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Should Fast-Food Franchisees Pursue Entrepreneurial Orientation?

Author

Listed:
  • Asgharian Ehsan

    (Graduated from Linköping University, Linköping, Sweden)

  • Tasavori Misagh

    (Graduate School of Management and Economics, Sharif University of Technology, Tehran, Iran)

  • Andersén Jim

    (School of Business, University of Skövde, Skövde, Sweden)

Abstract

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.

Suggested Citation

  • Asgharian Ehsan & Tasavori Misagh & Andersén Jim, 2023. "Should Fast-Food Franchisees Pursue Entrepreneurial Orientation?," Entrepreneurship Research Journal, De Gruyter, vol. 13(2), pages 185-220, April.
    • Handle: RePEc:bpj:erjour:v:13:y:2023:i:2:p:185-220:n:10
    DOI: 10.1515/erj-2019-0377
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