IDEAS home Printed from https://ideas.repec.org/a/sae/entthe/v37y2013i2p201-227.html
   My bibliography  Save this article

Exploring Entrepreneurial Cognition in Franchisees: A Knowledge–Structure Approach

Author

Listed:
  • Kristie W. Seawright
  • Isaac H. Smith
  • Ronald K. Mitchell
  • Richard McClendon

Abstract

Franchisees participate in new business creation uniquely, because, in many respects, the development of their ventures is under the direction of franchisors. In this study, using entrepreneurial scripts, we compare the extent to which franchisee venturing is similar to and/or distinct from individual–based entrepreneurship in nonfranchise new ventures. We therefore examined the entrepreneurial scripts of individuals in a purposeful sample of 54 franchisees compared to two counterpart groups: 54 independent entrepreneurs and 94 managers (neither franchisee nor entrepreneur). Using MANCOVA and follow–up tests we find that franchisees are less like entrepreneurs and more similar to nonentrepreneur managers.

Suggested Citation

  • Kristie W. Seawright & Isaac H. Smith & Ronald K. Mitchell & Richard McClendon, 2013. "Exploring Entrepreneurial Cognition in Franchisees: A Knowledge–Structure Approach," Entrepreneurship Theory and Practice, , vol. 37(2), pages 201-227, March.
  • Handle: RePEc:sae:entthe:v:37:y:2013:i:2:p:201-227
    DOI: 10.1111/j.1540-6520.2011.00467.x
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1111/j.1540-6520.2011.00467.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1540-6520.2011.00467.x?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. Andrew C. Corbett & Keith M. Hmieleski, 2007. "The Conflicting Cognitions of Corporate Entrepreneurs," Entrepreneurship Theory and Practice, , vol. 31(1), pages 103-121, January.
    2. Bates, Timothy, 1998. "Survival patterns among newcomers to franchising," Journal of Business Venturing, Elsevier, vol. 13(2), pages 113-130, March.
    3. Sarasvathy, D. K. & Simon, Herbert A. & Lave, Lester, 1998. "Perceiving and managing business risks: differences between entrepreneurs and bankers," Journal of Economic Behavior & Organization, Elsevier, vol. 33(2), pages 207-225, January.
    4. Norris F. Krueger Jr. & Deborah V. Brazeal, 1994. "Entrepreneurial Potential and Potential Entrepreneurs," Entrepreneurship Theory and Practice, , vol. 18(3), pages 91-104, April.
    5. Stanworth, John & Curran, James, 1999. "Colas, burgers, shakes, and shirkers: Towards a sociological model of franchising in the market economy," Journal of Business Venturing, Elsevier, vol. 14(4), pages 323-344, July.
    6. Chrisman, James J. & McMullan, Ed & Hall, Jeremy, 2005. "The influence of guided preparation on the long-term performance of new ventures," Journal of Business Venturing, Elsevier, vol. 20(6), pages 769-791, November.
    7. Peter Moran, 2005. "Structural vs. relational embeddedness: social capital and managerial performance," Strategic Management Journal, Wiley Blackwell, vol. 26(12), pages 1129-1151, December.
    8. Ronald K. Mitchell & J. Brock Smith & Eric A. Morse & Kristie W. Seawright & Ana Maria Peredo & Brian McKenzie, 2002. "Are Entrepreneurial Cognitions Universal? Assessing Entrepreneurial Cognitions across Cultures," Entrepreneurship Theory and Practice, , vol. 26(4), pages 9-32, July.
    9. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    10. Laux, Christian, 2001. "Project-Specific External Financing and Headquarters Monitoring Incentives," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 17(2), pages 397-412, October.
