Research Output
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.

  • Type:

    Article

  • Date:

    15 January 2015

  • Publication Status:

    Published

  • Publisher

    Informa UK Limited

  • DOI:

    10.1111/jsbm.12145

  • ISSN:

    0047-2778

  • Funders:

    Newcastle University

Citation

Evanschitzky, H., Caemmerer, B., & Backhaus, C. (2016). The Franchise Dilemma: Entrepreneurial Characteristics, Relational Contracting, and Opportunism in Hybrid Governance. Journal of Small Business Management, 54(1), 279-298. https://doi.org/10.1111/jsbm.12145

Authors

Keywords

Management of Technology and Innovation; Strategy and Management; General Business, Management and Accounting

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