Abstract
The literature of knowledge transfer studies complexity as a knowledge characteristic which influences organisations’ performance since it hinders this process. However, complex knowledge is richer and more complete and its influence on performance may be positive. So, the purpose of this study is to analyse the influence of knowledge complexity on the performance of franchise systems in the service industries. With this aim, a linear regression analysis is conducted on a sample of franchisee of different franchise chains of the several service industries operating in Spain. The findings seem to indicate that complexity has a positive impact on the performance of franchise systems.
Similar content being viewed by others
Notes
According to the European Code of Franchising Practice which is applicable in Spain, the business concept is the conjunction of three elements: 1) the right to use the brand, the brand name, the signs and symbols and the logo, 2) the products, services and technologies developed by the franchisor, and 3) use of the franchisor’s know-how.
References
Alonso Prieto M (2003) La Franquicia de la ‘A’ a la ‘Z’. Manual para el Franquiciador y el Franquiciado. LID Editorial Empresarial, Madrid
Anderson EE (1984) The growth and performance of franchise systems: company versus franchisee ownership. J Econ Bus 36:421–431
Bates A (2002) What drives profit in franchising. Franch World 34(3):46–47
Bradach JL (1998) Franchise organizations. Harvard Business School Press, Cambridge
Carman JM, Klein TA (1986) Power, property and performance in franchising: a review and integration of theory. Res Mark 8:71–130
Castrogiovanni GJ, Justis RT, Julian SD (1993) Franchise failure rates: an assessment of magnitude and influencing factors. J Small Bus Manage April:105–114
Caves RE, Murphy WFII (1976) Franchising: firms, markets and intangible assets. South Econ J 42:572–586
Combs JG, Ketchen DJ Jr, Hoover VL (2004) A strategic groups approach to the franchising–performance relationship. J Bus Ventur 19:877–897
Darr ED, Argote L, Epple D (1995) The acquisition, transfer and depreciation of knowledge in service organizations: productivity in franchises. Manag Sci 41(11):1750–1762
Elango B, Fried VH (1997) Franchising research: a literature review and synthesis. J Small Bus Manag July:68–81
Fenwick GD, Strombom M (1998) The determinants of franchisee performance: an empirical investigation. Int Small Bus J 16(4):28–45
Garud R, Nayyar PR (1994) Transformative capacity: continual structuring by intertemporal technology transfer. Strateg Manag J 15(5):365–385
Gorovaia N (2003) Performance of franchising networks: conceptual framework. In: Paper presented at the EMNet-conference, June, Viena, Austria
Hansen MT (1999) The search-transfer problem: the role of weak ties in sharing knowledge across organization subunits. Admin Sci Q 44(1):82–111
Hart S, Banbury C (1994) How strategy-making processes can make a difference. Strateg Manag J 15(4):251–269
Martin RE (1988) Franchising and risk management. Am Econ Rev 78(5):954–968
Martin RE, Justis RT (1993) Franchising, liquidity constraints and entry. Appl Econ 25:1269–1277
Mundofranquicia Consulting (2005) Directorio de Franquicias y Comercio 2005. Mundofranquicia Consulting, Madrid
Norton SW (1988a) An empirical look at franchising as an organizational form. J Bus 61(2):197–218
Norton SW (1988b) Franchising, brand name capital and the entrepreneurial capacity problem. Strateg Manag J 9(5):105–114
Rodríguez-Benavides MC, Minguela-Rata B, López-Sánchez JI (2008) Transferencia de conocimiento en la creación y en el funcionamiento de los sistemas de franquicia: un estudio empírico. Economía Industrial 368:227–237
Shane SA (1998) Making new franchise systems work. Strateg Manag J 19:697–707
Simon HA (1962) The architecture of complexity. Proc Am Philos Soc 106:467–482
Simonin BL (1999) Ambiguity and the process of knowledge transfer in strategic alliances. Strateg Manag J 20(7):595–623
Sorenson O, Sørensen JB (2001) Finding the right mix: franchising, organizational learning and chain performance. Strateg Manag J 22(6/7):713–724
Szulanski G, Jensen RJ, Lee T (2001) On re-using knowledge: the consequences of adaptation of franchising knowledge for local network growth. Working Paper (10), Reginald H. Jones Center, University of Pennsylvania
Thompson RS (1994) The franchise life cycle and the Penrose effect. J Econ Behav Org 24(2):207–218
Winter SG (1987) Knowledge and competence as strategic assets. In: Teece T (ed) The competitive challenge: strategies for industrial innovation and renewal. Ballinger Publishing, Cambridge
Zander U, Kogut B (1995) Knowledge and the speed of the transfer and imitation of organizational capabilities: an empirical test. Org Sci 6(1):76–92
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Minguela-Rata, B., López-Sánchez, J.I. & Rodríguez-Benavides, M.C. The effect of knowledge complexity on the performance of franchise systems in the service industries: an empirical study. Serv Bus 3, 101–115 (2009). https://doi.org/10.1007/s11628-008-0049-z
Received:
Revised:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11628-008-0049-z