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Antecedents of franchisee responses to franchisor-initiated strategic change

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International Small Business Journal

Published online on

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 franchisees’ 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 franchisees’ responses to change. Overall, franchisees’ expected profitability and trust are the most important antecedents. Additionally, the franchisees’ non-economic motivations to running a franchise influence their decisions to take-up alternative opportunities and diminish the importance of switching costs in this process. Finally, actions of parties outside the existing franchise relationship may influence franchisee decisions to switch systems.