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A Review of Evolutionary Theories in Sustainability related to the Franchise System

Author

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  • Norazman Saharum
  • Ahmad Rahman Songip
  • Nurul Fadly Habidin
  • Mas Bambang Baroto

Abstract

The study aims behind this review is to explore and clarify the evolution of theories towards sustainability in the franchising industry system. This review examined four theories related to franchising prospectively, namely stakeholder management theory, seven levels of sustainability theory, the sustainable value framework theory and the blue ocean strategy theory. These four theories have been used by many researchers to help clarify the need for the advancement of sustainable management. None of those theories seem to have the unique features, benefits and opportunities to overcome issues of sustainability in the franchise system. However, these ideas and theories are changing from time to time to suit the needs and demand in the business world. On the other hand, from the franchise perspective, some researchers are claimed to have failed to develop the basis of management as the human ability is only limited to, the ability of managing the strategy, structure and system which are constantly changing over time. The author hope this article starts an exchange among franchisor and franchisee to better describe, create, and apply the related new idea to move toward the franchising industry as definitely , effectively, and urgently as possible. We learned that the biggest challenges towards sustainability on franchise system are the creation of a straightforward clear model, the work value of franchisor and franchisee to a different operationally-wise and commercially-wise culture and the ability to focus on supporting the whole network.

Suggested Citation

  • Norazman Saharum & Ahmad Rahman Songip & Nurul Fadly Habidin & Mas Bambang Baroto, 2017. "A Review of Evolutionary Theories in Sustainability related to the Franchise System," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(4), pages 756-771, April.
    • Handle: RePEc:hur:ijarbs:v:7:y:2017:i:4:p:756-771
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    References listed on IDEAS

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