Franchisee Selection for Social Franchising Success

Franchisee selection is a major input for franchising success. In this article, we argue that franchisee selection criteria do not differ between social and commercial franchising. They may be even more relevant for obtaining social franchising success. We discuss criteria for franchisee selection and present details of our multiple case study research to support the argument. Our study finds that evolved social franchisors do adopt similar selection criteria as commercial franchisees. In addition, constraints faced with franchisee selection among commercial franchisors are reflected also among social franchisors. We contribute to franchising literature by extending commercial franchisee selection criteria to social franchisee selection. A major managerial implication of this research is that existing franchising professionals could easily assist new social franchisors in developing their social franchisees. Future research could be study criteria weights and methodology adopted for making final selection. A new research direction could involve studying if selection criteria would differ based on (a) social cause and (b) franchisee location.     

Conceptualizing the Franchise System Quality (FSQ) Matrix

Abstract

This empirical study provides some exploratory evidence to the proposed Franchise System Quality (FSQ) Matrix. This is the first study to investigate how franchisees perceive the importance and adequacy of the franchisor-provided services within a franchise system. Using these two dimensions as anchors, the FSQ matrix is conceptualized with four distinct profiles. The analysis of survey responses of 185 Taiwanese franchisees strongly confirms the validity of the four-cell matrix indicating significant differences between them. The results also yield a highly significant comparison between system quality permutations with franchisee performance variables and behavioral perceptions. These results show that franchisees with better performances are worthy of more support and assistance from franchisors. Those franchisees that are identified with highperceived importance of the FSQ matrix have a stronger desire for autonomy.     

An Illustrative Application of Multi-Unit Franchise Expansion in a Local Retail Market

Abstract

Retail expansion in a local market offers many challenges, and given the sensitivity of survival to location mistakes, it is imperative to develop site models that incorporate realistic impediments to that expansion. Small independent businesses or local area franchisees facing limits on all forms of capital rarely can open additional units without delays. In this paper, we test the benefit of using Kaufmann, Donthu and Brooks' (2000) multi-unit site selection model that incorporates the reality of delays in the opening of new stores as well as the recognition that local retail chains can face competition from many hard to identify sources. We use data from the actual introduction of a small set of stores in a major United States metropolitan market to estimate the potential for improvement over a pure sequential expansion strategy. When compared to the sequential strategy actually used by the retailer, we estimate that performance could have been improved by 15.5% if a model that anticipated the delays in opening the stores and competition from secondary sources would have been used.     

A Typology for Hospitality Franchise Systems

Abstract

In spite of the high level of independence that exists in a franchise system, franchisees and franchisers are extensively dependent on each other. Because of this greater interdependence that exists in the system, financial success of one depends on the financial performance of the other. Therefore, any strategic choices made by a franchisee must always include the financial performance of the franchiser. A strategic typology based on the financial performance of franchisees and franchisers is presented in this paper. Potential strategic choices to the franchisees in different given financial performance scenarios are discussed. It is a conceptual paper offering a model and suggestions for future research on strategic management in franchising.     

How passive ownership restrictions affect the rate of franchisee failure

What variables influence the adoption of passive ownership restrictions in franchise systems and what are the effects of these restrictions on the rate of franchisee failure of such systems? This article shows how standard performance models that do not account for self-selection of these contractual decisions can improperly suggest a negative relationship between the adoption of passive ownership restrictions and a performance outcome of franchise systems – the rate of franchisee failure. However, models that do account for self-selection of these restrictions indicate that these contractual decisions per se do not affect such a performance outcome. The findings also show that franchise systems with misaligned passive ownership restrictions show a higher rate of franchisee failure than their better-aligned counterparts.     

A Knowledge-Based Explanation of Franchise System Resources and Performance

The knowledge-based view (KBV) holds that the knowledge that an organization possesses is its most important strategic resource. Despite how important the adequate use of knowledge is to franchise system success, the KBV has yet to guide many franchising studies. The most important principle of KBV is to recognize system-wide resources through the eyes of knowledge-based resources. Using two separate secondary data sets, we examine the relationships between the knowledgeable employment of system resources and system performance. Empirical results reveal consistent support for our hypotheses. The ensuing discussion focuses on the implications of our findings.     

