When do franchisors select entrepreneurial franchisees? An organizational identity perspective

Anna Watson, Dada, Olufunmilola (Lola), Marko Grünhagen and Melody L. Wollan

Journal of Business Research, 2016, vol. 69, issue 12, 5934-5945

Abstract: In spite of the acknowledged importance of the franchisee selection process, only a few empirical studies have examined this research area. This paper employs organizational identity theory to explain when the franchisor desires to select specifically franchisees that have the potential for entrepreneurial behavior. A mail questionnaire survey was utilized to collect data from a sample of franchisors in the UK. The results revealed that the systems that select entrepreneurial franchisees are those that have entrepreneurial values as part of their organizational identity, as reflected in the institutionalized support given by the franchisor for entrepreneurial activities. Additionally, we found that the performance of the franchise system is positively affected where the franchisor seeks to select franchisees whose entrepreneurial values are congruent with those of the system.

Keywords: Entrepreneurial franchisee selection; Organizational identity; Franchisor support; Franchise system performance (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:69:y:2016:i:12:p:5934-5945

DOI: 10.1016/j.jbusres.2016.05.006

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