Modelling effect of valuable resources on franchise outlet performance: Dynamic sensing capability as mediator
Background: Competitive advantage and superior firm performance depend on resources and dynamic capabilities. Aim: This study aims to provide insight into the franchising industry where research on the value-dynamic sensing capability-performance relationship as part of the resource-based theory (R...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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AOSIS
2019-07-01
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| Series: | South African Journal of Economic and Management Sciences |
| Subjects: | |
| Online Access: | https://sajems.org/index.php/sajems/article/view/2706 |
| Summary: | Background: Competitive advantage and superior firm performance depend on resources and dynamic capabilities.
Aim: This study aims to provide insight into the franchising industry where research on the value-dynamic sensing capability-performance relationship as part of the resource-based theory (RBT) seems to be novel. Drawing on the RBT, this study examines how valuable resources and dynamic sensing capability impact franchise outlet performance.
Setting: Based on a cross-sectional design, a sample of 224 South African franchise outlet managers and owner-operators in the fast food and retailing categories was surveyed.
Methods: Hypotheses were tested using a single-level structural equation model for value, dynamic sensing capability and performance.
Results: The results contribute to research on RBT in the context of franchises by providing support for the assumption that firm resources and capabilities improve performance.
Conclusion: The findings are expected to provide a strong base from which franchise managers and owner-operators can strategise for competitive advantage in an emerging economy like South Africa. |
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| ISSN: | 1015-8812 2222-3436 |