The effect of entrepreneurial orientation on the franchise relationship

Dada, O.; Watson, A.

Abstract

This article aims to understand how the entrepreneurial orientation (EO) of the franchise system may impact franchisor–franchisee relationship quality, given the conflicting forces for standardization/uniformity and franchisee desire for autonomy. A cross-sectional research design, involving a mail questionnaire survey, was employed to collect data from a sample of franchisors operating in the UK. The hypotheses specified in the study were tested using regression (including moderated regression) analyses. The results revealed that EO was significantly and positively related to relationship quality (as perceived by the franchisor). In addition, the recruitment of entrepreneurial franchisees was found to have a positively significant impact on relationship quality. The structural support systems used by franchisors to encourage franchisee entrepreneurial activities were not found to moderate the relationship between EO and relationship quality. The results suggest that systems with EO and entrepreneurial franchisees may enjoy better relations.

Citation

Dada, O., & Watson, A. (2013). The effect of entrepreneurial orientation on the franchise relationship. International Small Business Journal, 31(8), 955-977. https://doi.org/10.1177/0266242612446035

• Journal Article Type: Article
• Online Publication Date: Sep 20, 2012
• Publication Date: 2013-12
• Deposit Date: Jul 8, 2021
• Journal: International Small Business Journal
• Print ISSN: 0266-2426
• Publisher: SAGE Publications
• Peer Reviewed: Peer Reviewed
• Volume: 31
• Issue: 8
• Pages: 955-977
• DOI: https://doi.org/10.1177/0266242612446035
• Keywords: Entrepreneurial orientation, franchise relationship, franchisee selection, franchise structural support systems
• Public URL: http://researchrepository.napier.ac.uk/Output/2777152