The franchise dilemma:entrepreneurial characteristics, relational contracting, and opportunism in hybrid governance

Evanschitzky, Heiner, Caemmerer, Barbara and Backhaus, Christof (2016). The franchise dilemma:entrepreneurial characteristics, relational contracting, and opportunism in hybrid governance. Journal of Small Business Management, 54 (1), pp. 279-298.

Abstract

Using franchise data, we identify that entrepreneurial characteristics of franchisees partially impact on their opportunistic tendencies. Further, relational contracting increases franchisee opportunism by strengthening the opportunism-enhancing impact of entrepreneurial characteristics. These findings point to a key dilemma franchisors need to be aware of: Entrepreneurially minded franchisees who might be better at exploiting market opportunities for their units may also behave more opportunistically, if given the chance through a more relational contracting regime. At the same time, if they perceive the contractual framework as being too rigid, they may be less able to leverage their capabilities, become dissatisfied, and exit the system.

Publication DOI: https://doi.org/10.1111/jsbm.12145
Divisions: Aston Business School > Marketing & strategy
Aston Business School > Marketing & strategy research group
Aston Business School
Additional Information: This is the peer reviewed version of the following article: Evanschitzky, H., Caemmerer, B., & Backhaus, C. (2015). The franchise dilemma: entrepreneurial characteristics, relational contracting, and opportunism in hybrid governance. Journal of small business management, 54(1), 279-298, which has been published in final form at http://dx.doi.org/10.1111/jsbm.12145. This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
Uncontrolled Keywords: Management of Technology and Innovation,Strategy and Management,Business, Management and Accounting(all)
Full Text Link: http://onlinelibrary.wiley.com/doi/10.1111/jsbm.12145/abstract
Related URLs: http://www.scopus.com/inward/record.url?scp=84949313484&partnerID=8YFLogxK (Scopus URL)
Published Date: 2016-01
Authors: Evanschitzky, Heiner ( 0000-0003-1013-7679)
Caemmerer, Barbara
Backhaus, Christof

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