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Strategic Direction and Sustainable Development in Franchising Organizations: A Conceptual Study

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Listed:
  • Fauziah Samsudin
  • Sazali A. Wahab
  • Ahmad S. A. Latiff
  • Suzana I. W. Osman
  • Nur F. M. Zawawi
  • Syed A. Fazal

Abstract

Franchising is viewed as a significant industry in contributing to the global economic development by generating an average of $3.7 billion in annual franchise sales from 40 countries and provides over 18 million jobs opportunities. Due to the expansion of franchise business markets in Malaysia, the number of franchise outlets keeps increasing more than doubled within six years, with total 10720 outlets in 2010 to 23140 outlets in 2016. To intensify the continuance of this expanding process, franchise entrepreneurs need to conserve a sustainable creative value in undergoing the challenging of the business environment. The limitations of internal and external factors such as core capability, government support and other related dimensions affect the stability of franchise organization. This paper pursues to explore the related existing literature and underpinning theories that reinforce the sustainable development of franchise business. Most of the franchise models are captured in the different analysis of dimensions and strategies on sustainable development goals. The objective of this study is to conceptualize the strategic direction practices and propose a theoretical framework of sustainable franchising that can help the continuance of franchise business. Therefore, by supporting and participation of stakeholders, entrepreneurs, academicians, researchers, and governments, future analysis can develop and expose a sustainable model of franchising.

Suggested Citation

  • Fauziah Samsudin & Sazali A. Wahab & Ahmad S. A. Latiff & Suzana I. W. Osman & Nur F. M. Zawawi & Syed A. Fazal, 2018. "Strategic Direction and Sustainable Development in Franchising Organizations: A Conceptual Study," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 11(4), pages 1-89, July.
    • Handle: RePEc:ibn:jsd123:v:11:y:2018:i:4:p:89
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    References listed on IDEAS

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    1. Renáta Kosová & Francine Lafontaine, 2010. "Survival And Growth In Retail And Service Industries: Evidence From Franchised Chains," Journal of Industrial Economics, Wiley Blackwell, vol. 58(3), pages 542-578, September.
    2. Arturs Kalnins, 2005. "Overestimation and Venture Survival: An Empirical Analysis of Development Commitments in International Master Franchising Ventures," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(4), pages 933-953, December.
    3. Frazer, Lorelle & Winzar, Hume, 2005. "Exits and expectations: why disappointed franchisees leave," Journal of Business Research, Elsevier, vol. 58(11), pages 1534-1542, November.
    4. Marko Grünhagen & Michael J. Dorsch, 2003. "Does the Franchisor Provide Value to Franchisees? Past, Current, and Future Value Assessments of Two Franchisee Types," Journal of Small Business Management, Taylor & Francis Journals, vol. 41(4), pages 366-384, October.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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