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


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.

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Divisions: College of Business and Social Sciences > Aston Business School > Marketing & Strategy
College of Business and Social Sciences > 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 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)
Publication ISSN: 1540-627X
Last Modified: 23 Feb 2024 08:08
Date Deposited: 04 Mar 2015 12:45
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Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
http://onlineli ... .12145/abstract (Publisher URL)
PURE Output Type: Article
Published Date: 2016-01
Published Online Date: 2015-01-15
Accepted Date: 2015-01-01
Authors: Evanschitzky, Heiner (ORCID Profile 0000-0003-1013-7679)
Caemmerer, Barbara
Backhaus, Christof



Version: Accepted Version

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