Strategic agility explanations for managing franchising expansion during economic cycles
Journal article, Peer reviewed
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OriginalversjonCompetitiveness Review: an international business journal. 2017, 27 (2), 113-131. 10.1108/CR-04-2016-0022
Purpose This paper aims to demonstrate how franchising firms can manage system expansion by weathering the economic effects of a location (i.e. country-level economic cycles) by shifting their resources. Design/methodology/approach The authors use a comprehensive database of 151 US hybrid franchising organizations, including observations for the years between 2001 and 2008. Data analysis is conducted with count model panel data with a Poisson distribution. Findings The model reveals a curvilinear U-shaped relationship between location (i.e. economic cycles) and franchising expansion. Originality/value This study contributes to competitiveness literature by showing how franchising firms respond to changing local conditions.