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The Effect of Intangible Resources on Firm Performance in the Spanish Franchising System: the Moderating Influence of Internationalization

In: European Retail Research

Author

Listed:
  • Victoria Bordonaba-Juste

    (University of Zaragoza)

  • Laura Lucia-Palacios

    (University of Zaragoza)

  • Yolanda Polo-Redondo

    (University of Zaragoza)

Abstract

Drawing on the resource-based view of the firm, this article empirically analyzes the effects of intangible resources on firm performance, using 84 franchise systems operating in the catering sector. Based on indicators used in earlier studies in franchising, we use several proxies for the franchisor’s intangible brand name and knowledge assets. We show that franchisors’ intangible resources are related to obtaining a higher performance as well as gaining competitive advantages. In addition, we combine this theory and international franchise research to examine the moderating influence of internationalization on franchise performance. Our results suggest that the largest and most internationalized franchise networks will provide services with brand name recognition that improves their performance. However, the age of the franchise chain can be unfavourable in firms, due to a high level of internationalization as a result of standardized policies, systems of learning and limits in adapting mature firms to new foreign market procedures.

Suggested Citation

  • Victoria Bordonaba-Juste & Laura Lucia-Palacios & Yolanda Polo-Redondo, 2009. "The Effect of Intangible Resources on Firm Performance in the Spanish Franchising System: the Moderating Influence of Internationalization," Springer Books, in: Peter Schnedlitz & Dirk Morschett & Thomas Rudolph & Hanna Schramm-Klein & Bernhard Swoboda (ed.), European Retail Research, pages 1-21, Springer.
  • Handle: RePEc:spr:sprchp:978-3-8349-6344-4_1
    DOI: 10.1007/978-3-8349-6344-4_1
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