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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Main Authors: Johnathan Marks, Eli Golovey
Format: Article
Language:English
Published: AfricaJournals 2020-12-01
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.
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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
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AT eligolovey entrepreneurialresourcesasadriverofperformancedifferencesinaquickservicerestaurantfranchisesystem