U.S.-Based Fast-Food Restaurants: Factors Influencing the International Expansion of Franchise Systems

Studies of international franchising are scant but increasing and can be divided into two streams of research: those focusing on environmental predictors of internationalization and those focusing on strategic, firm-level characteristics. Examining the latter category, this study empirically explores a set of firm-level attributes as predictors of decision making on whether firms seek international expansion. Using longitudinal data from Bond's Franchise Guide 2001–2008, we draw on a sample of U.S.-based fast-food franchise systems to test our hypotheses. Specifically, our database is composed of 1,058 observations of 158 chains, and we estimate a semi-parametric logistic model for international franchising. The model contributes to the literature by being the first to examine the nonlinearity of international franchising determinants using agency theory. The results show that (a) bonding, (b) the percentage of franchised units, (c) the number of states within which the system operates, and (d) the provision of area development agreements and sub-franchising significantly contribute to the international expansion of U.S.-based fast-food franchisors.     

An Exploratory Study to Identify the Site Selection Factors for U.S. Franchise Restaurants

Abstract

The purpose of this study was to identify site selection factors under six categories that are most pertinent for the successful operation of U.S. franchise restaurants. The results highlight the most important site selection factors, which can be used as a guide by franchisors as well as franchisees. The selected six site selection categories as narrowed down in this study included general location, position of site, demographics, traffic information, competition, and cost consideration. The Delphi technique identified 56 site selection factors under these six categories, which were ultimately predicted as necessary for the success or failure of franchise restaurants.     

企业逆向物流系统社会效益绩效评价指标体系研究

逆向物流系统不仅创造经济效益,而且创造社会效益。基于社会效益视角,可设计一套对评价流程、构建原则、综合评价方法、评价指标,作为评价逆向物流系统绩效指标体系的根据。通过综合评判结果得出：逆向物流的产品回流量小、地点分散、可控性差等因素影响了逆向物流的有效运作;逆向物流系统的运作是否达到预期的目标,取得良好的效果,需要构建一个包括社会责任、社会形象、社会贡献与经济效益相匹配的、协调统一的、科学合理通用的社会效益绩效评价指标体系,并将其置于发展的战略地位。     

The Effective Delivery of Franchisor Services: A Comparison of U.S. and German Support Practices for Franchisees

ABSTRACT

Conventional wisdom suggests that more services offered by franchisors should lead to fewer complaints from franchisees, and that franchisees ought to be better off with additional support provided. We set out to differentiate those services that are truly effective and are perceived as beneficial by franchisees from those that may have little effect or may even be perceived as counterproductive. Our survey targeted franchisors in the U.S. and in Germany, comparing the most mature franchise market globally to one that is relatively young. System disruption was found to be dependent on the maturity of the market, as little differentiation is provided in the very mature U.S. market, but considerable differentiation exists in the younger German market. Also, the size of the system matters, as bigger systems typically provide more services. Finally, different types of services have varying levels of effectiveness in the less mature franchise market of Germany.     

内蒙古自治区综合经济实力分析

本文认为,内蒙古作为西部12省(市、区)之一和五大民族地区之一,其经济发展水平的提高对全国经济发展乃至国家长治久安都具有重要作用。内蒙古自治区是我国的区域资源大区,随着经济的快速发展,人均收入显著提高,投资迅速增长,现已成为西部发展的新亮点。文章建立了地区经济实力评价指标体系,采用多元统计分析中的主成分分析方法,利用综合评价函数对西部地区进行地区经济实力评价。分析结果表明,内蒙古自治区在全社会经济效益赢利方面处于西部省(市、区)中游偏上位置;城镇居民收支情况相对稳定,城镇居民生活相对比较舒适;农村居民收入水平位居西部地区前列,生活比较富足。     

Exploring the use of managerial intuition in retail site selection

Although many researchers have noted the widespread adoption of managerial intuition in choosing retail sites, few empirical studies consider the construct and those that do tend to examine it in isolation. Here, intuition is investigated in conjunction with the more quantitative variables typically used to model site selection and it is found to make a significant contribution to the choice process. Data collected from 253 individuals responsible for leasing/real estate decisions in the U.S. retail sector were analyzed. Findings confirm the widespread use of intuition in making site selection decisions, but further indicate that decision-makers may not be fully attuned to their decision making process. Counter to prior research, the use of intuition in this study does not differ based on the size of the retailer or the experience level of the decision-maker. The theoretical and managerial implications of these findings are discussed and ideas for future research are explicated.     

