Power asymmetries, flexibility and the propensity to coopete: an empirical investigation of SMEs' relationships with franchisors

Abstract

The impact of interorganisational features on a relationship's development process is studied through the case of Small and Medium Enterprises' (SMEs) relationships with franchisors in the banking sector. The study provides a real-life, in-depth study of SME-franchisor relationships, including their development, disruption and propensity to coopete. A power asymmetry is revealed to be a major reason for the formation of the relationship, whereas flexibility seems to be positively correlated with development. There is evidence that a development model should encompass a mutually agreed evolution but also unilateral actions, including coopetition and opportunism. The author proposes a development model.

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