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To be entrepreneurial, or not to be entrepreneurial? Explaining differences in franchisee entrepreneurial behavior within a franchise system

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  • Evelien P. M. Croonen

    (University of Groningen)

  • Maryse J. Brand

    (University of Groningen)

  • Eelko K. R. E. Huizingh

    (University of Groningen)

Abstract

Although franchising scholars largely acknowledge that franchisees may behave like entrepreneurs, little is known about whether and why franchisees differ in their entrepreneurial behaviors. Franchisees are semi-autonomous entrepreneurs running geographically dispersed units within established organizations. We therefore use corporate entrepreneurship (CE) literature to define and measure franchisee entrepreneurial behavior, and we build on an entrepreneurial motivation framework to develop an integrative set of hypotheses that explain differences in franchisee entrepreneurial behavior. We test these hypotheses using survey data on 119 franchisees within a single Dutch franchise system. Our results show that the extent of franchisee entrepreneurial behavior varies considerably, even within a single franchise system. The differences in franchisees’ entrepreneurial behaviors can be explained by differences in franchisees’ intrinsic goals, relational satisfaction and local competition.

Suggested Citation

  • Evelien P. M. Croonen & Maryse J. Brand & Eelko K. R. E. Huizingh, 2016. "To be entrepreneurial, or not to be entrepreneurial? Explaining differences in franchisee entrepreneurial behavior within a franchise system," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 531-553, June.
    • Handle: RePEc:spr:intemj:v:12:y:2016:i:2:d:10.1007_s11365-014-0352-1
    DOI: 10.1007/s11365-014-0352-1
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    Cited by:

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    2. Antonios Karatzas & Georgios Papadopoulos & Janet Godsell, 2020. "Servitization and the Effect of Training on Service Delivery System Performance," Production and Operations Management, Production and Operations Management Society, vol. 29(5), pages 1101-1121, May.
    3. Perrigot, Rozenn & Basset, Guy, 2018. "Resale pricing in franchised stores: A franchisor perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 209-217.
    4. Ritala, Paavo & Baiyere, Abayomi & Hughes, Mathew & Kraus, Sascha, 2021. "Digital strategy implementation: The role of individual entrepreneurial orientation and relational capital," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    5. Jafari-Sadeghi, Vahid & Amoozad Mahdiraji, Hannan & Alam, Gazi Mahabubul & Mazzoleni, Alberto, 2023. "Entrepreneurs as strategic transformation managers: Exploring micro-foundations of digital transformation in small and medium internationalisers," Journal of Business Research, Elsevier, vol. 154(C).
    6. Peter Balsarini & Claire Lambert & Maria M. Ryan & Martin MacCarthy, 2021. "Subjective Knowledge, Perceived Risk, and Information Search when Purchasing a Franchise: A Comparative Exploration from Australia," JRFM, MDPI, vol. 14(8), pages 1-17, July.
    7. Sascha Kraus & Matthias Breier & Paul Jones & Mathew Hughes, 2019. "Individual entrepreneurial orientation and intrapreneurship in the public sector," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1247-1268, December.
    8. Michael Mustafa & Fiona Gavin & Mathew Hughes, 2018. "Contextual Determinants of Employee Entrepreneurial Behavior in Support of Corporate Entrepreneurship: A Systematic Review and Research Agenda," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 26(03), pages 285-326, September.

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