Entrepreneurial Resources as a Driver of Performance Differences in a Quick Service Restaurant Franchise System
This study explored performance differences between corporate-owned and operated and franchised outlets in the quick-service restaurant (QSR) industry. While studies have shown that there is a performance difference favouring franchisees, the reasons for this difference have not been explained. Usin...
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Format: | Article |
Language: | English |
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AfricaJournals
2020-12-01
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Series: | African Journal of Hospitality, Tourism and Leisure |
Subjects: | |
Online Access: | https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_10_9_5__1111-1130.pdf |
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author | Johnathan Marks Eli Golovey |
author_facet | Johnathan Marks Eli Golovey |
author_sort | Johnathan Marks |
collection | DOAJ |
description | This study explored performance differences between corporate-owned and operated and franchised outlets in the quick-service restaurant (QSR) industry. While studies have shown that there is a performance difference favouring franchisees, the reasons for this difference have not been explained. Using the Resource-Based View of the Firm, the operational differences between two ownership modes within the same franchise ecosystem were assessed. The study used qualitative data collected from twenty interviews with a broad range of stakeholders across a single South Africa quick-service restaurant brand that included company-owned and operated stores and franchised operations. The study identified a range of performance factors: franchisee motivation, franchisee empowerment and flexibility, manager focus, opportunity realisation, corporate rigidity and tactical restaurant management that contribute to enhancing the entrepreneurial resources and orientation that, along with strategic flexibility, provide franchisees with a performance advantage. This study has implications for those in the QSR sector and the hospitality industry in general, detailing what drives or hinders firm performance. This research has
value for theoreticians in its novel application of the Resource-Based View of the Firm theory to a franchise-based entrepreneurial environment. |
first_indexed | 2024-12-20T01:14:53Z |
format | Article |
id | doaj.art-656ff144563f45ad8b308177a4d0b082 |
institution | Directory Open Access Journal |
issn | 2223-814X |
language | English |
last_indexed | 2024-12-20T01:14:53Z |
publishDate | 2020-12-01 |
publisher | AfricaJournals |
record_format | Article |
series | African Journal of Hospitality, Tourism and Leisure |
spelling | doaj.art-656ff144563f45ad8b308177a4d0b0822022-12-21T19:58:37ZengAfricaJournalsAfrican Journal of Hospitality, Tourism and Leisure2223-814X2020-12-019511111130https://doi.org/10.46222/ajhtl.19770720-72Entrepreneurial Resources as a Driver of Performance Differences in a Quick Service Restaurant Franchise SystemJohnathan Marks0Eli Golovey1Gordon Institute of Business Science, University of PretoriaGordon Institute of Business Science, University of PretoriaThis study explored performance differences between corporate-owned and operated and franchised outlets in the quick-service restaurant (QSR) industry. While studies have shown that there is a performance difference favouring franchisees, the reasons for this difference have not been explained. Using the Resource-Based View of the Firm, the operational differences between two ownership modes within the same franchise ecosystem were assessed. The study used qualitative data collected from twenty interviews with a broad range of stakeholders across a single South Africa quick-service restaurant brand that included company-owned and operated stores and franchised operations. The study identified a range of performance factors: franchisee motivation, franchisee empowerment and flexibility, manager focus, opportunity realisation, corporate rigidity and tactical restaurant management that contribute to enhancing the entrepreneurial resources and orientation that, along with strategic flexibility, provide franchisees with a performance advantage. This study has implications for those in the QSR sector and the hospitality industry in general, detailing what drives or hinders firm performance. This research has value for theoreticians in its novel application of the Resource-Based View of the Firm theory to a franchise-based entrepreneurial environment.https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_10_9_5__1111-1130.pdfresource-based view of the firmfranchisesentrepreneurial orientationentrepreneurial resourcesquick-service restaurants |
spellingShingle | Johnathan Marks Eli Golovey Entrepreneurial Resources as a Driver of Performance Differences in a Quick Service Restaurant Franchise System African Journal of Hospitality, Tourism and Leisure resource-based view of the firm franchises entrepreneurial orientation entrepreneurial resources quick-service restaurants |
title | Entrepreneurial Resources as a Driver of Performance Differences in a Quick Service Restaurant Franchise System |
title_full | Entrepreneurial Resources as a Driver of Performance Differences in a Quick Service Restaurant Franchise System |
title_fullStr | Entrepreneurial Resources as a Driver of Performance Differences in a Quick Service Restaurant Franchise System |
title_full_unstemmed | Entrepreneurial Resources as a Driver of Performance Differences in a Quick Service Restaurant Franchise System |
title_short | Entrepreneurial Resources as a Driver of Performance Differences in a Quick Service Restaurant Franchise System |
title_sort | entrepreneurial resources as a driver of performance differences in a quick service restaurant franchise system |
topic | resource-based view of the firm franchises entrepreneurial orientation entrepreneurial resources quick-service restaurants |
url | https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_10_9_5__1111-1130.pdf |
work_keys_str_mv | AT johnathanmarks entrepreneurialresourcesasadriverofperformancedifferencesinaquickservicerestaurantfranchisesystem AT eligolovey entrepreneurialresourcesasadriverofperformancedifferencesinaquickservicerestaurantfranchisesystem |