Drawing from resource-based theory, we argue that family firm franchisors behave and perform differently compared to non-family firm franchisors. Our theorizing suggests that compared to a non-family firm franchisor, a family firm franchisor cultivates stronger relationships with franchisees and provides them with more training. Yet, we predict that a family firm franchisor achieves lower performance than a non-family firm franchisor. We argue, however, that this performance relationship reverses itself when family firm franchisors are older and larger. We test our hypotheses with a longitudinal dataset including a matched-pair sample of private U.S. family and non-family firm franchisors.
- corporate entrepreneurship
- family firm
Chirico, F., Welsh, D. H. B., Ireland, D., & Sieger, P. (2020). Family versus non‐family firm franchisors: behavioral and performance differences. Journal of Management Studies. https://doi.org/10.1111/joms.12567