IDEAS home Printed from https://ideas.repec.org/a/sae/globus/v22y2021i2p311-347.html
   My bibliography  Save this article

Managing a Mission-driven Franchise Organization: An Empirical Investigation of Organizational Practice and Individual Outcomes

Author

Listed:
  • Anant Deshpande
  • David Tsai

Abstract

The purpose of this research is to investigate the interplay among organizational practice, the adoption of a management philosophy and individual outcomes in a mission-driven multinational education franchise system. A sample of 1,700 potential survey participants throughout the focal organization in both Canada and the United States was used, including 1,282 franchisees and 418 employees. A total of 152 responses were received, including 83 responses from franchisees and 69 responses from corporate employees. The findings of the study provide evidence that the adoption of a management philosophy will mediate the relationships between a philosophy-oriented organizational practice and the individual outcomes in the context of a mission-driven education industry franchise–franchisor setup in North America. One obvious limitation is that the data collection was conducted from within a single organization. The findings of the study are specific to the North American region. Hence, the generalizability is limited. The article builds upon Wang’s (  Journal of Business , 2011, Ethics , 101(1), 111–126) study by adding new measures. The empirical evidence of the study confirms that it is possible for a franchise organization to utilize corporate mission and management philosophy to govern a high level of unity between all stakeholders in a franchise system.

