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Franchising: the dilemma between standardisation and flexibility

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  • Manuela Pardo-del-Val
  • Clara Martínez-Fuentes
  • José Ignacio López-Sánchez
  • Beatriz Minguela-Rata

Abstract

Both standardisation and flexibility are naturally linked to franchising and the balance between them has become an important research issue. Literature states that cost minimisation, brand image and innovation are the main reasons that push towards standardisation, while flexibility is claimed (for those that advocate for it) in order to achieve a higher adaptation to local markets and enhance franchisees' entrepreneurial attitudes. This research will focus on the computer retail sector to find out how franchise networks in services settle this dilemma. Here, franchisors have decided to focus on economies of scale and strong common corporate image as key goals and thus allow franchisees to be flexible with any other variables that do not affect their main objectives, mainly by adding a complementary product and services portfolio. Results suggest that those resources and capabilities which sustain a competitive advantage are more susceptible to being standardised in franchising, opening an interesting research line through the Resource-Based View.

Suggested Citation

  • Manuela Pardo-del-Val & Clara Martínez-Fuentes & José Ignacio López-Sánchez & Beatriz Minguela-Rata, 2014. "Franchising: the dilemma between standardisation and flexibility," The Service Industries Journal, Taylor & Francis Journals, vol. 34(9-10), pages 828-842, July.
    • Handle: RePEc:taf:servic:v:34:y:2014:i:9-10:p:828-842
    DOI: 10.1080/02642069.2014.905925
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    References listed on IDEAS

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    1. Morimura, Fumikazu & Sakagawa, Yuji, 2018. "Information technology use in retail chains: Impact on the standardisation of pricing and promotion strategies and performance," Journal of Retailing and Consumer Services, Elsevier, vol. 45(C), pages 81-91.
    2. Rozenn Perrigot & Begoña López-Fernández & Guy Basset & Olivier Herrbach, 2020. "Resale pricing as part of franchisor know-how," Post-Print halshs-02566446, HAL.
    3. Omar Chehab & Shiva Ilkhanizadeh & Mona Bouzari, 2021. "Impacts of Job Standardisation on Restaurant Frontline Employees: Mediating Effect of Emotional Labour," Sustainability, MDPI, vol. 13(3), pages 1-17, February.
    4. Navarro Sanfelix, Guillermo & Puig, Francisco, 2017. "New challenges in franchisor-franchisee relationship. An analysis from agency theory perspective," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).

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