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Antecedents of franchise strategy and performance

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  • Wu, Chih-Wen

Abstract

Franchising is an important form of entrepreneurship, but literature explaining franchising strategy and performance is scarce. This study adapts the resource-based view and relationship-marketing theory to explain franchising strategy and performance differences in chain stores. This study develops and tests a model explaining franchisees' performance antecedents and their intention to remain in the franchise system. The model describes how franchisees' strategies relate to knowledge sharing, trust, conflict management, brand reputation, and performance in chain stores. The study uses data from 246 active franchisees from a chain-store franchise system in Taiwan. Data analysis uses structural equation modeling (SEM) and fuzzy set qualitative comparative analysis (fsQCA). Results show that knowledge sharing, trust, conflict management, and brand reputation are key factors in reinforcing franchisees' intention to remain and financial performance within the franchise system. The study ends with a discussion of theoretical and managerial implications.

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  • Wu, Chih-Wen, 2015. "Antecedents of franchise strategy and performance," Journal of Business Research, Elsevier, vol. 68(7), pages 1581-1588.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:7:p:1581-1588
    DOI: 10.1016/j.jbusres.2015.01.055
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    3. Dubey, Vivek K. & Matthes, Joseph M. & Saini, Amit, 2023. "Impact of socioeconomic values collaboration on performance in franchising," Journal of Business Research, Elsevier, vol. 162(C).
    4. Boulay, Jacques & Caemmerer, Barbara & Evanschitzky, Heiner & Duniach, Krista, 2020. "Multi-unit franchising from franchisor and franchisee perspectives: Antecedents, performance outcomes, and the optimal mini-chain size," Journal of Business Research, Elsevier, vol. 113(C), pages 49-58.
    5. Rosado-Serrano, Alexander & Paul, Justin & Dikova, Desislava, 2018. "International franchising: A literature review and research agenda," Journal of Business Research, Elsevier, vol. 85(C), pages 238-257.
    6. Prentice, Catherine & Handsjuk, Nikolai, 2016. "Insights into Vodka consumer attitude and purchasing behaviors," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 7-14.
    7. Yu Liu & Hao Zhang, 2022. "Driving Sustainable Innovation in New Ventures: A Study Based on the fsQCA Approach," Sustainability, MDPI, vol. 14(9), pages 1-21, May.
    8. Sascha Kraus & Domingo Ribeiro-Soriano & Miriam Schüssler, 2018. "Fuzzy-set qualitative comparative analysis (fsQCA) in entrepreneurship and innovation research – the rise of a method," International Entrepreneurship and Management Journal, Springer, vol. 14(1), pages 15-33, March.
    9. Perrigot, Rozenn & López-Fernández, Begoña & Basset, Guy, 2020. "“Conflict-performance assumption†or “performance-conflict assumption†: Insights from franchising," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    10. Eunkyung Lee & Ji-Hern Kim & Chang Seop Rhee, 2021. "Effects of Marketing Decisions on Brand Equity and Franchise Performance," Sustainability, MDPI, vol. 13(6), pages 1-15, March.
    11. Vinay Kumar Garg, 2019. "An Examination of the Persistent Effects of Franchising Strategy on Large Chains," Business and Economic Research, Macrothink Institute, vol. 9(1), pages 33-44, March.
    12. Francesco Chirico & Dianne H. B. Welsh & R. Duane Ireland & Philipp Sieger, 2021. "Family versus Non‐Family Firm Franchisors: Behavioural and Performance Differences," Journal of Management Studies, Wiley Blackwell, vol. 58(1), pages 165-200, January.
    13. Chin-Chiung KUO & Chi-Fang LIU, 2017. "A Review of Franchising Research in Taiwan Social Science Citation Index (TSSCI) Database," Journal of Economics Library, KSP Journals, vol. 4(2), pages 227-237, June.
    14. Gillis, William E. & Combs, James G. & Yin, Xiaoli, 2020. "Franchise management capabilities and franchisor performance under alternative franchise ownership strategies," Journal of Business Venturing, Elsevier, vol. 35(1).

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