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The Dimensions of Entrepreneurial Orientation in Franchise Networks: Exploring the Role of Franchisee Associations

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  • Peter Balsarini

    (School of Business and Law, Edith Cowan University, Joondalup, WA 6027, Australia)

  • Claire Lambert

    (School of Business and Law, Edith Cowan University, Joondalup, WA 6027, Australia)

Abstract

This study explores how a state-based franchisee association of a multinational quick-service restaurant franchisor introduced three world-first innovations through the activation of the five dimensions of entrepreneurial orientation (EO). The antecedents to this activation were also explored. A historical extended case study focusing on a revelatory case was undertaken. In-depth analysis using a rigorous qualitative methodology was facilitated by the triangulation of informant interviews, publicly available data, archival data, and artefacts. The three innovations explored involved the apparent activation of all five dimensions of EO by the franchisee association. The franchisee association’s structure and the provenance of its franchisee members, in being either externally recruited or internally recruited, appeared to have a bearing on whether product or process innovations were pursued. Five antecedents that enhance the propensity of franchisee associations to activate the dimensions of EO were also identified, and a preliminary model was constructed. Whilst the EO of franchisors and franchisees has previously been examined, this study is the first to explore franchisee associations as a vehicle for EO. With around 75% of franchisors incorporating some form of franchisee association, better understanding how to harness their innovative potential could bestow a competitive advantage upon those franchise systems able to do so.

Suggested Citation

  • Peter Balsarini & Claire Lambert, 2023. "The Dimensions of Entrepreneurial Orientation in Franchise Networks: Exploring the Role of Franchisee Associations," Administrative Sciences, MDPI, vol. 14(1), pages 1-18, December.
    • Handle: RePEc:gam:jadmsc:v:14:y:2023:i:1:p:2-:d:1303096
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    References listed on IDEAS

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    1. Johan Wiklund & Dean A. Shepherd, 2011. "Where to from Here? EO-as-Experimentation, Failure, and Distribution of Outcomes," Entrepreneurship Theory and Practice, , vol. 35(5), pages 925-946, September.
    2. Jeffrey G. Covin & Danny Miller, 2014. "International Entrepreneurial Orientation: Conceptual Considerations, Research Themes, Measurement Issues, and Future Research Directions," Entrepreneurship Theory and Practice, , vol. 38(1), pages 11-44, January.
    3. Alaydi, Sharif & Buck, Trevor & Tang, Yee Kwan, 2021. "Strategic responses to extreme institutional challenges: An MNE case study in the Palestinian mobile phone sector," International Business Review, Elsevier, vol. 30(3).
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