Should Fast-Food Franchisees Pursue Entrepreneurial Orientation?

Asgharian Ehsan, Tasavori Misagh () and Andersén Jim ()
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Asgharian Ehsan: Graduated from Linköping University, Linköping, Sweden
Tasavori Misagh: Graduate School of Management and Economics, Sharif University of Technology, Tehran, Iran
Andersén Jim: School of Business, University of Skövde, Skövde, Sweden

Entrepreneurship Research Journal, 2023, vol. 13, issue 2, 185-220

Abstract: Although it is widely accepted that entrepreneurial orientation (EO) improves firm performance, scholars have advised that particular attention should be paid to the context. In this research, we investigate a less explored context of franchising where business systems and procedures are usually dictated to franchisees by franchisors. Therefore, whether a franchisor should allow franchisees to pursue EO (innovativeness, proactiveness, risk-taking, competitive aggressiveness, and autonomy) is not clear. In the context of franchising, the majority of prior studies have mainly focused on the employment of EO as a unidimensional construct and at the franchisor level. In this research, we take a bottom-up perspective and evaluate the impact of different dimensions of EO on franchisees’ performance. Our analysis of a multi-group of 183 restaurant franchisees located in Sweden and Iran reveals that only the pursuit of proactiveness and competitive aggressiveness improves a franchisee’s performance and other dimensions do not play a significant role in improving performance in this context.

Keywords: entrepreneurial orientation; franchising; franchisee performance; restaurant industry (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1515/erj-2019-0377

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