Suggested Citation

  • Anant Deshpande & David Tsai, 2021. "Managing a Mission-driven Franchise Organization: An Empirical Investigation of Organizational Practice and Individual Outcomes," Global Business Review, International Management Institute, vol. 22(2), pages 311-347, April.
    • Handle: RePEc:sae:globus:v:22:y:2021:i:2:p:311-347
    DOI: 10.1177/0972150918814102
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0972150918814102
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0972150918814102?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. José M. Ramírez-Hurtado & Francisco J. Rondán-Cataluña & Flor M. Guerrero-Casas & Juan M. Berbel-Pineda, 2011. "Identifying the franchisee profiles franchisors prefer," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 12(4), pages 567-588, May.
    2. Paulo Furquim de Azevedo, 2009. "Allocation of Authority in Franchise Chains," International Studies of Management & Organization, Taylor & Francis Journals, vol. 39(4), pages 31-42, January.
    3. Evelien Croonen, 2010. "Trust and Fairness During Strategic Change Processes in Franchise Systems," Journal of Business Ethics, Springer, vol. 95(2), pages 191-209, August.
    4. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    5. Brickley, James A. & Dark, Frederick H., 1987. "The choice of organizational form The case of franchising," Journal of Financial Economics, Elsevier, vol. 18(2), pages 401-420, June.
    6. Juliet Cox & Colin Mason, 2009. "Franchise network restructuring: Pressures, constraints and mechanisms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 21(5-6), pages 503-527, September.
    7. Chun-Hsi Chen & Setyabudi Indartono, 2011. "Study of Commitment Antecedents: The Dynamic Point of View," Journal of Business Ethics, Springer, vol. 103(4), pages 529-541, November.
    8. Karianne Kalshoven & Deanne Den Hartog & Annebel De Hoogh, 2011. "Ethical Leader Behavior and Big Five Factors of Personality," Journal of Business Ethics, Springer, vol. 100(2), pages 349-366, May.
    9. Prabhjot Kaur Mahal, 2012. "HR Practices as Determinants of Organizational Commitment and Employee Retention," The IUP Journal of Management Research, IUP Publications, vol. 0(4), pages 37-53, October.
    10. Giovanni Dosi & Luigi Marengo, 2007. "On the Convergence of Evolutionary and Behavioral Theories of Organizations: A Tentative Roadmap," LEM Papers Series 2007/01, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    11. Altinay, Levent & Brookes, Maureen & Madanoglu, Melih & Aktas, Gurhan, 2014. "Franchisees' trust in and satisfaction with franchise partnerships," Journal of Business Research, Elsevier, vol. 67(5), pages 722-728.
    12. Shaikh, Ateeque, 2016. "Conceptualizing fairness in franchisor–franchisee relationship: Dimensions, definitions and preliminary construction of scale," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 28-35.
    13. James Davis & John Ruhe & Monle Lee & Ujvala Rajadhyaksha, 2007. "Mission Possible: Do School Mission Statements Work?," Journal of Business Ethics, Springer, vol. 70(1), pages 99-110, January.
    14. Jérôme Barthélemy, 2008. "Opportunism, knowledge, and the performance of franchise chains," Strategic Management Journal, Wiley Blackwell, vol. 29(13), pages 1451-1463, December.
    15. Brown, Michael E. & Trevino, Linda K. & Harrison, David A., 2005. "Ethical leadership: A social learning perspective for construct development and testing," Organizational Behavior and Human Decision Processes, Elsevier, vol. 97(2), pages 117-134, July.
    16. Joel Adame Tinti & Luciano Venelli-Costa & Almir Martins Vieira & Alexandre Cappellozza, 2017. "The impact of human resources policies and practices on organizational citizenship behaviors," Brazilian Business Review, Fucape Business School, vol. 14(6), pages 636-653, November.
    17. Christopher Kenneth, Mark C. Bart Baetz, 1998. "The Relationship Between Mission Statements and Firm Performance: An Exploratory Study," Journal of Management Studies, Wiley Blackwell, vol. 35(6), pages 823-853, November.
    18. Phan, Phillip H. & Butler, John E. & Lee, Soo H., 1996. "Crossing mother: Entrepreneur-franchisees' attempts to reduce franchisor influence," Journal of Business Venturing, Elsevier, vol. 11(5), pages 379-402, September.
    19. Andrew C. Inkpen & Steven C. Currall, 2004. "The Coevolution of Trust, Control, and Learning in Joint Ventures," Organization Science, INFORMS, vol. 15(5), pages 586-599, October.
    20. Baucus, David A. & Baucus, Melissa S. & Human, Sherrie E., 1996. "Consensus in franchise organizations: A cooperative arrangement among entrepreneurs," Journal of Business Venturing, Elsevier, vol. 11(5), pages 359-378, September.
    21. Dant, Rajiv P. & Gundlach, Gregory T., 1999. "The challenge of autonomy and dependence in franchised channels of distribution," Journal of Business Venturing, Elsevier, vol. 14(1), pages 35-67, January.
    22. Ertz, Myriam & Karakas, Fahri & Sarigöllü, Emine, 2016. "Exploring pro-environmental behaviors of consumers: An analysis of contextual factors, attitude, and behaviors," Journal of Business Research, Elsevier, vol. 69(10), pages 3971-3980.
    23. Kaufmann, Patrick J. & Eroglu, Sevgin, 1999. "Standardization and adaptation in business format franchising," Journal of Business Venturing, Elsevier, vol. 14(1), pages 69-85, January.
    24. Davies, Mark A.P. & Lassar, Walfried & Manolis, Chris & Prince, Melvin & Winsor, Robert D., 2011. "A model of trust and compliance in franchise relationships," Journal of Business Venturing, Elsevier, vol. 26(3), pages 321-340, May.
    25. Yoon Jik Cho & Hanjun Park, 2011. "Exploring the Relationships Among Trust, Employee Satisfaction, and Organizational Commitment," Public Management Review, Taylor & Francis Journals, vol. 13(4), pages 551-573, May.
    26. Jeffrey Unerman & Brendan O'Dwyer, 2010. "Ngo Accountability And Sustainability Issues In The Changing Global Environment," Public Management Review, Taylor & Francis Journals, vol. 12(4), pages 475-486, July.
    27. Markus C. Becker, 2005. "A framework for applying organizational routines in empirical research: linking antecedents, characteristics and performance outcomes of recurrent interaction patterns," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(5), pages 817-846, October.
    28. Dant, Rajiv P. & Nasr, Nada I., 1998. "Control techniques and upward flow of information in franchising in distant markets: conceptualization and preliminary evidence," Journal of Business Venturing, Elsevier, vol. 13(1), pages 3-28, January.