    11. Dew, Nicholas & Read, Stuart & Sarasvathy, Saras D. & Wiltbank, Robert, 2009. "Effectual versus predictive logics in entrepreneurial decision-making: Differences between experts and novices," Journal of Business Venturing, Elsevier, vol. 24(4), pages 287-309, July.
    12. Ronald K. Mitchell & Lowell W. Busenitz & Barbara Bird & Connie Marie Gaglio & Jeffery S. McMullen & Eric A. Morse & J. Brock Smith, 2007. "The Central Question in Entrepreneurial Cognition Research 2007," Entrepreneurship Theory and Practice, , vol. 31(1), pages 1-27, January.
    13. Williams, Darrell L., 1999. "Why do entrepreneurs become franchisees? an empirical analysis of organizational choice," Journal of Business Venturing, Elsevier, vol. 14(1), pages 103-124, January.
    14. Busenitz, Lowell W. & Barney, Jay B., 1997. "Differences between entrepreneurs and managers in large organizations: Biases and heuristics in strategic decision-making," Journal of Business Venturing, Elsevier, vol. 12(1), pages 9-30, January.
    15. Stuart, Robert W. & Abetti, Pier A., 1990. "Impact of entrepreneurial and management experience on early performance," Journal of Business Venturing, Elsevier, vol. 5(3), pages 151-162, May.
    16. 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.
    17. Ronald K. Mitchell & Benjamin T. Mitchell & J. Robert Mitchell, 2009. "Entrepreneurial Scripts and Entrepreneurial Expertise: The Information Processing Perspective," International Studies in Entrepreneurship, in: Alan L. Carsrud & Malin Brännback (ed.), Understanding the Entrepreneurial Mind, chapter 0, pages 97-137, Springer.
    18. Jon Sundbo & Robert Johnston & Jan Mattsson & Bruce Millett, 2001. "Innovation in service internationalization: the crucial role of the frantrepreneur," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 13(3), pages 247-267, July.
    19. James P. Walsh, 1995. "Managerial and Organizational Cognition: Notes from a Trip Down Memory Lane," Organization Science, INFORMS, vol. 6(3), pages 280-321, June.
    20. Falbe, Cecilia M. & Dandridge, Thomas C. & Kumar, Ajith, 1999. "The effect of organizational context on entrepreneurial strategies in franchising," Journal of Business Venturing, Elsevier, vol. 14(1), pages 125-140, January.
    21. Olav Sorenson & Jesper B. Sørensen, 2001. "Finding the right mix: franchising, organizational learning, and chain performance," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 713-724, June.
    22. Donna Marie De Carolis & Barrie E. Litzky & Kimberly A. Eddleston, 2009. "Why Networks Enhance the Progress of New Venture Creation: The Influence of Social Capital and Cognition," Entrepreneurship Theory and Practice, , vol. 33(2), pages 527-545, March.
    23. Simon, Mark & Houghton, Susan M. & Aquino, Karl, 2000. "Cognitive biases, risk perception, and venture formation: How individuals decide to start companies," Journal of Business Venturing, Elsevier, vol. 15(2), pages 113-134, March.
    24. Kaufmann, Patrick J., 1999. "Franchising and the choice of self-employment," Journal of Business Venturing, Elsevier, vol. 14(4), pages 345-362, July.
    25. Jambulingam, Thani & Nevin, John R., 1999. "Influence of franchisee selection criteria on outcomes desired by the franchisor," Journal of Business Venturing, Elsevier, vol. 14(4), pages 363-395, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Khurana, Indu & Dutta, Dev K, 2021. "From latent to emergent entrepreneurship in innovation ecosystems: The role of entrepreneurial learning," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    2. 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.
    3. Darden, Bryan B. & Kellermanns, Franz W. & Best, Emma L., 2022. "Entrepreneurial fear of failure: Transgender versus cis-gender entrepreneurs," Journal of Business Venturing Insights, Elsevier, vol. 18(C).

