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Should fast-food franchisees pursue entrepreneurial orientation?

Asgharian, E ; Sharif University of Technology | 2021

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  1. Type of Document: Article
  2. DOI: 10.1515/erj-2019-0377
  3. Publisher: De Gruyter Open Ltd , 2021
  4. Abstract:
  5. 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. © 2021 Walter de Gruyter GmbH, Berlin/Boston
  6. Keywords:
  7. Entrepreneurial orientation -- ; Franchising ; Franchisee performance ; Restaurant industry
  8. Source: Entrepreneurship Research Journal ; 2021 ; 21946175 (ISSN)
  9. URL: https://www.degruyter.com/document/doi/10.1515/erj-2019-0377/html