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Entrepreneurial Failure: The Case of Franchisees

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  • Steven C. Michael
  • James G. Combs

Abstract

The causes of failure are central to entrepreneurship research. This study extends agency and resource‐based logic to explain how established franchisors affect franchisee failure. Analysis of 88 restaurant chains shows that franchisors reduce franchisee failure through contract design and by building strategic resources. Thus, franchisors' resource management and contractual policies play a key role in franchisees' survival.

Suggested Citation

  • Steven C. Michael & James G. Combs, 2008. "Entrepreneurial Failure: The Case of Franchisees," Journal of Small Business Management, Taylor & Francis Journals, vol. 46(1), pages 73-90, January.
    • Handle: RePEc:taf:ujbmxx:v:46:y:2008:i:1:p:73-90
    DOI: 10.1111/j.1540-627X.2007.00232.x
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    Cited by:

    1. Costa, Paula L. & Ferreira, João J. & Torres de Oliveira, Rui, 2023. "From entrepreneurial failure to re-entry," Journal of Business Research, Elsevier, vol. 158(C).
    2. Dubey, Vivek K. & Matthes, Joseph M. & Saini, Amit, 2023. "Impact of socioeconomic values collaboration on performance in franchising," Journal of Business Research, Elsevier, vol. 162(C).
    3. Samuel Pierre & Jocelin Dupénor & Raymond Kernizan & Marc-Donald Vincent & Stéphane Dauphin-Pierre & Jimmy Pierre, 2023. "Analysis of an Entrepreneurial Ecosystem in Northern Haiti to Stimulate Innovation and Reduce Poverty," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(2_suppl), pages 117-141, November.
    4. Luiz Antonio de Camargo Guerrazzi & Fernando Antonio Ribeiro Serra & Manuel Portugal Ferreira & Vanessa Vasconcelos Scazziota, 2022. "Using Meta-Analytic Structural Equation Modelling to Advance Entrepreneurship Research: A Study on the Liabilities of Newness and Smallness," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 31(3), pages 603-631, November.

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