire survey and two phases of semi-structured interviews. Purposive sampling was used to determine the interviewees and respondents of the questionnaire survey. Weighted mean rating (WMR) and manual content analysis were used to rank and evaluate the collected data.
Findings
The findings of this study revealed bipolar disorder, anxiety disorders, attention-deficit/hyperactivity disorder, obsessive-compulsive disorder, work-related stress and depression as the six most significant mental disorders (MDs) among the construction workforce and 30 causes for them. Moreover, 27 symptoms were related to the six most significant MDs, and sweating was the most significant symptom among them. Despite that, 16 DTs were found to be suitable in mitigating the causes for the most significant MDs.
Originality/value
There are numerous studies conducted on the application of DTs to construction operations. However, insufficient studies have been conducted focusing on the application of DTs in improving the mental health of workers at construction sites. This study can thus influence the use of DTs for tackling the common causes for MDs by bringing a new paradigm to the construction industry.