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Family versus Non‐Family Firm Franchisors: Behavioural and Performance Differences

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  • Francesco Chirico
  • Dianne H. B. Welsh
  • R. Duane Ireland
  • Philipp Sieger

Abstract

Drawing from resource‐based theory, we argue that family firm franchisors behave and perform differently compared to non‐family firm franchisors. Our theorizing suggests that compared to a non‐family firm franchisor, a family firm franchisor cultivates stronger relationships with franchisees and provides them with more training. Yet, we predict that a family firm franchisor achieves lower performance than a non‐family firm franchisor. We argue, however, that this performance relationship reverses itself when family firm franchisors are older and larger. We test our hypotheses with a longitudinal dataset including a matched‐pair sample of private U.S. family and non‐family firm franchisors.

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  • Francesco Chirico & Dianne H. B. Welsh & R. Duane Ireland & Philipp Sieger, 2021. "Family versus Non‐Family Firm Franchisors: Behavioural and Performance Differences," Journal of Management Studies, Wiley Blackwell, vol. 58(1), pages 165-200, January.
    • Handle: RePEc:bla:jomstd:v:58:y:2021:i:1:p:165-200
    DOI: 10.1111/joms.12567
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