Sustainable Competitive Advantage for Multi-Unit Franchising: From the Taiwanese Franchise Market Perspectives

Chen-I Huang, Yung-Fu Huang, Manh-Hoang Do () and Thi-Lien-Huong Nguyen
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Chen-I Huang: School of International Business, Tan Kah Kee College, Xiamen University, Zhangzhou 363105, China
Yung-Fu Huang: Department of Marketing and Logistics Management, Chaoyang University of Technology, Taichung 413310, Taiwan
Manh-Hoang Do: Department of Marketing and Logistics Management, Chaoyang University of Technology, Taichung 413310, Taiwan
Thi-Lien-Huong Nguyen: Faculty of Finance and Banking, Thuongmai University, Hanoi 100000, Vietnam

Sustainability, 2023, vol. 15, issue 21, 1-17

Abstract: Franchising is a widely adopted business format in both product-based and service-based industries. Particularly, the concept of multi-unit franchising has become increasingly prominent as a favored expansion strategy for both franchisors and franchisees. To sustain a competitive advantage, it is crucial for franchisees to establish a network of local outlets. This study delves into the strategies employed by multi-unit franchisees in the Taiwanese estate agency sector, using the theory of sustainable competitive advantage as a framework. The research design for this study is qualitative, employing in-depth interviews as the primary method of data collection, with grounded theory used for analysis. The findings reveal that ownership patterns play a crucial role in determining sustainable competitive advantage. Furthermore, the existence of both explorative and exploitative capabilities was identified as the foundation for establishing local leadership and ensuring a sustainable advantage. Importantly, sustainable competitive advantage is achieved through the local leader determinant. As a result, four propositions have been developed, which hold essential practical implications for top managers. Especially in the digital era, information asymmetry is diminishing, and cooperation becomes the key to creating synergies.

Keywords: chain store; sustainable competitive advantage; multi-unit franchising; estate agency (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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