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When do franchisors select entrepreneurial franchisees? An organizational identity perspective

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  • Watson, Anna
  • Dada, Olufunmilola (Lola)
  • Grünhagen, Marko
  • Wollan, Melody L.

Abstract

In spite of the acknowledged importance of the franchisee selection process, only a few empirical studies have examined this research area. This paper employs organizational identity theory to explain when the franchisor desires to select specifically franchisees that have the potential for entrepreneurial behavior. A mail questionnaire survey was utilized to collect data from a sample of franchisors in the UK. The results revealed that the systems that select entrepreneurial franchisees are those that have entrepreneurial values as part of their organizational identity, as reflected in the institutionalized support given by the franchisor for entrepreneurial activities. Additionally, we found that the performance of the franchise system is positively affected where the franchisor seeks to select franchisees whose entrepreneurial values are congruent with those of the system.

Suggested Citation

  • Watson, Anna & Dada, Olufunmilola (Lola) & Grünhagen, Marko & Wollan, Melody L., 2016. "When do franchisors select entrepreneurial franchisees? An organizational identity perspective," Journal of Business Research, Elsevier, vol. 69(12), pages 5934-5945.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:12:p:5934-5945
    DOI: 10.1016/j.jbusres.2016.05.006
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    5. Carlos Poblete & Felipe Rifo & Joana Huaman, 2021. "The Role of Circular Business Modeling in the Entrepreneurial Identity-Construction Process," Sustainability, MDPI, vol. 13(23), pages 1-25, December.
    6. Lanchimba, Cintya & Welsh, Dianne H.B. & Fadairo, Muriel & Silva, Vivian-Lara D.S., 2021. "The impact of franchisor signaling on entrepreneurship in emerging markets," Journal of Business Research, Elsevier, vol. 131(C), pages 337-348.
    7. Semrau, Thorsten & Biemann, Torsten, 2022. "When sergeants can outrank generals: Person-organization fit and the performance of franchisees as agents of their franchisor," Journal of Business Venturing, Elsevier, vol. 37(2).
    8. Fu-Sheng TSAI & Chin-Chiung KUO & Chi-Fang LIU, 2017. "Knowledge-based View in the Franchising Research Literature," Journal of Economic and Social Thought, KSP Journals, vol. 4(1), pages 97-107, March.

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