解决农残问题扩大茶叶出口--从对德国出口茶叶下降谈起

茶叶是我国传统大宗出口商品。但自2000年以来，我国茶叶出口开始呈现持续下降的趋势。其主要原因除了发达国家设置的技术壁垒外，我国茶叶生产自身的弱点也不容忽视；如不立即采取有效措施，我国茶叶最后有可能不得不退出德国乃至欧盟市场。     

基于多约束NSGA2算法的空管监视台站优化选址

为了实现空管监视台站的科学规划、合理布局,探讨了一种高效通用的优化选址算法。通过深入分析监视台站优化选址的问题,建立了多变量组合寻优的组网模型,提出了选址的简要约束条件和3个覆盖性能评估的目标函数,并在此基础上设计了空管监视台站优化选址的多约束NSGA2算法,该算法考虑了监视台站选址的各类影响因素加入多约束条件判定模块和种群修正模块。真实场景的仿真实例表明,优化输出的最优部署方案具有良好的覆盖性能,航路二重覆盖能达到98%以上,终端区域三重覆盖能达到95%以上。     

政府治理与国有企业绩效评价体系完善

我国国有企业的改革与发展是政府、企业及学术界近年研究探讨的热点问题,国有企业绩效评价指标体系在设计思路和指标选取上亟待改进。研究政府治理对国有企业绩效评价的影响,结合EVA及BSC,降低财务指标权重、增加非财务指标权重,提出量化社会绩效指标、增加环境绩效指标以完善国有企业绩效评价体系,重新构建政府治理下的国有企业绩效评价指标体系。     

物流设施选址问题的优化——基于聚类分析

随着物流行业的迅猛发展,物流设施的选址与规划成为了物流领域极其重要的一个课题。物流设施选址的恰当与否,对供应链运行、物流成本控制、生产力布局等有着不可小觑的影响。物流设施的选址与规划必须进行合理的预测和分析,使其符合物流系统的合理化建设要求,才能稳定、快速、持续的提高物流水平,从而促进物流行业的发展。聚类分析在物流设施选址与规划中的应用,使得多物流设施的选址问题得到了很好的简化,很大程度上改善了物流领域的选址规划,为物流的稳步发展提供了有力的保障。     

对硅谷创新型网络资本系统的剖析与思考

利用网络资本理论剖析硅谷创新型网络资本系统,分析硅谷的发展进程,并就在经济全球化进程中如何建设我国的高新技术开发区,提升其核心竞争力进行了探索     

A Proposed Model for Consumer-Based Brand Equity Analysis on Social Media Using Data Mining and Social Network Analysis

Online social networks have expanded their “virtual borders,” making the Internet more like an environment of social interaction than a business tool. However, even before the emergence and expansion of social media, marketing professionals were interested in identifying consumers' perceptions about brands. Thus, operational models have been proposed to facilitate such a task. Those models, however, can be expensive and inconvenient, since the models use questionnaires for data collection. To help overcome this problem, this article proposes a model for brand equity analysis from the consumer perspective expressed in social networks using opinion mining techniques and social network analysis. The application of the proposed model on data collected from Twitter made it possible to analyze five brand equity dimensions: brand awareness, brand loyalty, perceived sentiment, perceived quality, and brand associations. The results reached by the application of the model show that brand equity can be analyzed from data retrieved from virtual social networks, disclosing how consumers perceive brands in such an environment, without using questionnaires, enabling different brands in different contexts. Those data can be analyzed under both objective and replicable criteria for each of the brand equity elements that make up the model.     

企业品牌网络:产业集群视域下的研究

通过论证社会网络分析方法对品牌研究的适用性,提出研究集群企业品牌网络。借鉴社会网络分析方法,对集群企业品牌网络进行了界定,分析集群企业品牌网络的结构研及影响因素、集群企业品牌网络的互动依赖、复合嵌入和品牌发展非平衡特征。     

Consumer engagement with brands on social network sites: A cross-cultural comparison of China and the USA

To advance theoretical understanding of consumer engagement on social media, this cross-cultural study evaluates how culture influences consumers’ engagement levels and activities on brand pages of social network sites. It further evaluates the underlying motivations and engagement mechanisms in two culturally distinct countries, China and the USA. Specifically, social media dependency, parasocial interaction, and community identification are examined as the key antecedents of consumer-brand engagement. The results confirm the effects of the proposed antecedents and reveal both cultural differences and similarities between Chinese and American consumers’ engagement with brand pages on social network sites.