Examining the Drivers for Franchised Chains Performance through the Lens of the Dynamic Capabilities Approach

Authors

  • Assâad El Akremi,

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    • Assâad EL Akremi is Associate Professor in Université de Toulouse 1—Capitole, CRM (UMR 5303 CNRS).
  • Rozenn Perrigot,

    Corresponding author
    • Address correspondence to: Rozenn Perrigot, Graduate School of Management (IGR-IAE), University of Rennes 1, 11, rue Jean Macé, CS 70803, 35708 Rennes Cedex, France. E-mail: rozenn.perrigot@univ-rennes1.fr.

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    • Rozenn Perrigot is Associate Professor at the Graduate School of Management (IGR-IAE)—University of Rennes 1, Affiliate Professor at ESC Rennes School of Business, and Research at CREM UMR CNRS 6211.
  • Isabelle Piot-Lepetit

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    • Isabelle Piot-Lepetit is Senior Researcher Fellow in Economics at INRA UMR 1110 MOISA, Montpellier.

  • We gratefully acknowledge the support of the French National Research Agency (ANR-12-BSH1-0011-01—ANR FRANBLE) and the Human Sciences Institute in Brittany (MSHB-FRANNET). We thank Editor Marko Grünhagen and the anonymous reviewers for their comments. We are also grateful to Gérard Cliquet, Begoña López Fernández, and Kelly Prioux for their suggestions, and the participants at the 4th International Conference on Economics and Management of Networks (2009) for their comments on a preliminary draft.

Abstract

This paper draws on the dynamic capabilities approach to explain the performance of franchised chains. This approach is a useful lens to understand why some chains are more likely to drive superior performance than others. Hence, using this theoretical lens, we explore why and how several characteristics of franchised chains influence sales performance. This study includes 189 retail and service chains operating in the United States. Findings show that experience before franchising, length of training, chain age, franchising fees, and level of internationalization positively impact performance of franchised chains, whereas the proportion of franchised units has a curvilinear influence (inverted-U shape) on chains' performance. Implications for franchising scholars and practitioners are discussed.

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