TY - JOUR
T1 - The franchise dilemma
T2 - entrepreneurial characteristics, relational contracting, and opportunism in hybrid governance
AU - Evanschitzky, Heiner
AU - Caemmerer, Barbara
AU - Backhaus, Christof
N1 - 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.
PY - 2016/1
Y1 - 2016/1
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=84949313484&partnerID=8YFLogxK
UR - http://onlinelibrary.wiley.com/doi/10.1111/jsbm.12145/abstract
U2 - 10.1111/jsbm.12145
DO - 10.1111/jsbm.12145
M3 - Article
AN - SCOPUS:84949313484
SN - 0047-2778
VL - 54
SP - 279
EP - 298
JO - Journal of Small Business Management
JF - Journal of Small Business Management
IS - 1
ER -