Antecedents of franchisee responses to franchisor-initiated strategic change

Abstract

This article uses an in-depth case study of two franchisor imposed change processes in one franchise system to generate propositions on the antecedents of franchisee responses to franchisor-initiated strategic change. The results point to the importance of the level of standardisation in the franchise system on franchisee responses to changes introduced by the franchisor. The franchise system’s standardisation level, as perceived and expected by franchisees, determines the number, nature and level of importance of antecedents of franchisee responses to change. Overall, franchisee expected profitability and trust are the most important antecedents. Additionally, non-economic motivations for running a franchise influence decisions to take-up alternative opportunities and diminish the importance of switching costs. Finally, actions of parties outside the existing franchise relationship may influence franchisee decisions to switch systems.

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