    29. Kidwell, Roland E. & Nygaard, Arne & Silkoset, Ragnhild, 2007. "Antecedents and effects of free riding in the franchisor-franchisee relationship," Journal of Business Venturing, Elsevier, vol. 22(4), pages 522-544, July.
    30. Yingyan Wang, 2011. "Mission-Driven Organizations in Japan: Management Philosophy and Individual Outcomes," Journal of Business Ethics, Springer, vol. 101(1), pages 111-126, June.
    31. Gary Castrogiovanni & Robert Justis, 2007. "Franchise failure: a reassessment of the Bates (1995) results," Service Business, Springer;Pan-Pacific Business Association, vol. 1(3), pages 247-256, September.
    32. R. Chumpitaz & N. Paparoidamis, 2007. "Service quality, relationship satisfaction, trust, commitment, and business-to-business loyalty," Post-Print hal-00199063, HAL.
    33. Brian T. Pentland, 1995. "Grammatical Models of Organizational Processes," Organization Science, INFORMS, vol. 6(5), pages 541-556, October.
    34. Treviño, Linda Klebe & Butterfield, Kenneth D. & McCabe, Donald L., 1998. "The Ethical Context in Organizations: Influences on Employee Attitudes and Behaviors," Business Ethics Quarterly, Cambridge University Press, vol. 8(3), pages 447-476, July.
    35. Henry Kaiser, 1974. "An index of factorial simplicity," Psychometrika, Springer;The Psychometric Society, vol. 39(1), pages 31-36, March.
    36. Giovanni Dosi & Luigi Marengo, 2007. "Perspective---On the Evolutionary and Behavioral Theories of Organizations: A Tentative Roadmap," Organization Science, INFORMS, vol. 18(3), pages 491-502, June.
    37. Hendrikse, G.W.J. & Jiang, T., 2005. "Plural Form in Franchising: An Incomplete Contracting Approach," ERIM Report Series Research in Management ERS-2005-090-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Begoña López-Fernández & Susana López-Bayón, 2018. "Antecedents of early terminations in franchising: franchisor versus franchisee cancelations," Small Business Economics, Springer, vol. 50(4), pages 677-695, April.
    2. Davies, Mark A.P. & Lassar, Walfried & Manolis, Chris & Prince, Melvin & Winsor, Robert D., 2011. "A model of trust and compliance in franchise relationships," Journal of Business Venturing, Elsevier, vol. 26(3), pages 321-340, May.
    3. Gillis, William E. & Combs, James G. & Yin, Xiaoli, 2020. "Franchise management capabilities and franchisor performance under alternative franchise ownership strategies," Journal of Business Venturing, Elsevier, vol. 35(1).
    4. Shockley, Jeff & Turner, Tobin, 2016. "A relational performance model for developing innovation and long-term orientation in retail franchise organizations," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 175-188.
    5. Hadjielias, Elias & Dada, Olufunmilola (Lola) & Eliades, Kostas, 2021. "Entrepreneurial process in international multiunit franchise outlets: A social capital perspective," Journal of Business Research, Elsevier, vol. 134(C), pages 13-28.
    6. Manuela Pardo-del-Val & Clara Martínez-Fuentes & José Ignacio López-Sánchez & Beatriz Minguela-Rata, 2014. "Franchising: the dilemma between standardisation and flexibility," The Service Industries Journal, Taylor & Francis Journals, vol. 34(9-10), pages 828-842, July.
    7. S. Verbieren & M. Cools & A. Van den Abbeele, 2008. "Franchising. A Literature Review on Management and Control Issues," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(4), pages 398-443.
    8. George Hendrikse & Patrick Hippmann & Josef Windsperger, 2015. "Trust, transaction costs and contractual incompleteness in franchising," Small Business Economics, Springer, vol. 44(4), pages 867-888, April.
    9. Meiseberg, Brinja & Perrigot, Rozenn, 2020. "Pricing-based practices, conflicts and performance in franchising," European Management Journal, Elsevier, vol. 38(6), pages 939-955.
    10. Rosado-Serrano, Alexander & Paul, Justin & Dikova, Desislava, 2018. "International franchising: A literature review and research agenda," Journal of Business Research, Elsevier, vol. 85(C), pages 238-257.
    11. Melih Madanoglu, 2018. "Theories of economic and social exchange in entrepreneurial partnerships: an agenda for future research," International Entrepreneurship and Management Journal, Springer, vol. 14(3), pages 649-656, September.
    12. Watson, Anna & Dada, Olufunmilola (Lola) & Grünhagen, Marko & Wollan, Melody L., 2016. "When do franchisors select entrepreneurial franchisees? An organizational identity perspective," Journal of Business Research, Elsevier, vol. 69(12), pages 5934-5945.
    13. Richard S. Brown, 2017. "Franchisor market power and control rights in franchise systems: the case of Major League Baseball versus the Los Angeles Dodgers," Service Business, Springer;Pan-Pacific Business Association, vol. 11(1), pages 1-21, March.
    14. Semrau, Thorsten & Biemann, Torsten, 2022. "When sergeants can outrank generals: Person-organization fit and the performance of franchisees as agents of their franchisor," Journal of Business Venturing, Elsevier, vol. 37(2).
    15. Griessmair, Michele & Hussain, Dildar & Windsperger, Josef, 2014. "Trust and the tendency towards multi-unit franchising: A relational governance view," Journal of Business Research, Elsevier, vol. 67(11), pages 2337-2345.
    16. Sawant, Rajeev J. & Hada, Mahima & Blanchard, Simon J., 2021. "Contractual Discrimination in Franchise Relationships," Journal of Retailing, Elsevier, vol. 97(3), pages 405-423.
    17. Boulay, Jacques & Caemmerer, Barbara & Evanschitzky, Heiner & Duniach, Krista, 2020. "Multi-unit franchising from franchisor and franchisee perspectives: Antecedents, performance outcomes, and the optimal mini-chain size," Journal of Business Research, Elsevier, vol. 113(C), pages 49-58.
    18. Kidwell, Roland E. & Nygaard, Arne & Silkoset, Ragnhild, 2007. "Antecedents and effects of free riding in the franchisor-franchisee relationship," Journal of Business Venturing, Elsevier, vol. 22(4), pages 522-544, July.
    19. Pushpinder Gill & Stephen K. Kim, 2021. "From franchisee experience to customer experience: their effects on franchisee performance," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1175-1200, November.
    20. Macedo, Isabel Maria & Pinho, José Carlos & Silva, Anabela Martins, 2016. "Revisiting the link between mission statements and organizational performance in the non-profit sector: The mediating effect of organizational commitment," European Management Journal, Elsevier, vol. 34(1), pages 36-46.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:globus:v:22:y:2021:i:2:p:311-347. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.imi.edu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.