Family versus Non‐Family Firm Franchisors: Behavioural and Performance Differences

Francesco Chirico, Dianne H. B. Welsh, R. Duane Ireland and Philipp Sieger

Journal of Management Studies, 2021, vol. 58, issue 1, 165-200

Abstract: Drawing from resource‐based theory, we argue that family firm franchisors behave and perform differently compared to non‐family firm franchisors. Our theorizing suggests that compared to a non‐family firm franchisor, a family firm franchisor cultivates stronger relationships with franchisees and provides them with more training. Yet, we predict that a family firm franchisor achieves lower performance than a non‐family firm franchisor. We argue, however, that this performance relationship reverses itself when family firm franchisors are older and larger. We test our hypotheses with a longitudinal dataset including a matched‐pair sample of private U.S. family and non‐family firm franchisors.

Date: 2021
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