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Consistent with traditional internationalization theory, we argue that, when a firm chooses franchising to achieve market penetration, market propinquity/similarity matters. Using a modified gravity model, we examine six country characteristics believed to enhance the flow of franchise activity among 39 nations. Our findings support the notion that market propinquity facilitates the flow of franchises between nations. Franchise expansion is greatest when the home and host nations are similar in terms of geography, culture, media availability, and political risk. The management implications of these findings are discussed in detail.

This article has been withdrawn as it was published elsewhere and accidentally duplicated. The original article can be seen here: 10.1108/08876049410058406. When citing the article, please cite: John F. Preble, Richard C. Hoffman, (1994), “Competitive Advantage through Specialty Franchising”, Journal of Services Marketing, Vol. 8 Iss: 2, pp. 5 - 18.

This case has multiple theoretical linkages at the micro-organizational behavior level (e.g. job enrichment), but it is best analyzed and understood when examined at the organizational level. Students will learn about shared entrepreneurship, high performance work systems, shared leadership and virtuous organizations, and how they can develop a sustainable competitive advantage.

The case was prepared using a qualitative approach. Data were collected via the following ways: literature search; organizational documents and published historical accounts; direct observations by a research team; and on-site audio recorded and transcribed individual and group interviews conducted by a research team (the authors) with organization members at multiple levels of the firm.

John Lewis Company has been in business since 1864. In 1929, it became the John Lewis Partnership (JLP) when the son of the founder sold a portion of the firm to the employees. In 1955, he sold his remaining interest to the employee/partners. JLP has a constitution and has a representative democracy governance structure. As the firm approaches the 100th anniversary of the trust, it is faced with multiple challenges. The partners are faced with the question – How to respond to the environmental turmoil?

This case has environmental issues – How to respond to competition, technological changes and environmental uncertainty and an internal issue – How can high performance work practices provide a sustainable competitive advantage? Both issues can be examined in strategic management courses after the students have studied traditionally managed companies. This case could also be used in human resource management courses.

This case illustrates the rationale for adopting employee ownership, and difficulties in implementing employee empowerment beyond investment. In the beginning it focuses on why Jerry Pritchett, one of the co-founders of Pritchett Controls, decided to convert it to an employee-owned company. In the body of the case, it details the efforts of the company to operate under its new ownership structure in an increasingly competitive environment. Although Pritchett established employee owners, only selected High Performance Work Systems (HPWS) practices have been implemented. The issue that reader must grapple with is whether other HPWS practices should be adopted or not.

Primary data were collected by interviewing eight managers including the current and former CEO at two of the firm’s three locations. Secondary data were used to supplement industry and competitive information.

Human resources courses, especially those that focus on strategic human resource management, organizational development, and how high performance organizations can be built, would be most appropriate for this case.

The primary theoretical foundations for this submission are shared entrepreneurship and HPWS. Knowledge of leadership, employee ownership, human resources, corporate governance, organizational culture and strategy would also be helpful in analyzing this case.

The purpose of this teaching case is to introduce students to an alternative business model as practiced by the Haier Group, a Chinese company, and how that model was used to turn around an acquired company in the United States of America (USA). The explicit teaching objectives are threefold. First, the case provides insights into Haier’s unique employee-centered culture. Second, Haier’s efforts to transfer parts of its culture to the newly acquired General Electric (GE) Appliance Division are discussed. Third, to improve the performance of the acquired division, Haier had to invest in people, equipment and new product technology.

This case is based on both primary and secondary research. The authors interviewed the chief executive officer. In addition, one of the authors spent a week in China observing and participating in meetings at the Haier Group. Both before and after the interviews, the authors searched both print and electronic media for additional information.

The case describes how Haier, a large Chinese appliance manufacturer, learned from its own difficult growth in building an employee- and client-driven organization. Haier was able to transfer key aspects of its culture, management practices and technology to help turnaround the well-known American appliance brand GE. The results of the first five years have been financially successful and investment in new product technology (Smart Home) bodes well for the future.

This case represents only one successful turnaround of one acquisition, GE Appliances, by the Haier Group in the USA. Whether the changes introduced would work with other acquisitions in other countries is unknown. Thus, additional follow-up research needs to be done.

This case brings into question the traditional, hierarchical, bureaucratic, spreadsheet-driven model of management that is the predominant model taught and practiced in the USA. Others, such as Gary Hamel and Michele Zanini, have also raised the same question. This case introduces readers to another way and is just one more example of how managers who practice a high engagement style and share financial success with workers can outperform those who do not.

This case documents the introduction of nontraditional management and human resource management practices by a foreign, Chinese company, into what at one time had been a highly regarded division of a traditional major American corporation. GE had become known for strident labor-management relationships. The employees’ acceptance of the alternative approach to management was in doubt prior to the acquisition, but over the past five years, the labor–management relationship appears to have improved as well as the profitability of the division.

