Entrepreneurial process in franchised outlets
2013 (English)In: Journal of WEI Business and Economics, ISSN 2166-7918 (online); 2166-8477 (CD-ROM), Vol. 2, no 1, 59-71 p.Article in journal (Other academic) Published
Although in recent years the study of franchise systems has been the subject of many academic studies, most of them have studied franchise systems from the franchisor's point of view, and the franchisee point of view has received only limited attention. Researchers in business fields have adopted four main perspectives in the study of franchising: strategy, economics, marketing, and entrepreneurship. From an entrepreneurship perspective, while there is no doubt about considering a franchisor's business as an entrepreneurial firm, considering the franchisee's activities during the running and managing of an outlet as an entrepreneurial firm is disputed. An entrepreneurial firm includes involvement in product innovation, commitment to calculated risk, proactiveness and aggressiveness. While the diversity of definitions about entrepreneurship has caused a problem to understand what an entrepreneurial firm is, a process-focused approach offers much unexplored potential for understanding the nature of entrepreneurship in entrepreneurial firms. Therefore, due to the pivotal role of an entrepreneurial process in the nature of entrepreneurship, and considering the entrepreneurial process as the core unit of analysis in entrepreneurial firms, this article aims to study what happens during the entrepreneurial process in a franchised outlet. This study shows, although franchisees are restricted about product innovation, and franchisor reduces the risk of business for them, the franchisor never can omit the risk for franchisee. Moreover, many product innovations in the franchise system stem from the franchisee's ideas, and the franchisor will never be able to eliminate the risk for the franchisees. The franchisee's business also encompasses all dimensions of the entrepreneurial process as the unique features of entrepreneurial firms.
Place, publisher, year, edition, pages
2013. Vol. 2, no 1, 59-71 p.
Franchising, entrepreneurial firm, entrepreneurial opportunity, entrepreneurial process, risk-taking
Engineering and Technology Economics and Business
IdentifiersURN: urn:nbn:se:liu:diva-103322OAI: oai:DiVA.org:liu-103322DiVA: diva2:688373