    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. Dominic S.K. Lim & Eric A. Morse & Ronald K. Mitchell & Kristie K. Seawright, 2010. "Institutional Environment and Entrepreneurial Cognitions: A Comparative Business Systems Perspective," Entrepreneurship Theory and Practice, , vol. 34(3), pages 491-516, May.
    2. 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.
    3. James C. Hayton & Magdalena Cholakova, 2012. "The Role of Affect in the Creation and Intentional Pursuit of Entrepreneurial Ideas," Entrepreneurship Theory and Practice, , vol. 36(1), pages 41-67, January.
    4. Oliver Thomas, 2018. "Two decades of cognitive bias research in entrepreneurship: What do we know and where do we go from here?," Management Review Quarterly, Springer, vol. 68(2), pages 107-143, April.
    5. Grichnik, Dietmar & Smeja, Alexander & Welpe, Isabell, 2010. "The importance of being emotional: How do emotions affect entrepreneurial opportunity evaluation and exploitation?," Journal of Economic Behavior & Organization, Elsevier, vol. 76(1), pages 15-29, October.
    6. Ronald K. Mitchell & Lowell W. Busenitz & Barbara Bird & Connie Marie Gaglio & Jeffery S. McMullen & Eric A. Morse & J. Brock Smith, 2007. "The Central Question in Entrepreneurial Cognition Research 2007," Entrepreneurship Theory and Practice, , vol. 31(1), pages 1-27, January.
    7. Andranik Tumasjan & Isabell Welpe & Matthias Spörrle, 2013. "Easy Now, Desirable Later: The Moderating Role of Temporal Distance in Opportunity Evaluation and Exploitation," Entrepreneurship Theory and Practice, , vol. 37(4), pages 859-888, July.
    8. Stroe, Silvia & Parida, Vinit & Wincent, Joakim, 2018. "Effectuation or causation: An fsQCA analysis of entrepreneurial passion, risk perception, and self-efficacy," Journal of Business Research, Elsevier, vol. 89(C), pages 265-272.
    9. Francine Lafontaine & Marek Zapletal & Xu Zhang, 2019. "Brighter prospects? Assessing the franchise advantage using census data," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(2), pages 175-197, April.
    10. J. Brock Smith & J. Robert Mitchell & Ronald K. Mitchell, 2009. "Entrepreneurial Scripts and the New Transaction Commitment Mindset: Extending the Expert Information Processing Theory Approach to Entrepreneurial Cognition Research," Entrepreneurship Theory and Practice, , vol. 33(4), pages 815-844, July.
    11. Neill Stern & Metcalf Lynn & York Jonathan L., 2015. "Seeing What Others Miss: A Study of Women Entrepreneurs in High-Growth Startups," Entrepreneurship Research Journal, De Gruyter, vol. 5(4), pages 293-322, October.
    12. Dietmar Grichnik & Alexander Smeja & Isabell Welpe, 2010. "The Importance of Being Emotional: How do Emotions Affect Entrepreneurial Opportunity Evaluation and Exploitation?," Post-Print hal-00856603, HAL.
    13. Tumasjan, Andranik & Braun, Reiner, 2012. "In the eye of the beholder: How regulatory focus and self-efficacy interact in influencing opportunity recognition," Journal of Business Venturing, Elsevier, vol. 27(6), pages 622-636.
    14. Andrew C. Corbett & Keith M. Hmieleski, 2007. "The Conflicting Cognitions of Corporate Entrepreneurs," Entrepreneurship Theory and Practice, , vol. 31(1), pages 103-121, January.
    15. Holmberg, Stevan R. & Morgan, Kathryn Boe, 2003. "Franchise turnover and failure: New research and perspectives," Journal of Business Venturing, Elsevier, vol. 18(3), pages 403-418, May.
    16. María José Rodríguez-Gutiérrez & Isidoro Romero & Zhikun Yu, 2020. "Guanxi and risk-taking propensity in Chinese immigrants’ businesses," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 305-325, March.
    17. Chen, H. Shawna & Mitchell, Ronald K. & Brigham, Keith H. & Howell, Roy & Steinbauer, Robert, 2018. "Perceived psychological distance, construal processes, and abstractness of entrepreneurial action," Journal of Business Venturing, Elsevier, vol. 33(3), pages 296-314.
    18. Stephen X. Zhang & Javier Cueto, 2017. "The Study of Bias in Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 41(3), pages 419-454, May.
    19. M. Kannadhasan & Pankaj Singh & Parikshit Charan & Pavan Kumar Balivada, 2018. "Personality characteristics and the process of start-up: the moderating role of institutional environment," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 45(4), pages 287-300, December.
    20. Aragon-Mendoza, Juan & del Val, Manuela Pardo & Roig-Dobón, Salvador, 2016. "The influence of institutions development in venture creation decision: A cognitive view," Journal of Business Research, Elsevier, vol. 69(11), pages 4941-4946.

    More about this item

    Statistics

    Access and download statistics

    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:entthe:v:37:y:2013:i:2:p:201-227. 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: .

    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.