Although the acquisition of the GE Appliance Division by the Haier Group has been widely reported in the press, knowledge of how the acquisition was successfully turned around from a money-losing GE Division to a profitable and growing portion of the Haier Group has been largely ignored in both the popular press and in instructional material for the classroom. This case study seeks to ameliorate the latter deficiency.

Multinationals increasingly require a cadre of skilled managers to effectively run their global operations. This exploratory study examines the relationship between emotional intelligence (EI) and managerial effectiveness among three cultures. EI is conceptualized and measured as self‐other agreement concerning the use of managerial skills using data gathered under a 360‐degree feedback process. Three hypotheses relating to managerial self‐awareness of both interactive and controlling skills are examined using data from 3,785 managers of a multinational firm located in the United States (US), United Kingdom (UK), and Malaysia. The two sets of managerial skills examined were found to be stable across the three national samples. The hypotheses were tested using polynomial regressions, and contour plots were developed to aid interpretation. Support was found for positive relationships between effectiveness and EI (self‐awareness). This relationship was supported for interactive skills in the US and UK samples and for controlling skills in the Malaysian and UK samples. Self‐awareness of different managerial skills varied by culture. It appears that in low power distance (PD) cultures such as the United States and United Kingdom, self‐awareness of interactive skills may be crucial relative to effectiveness whereas in high PD cultures, such as Malaysia self‐awareness of controlling skills may be crucial relative to effectiveness. These findings are discussed along with the implications for future research.

Combining trends in employment flexibility, organizational learning, need for improved leadership and entrepreneurship is important in managing today’s organizations. This study aims to explore these relationships within a single media firm in one of the Baltic States.

The subject for this exploratory case study is a small Estonian media company having a total of 43 members/employees. Data for the study were collected using two questionnaires (organizational leadership capability and dimensions of learning organizations) and by in-depth interviews. Assessment and analysis of the data included: measurement of organizational leadership (OL) and learning organization; measurement of entrepreneurial behavior; and analysis of the results gained from studying the issues pertaining to OL, learning organization and entrepreneurial behavior.

The results of this study reveal that part-time versus full-time employees have more positive attitudes toward the organization’s decentralized leadership and of six of seven learning characteristics. It appears that the entrepreneurial orientation of the part-time employees (PTEs) helps explain the differences observed.

The implications for practice based on this study is that firms should consider their PTEs as a valuable asset not only because of the flexibility they offer to the workforce but also because of the special skills and outlooks they bring to the organization.

This paper explores the relationships among organizational learning, OL and entrepreneurship in context of part-time employment.

About a decade ago positive predictions were made regarding the international growth of franchising. This study was undertaken to examine the actual growth and development of franchising globally during the 1990s. Using survey and archival data findings regarding the state of franchising in 40 countries are presented. Franchising has met or exceeded the growth expectations, generating an average of $3.7 billion in annual sales in the nations investigated. However, considerable regional differences in franchising activities do exist. The business sectors experiencing the most franchising growth are retail and restaurants. Franchising firms tend to export their business formats to neighboring countries or to countries with similar cultural characteristics. Operational concerns regarding legal and social issues across borders are also examined. Implications for practice and research are discussed.

The purpose of this study is to examine the relationship between managerial skills and effectiveness in a cross-cultural setting to determine their applicability.

Data from 7,606 managers in 5 countries from a large multinational firm were analyzed using structural equation modeling to assess all relationships simultaneously and reduce error effects.

The results support the cross-cultural validity of the model of managerial skills-effectiveness. Few cross-cultural differences were found. Interactive skills had greater positive impact on attitudes than initiating skills. Pressuring skills had a negative impact on attitudes. None of the skill sets were related to job performance.

Using a single firm and industry to control for other cultural levels may limit the generalizability of the results. Only three skill sets were assessed and one coarse-grained measure of culture was used. These factors may account for the few cultural differences observed.

Training programs for managers going overseas should develop both interactive and initiating skills sets, as both had a positive impact on attitudes across cultures.

The model of managerial skills and effectiveness was validated across five cultures. The use of structural equation modeling ensures that the results are not an artifact of the measures and represents a more direct test for cross-cultural differences. Managing successfully across cultures may require fewer unique skills, with more emphasis placed on using basic management skills having positive impact.

Suggests that competitive mobility is based on strategic adaptation to meet customer needs and market trends. This type of competitive advantage is characteristic of mobile service franchises, and it also has implications for non‐franchised businesses. Reviews the growth of mobile service franchises and the consumer trends supporting their development, and examines how these franchises use mobility to create competitive advantage. Identifies and describes seven dimensions/elements defining the competitive mobility of these organizations, based on a study of 25 mobile franchise systems. Discusses the implications of competitive mobility for most types of business.