Sage Journals: Discover world-class research

Abstract

PROFESSOR JOHN STANWORTH IS DIRECTOR of the International Franchise Research Centre, at the University of Westminster, England, and Professor Patrick Kaufmann is associate professor of marketing at Georgia State University, USA. The dominant quest for 'independence' (and allied intrinsic satisfactions) among those entering self-employment has been well-documented in the UK, the USA and elsewhere. This appears to hold true for those entering franchising as well as those staging an entry into more conventional small businesses. However, in addition to this, franchising, as a 'tried-and-tested' business format is designed to appeal to motives of economic security far sooner than would normally be the case in a small business career. Additionally, franchisors frequently acknowledge the changing developmental nature of franchisee motivation over the lifespan of a career in franchising and yet, to date, no theoretical framework has been developed to aid an understanding of the dynamic and changing nature of franchisee motivation and its behavioural implications. This current paper represents a first stage attempt at construction of a motivational model capable of being extended through the full career of a franchisee. The research reported here examines data drawn from 728 face-to-face interviews with individuals ('potential franchisees') attending franchise exhibitions held in London, England, and Washington DC, USA, during the spring of 1994. The results indicate marked similarities. The sample is disaggregated into three distinct sub-samples which are then treated as cross-sectional in terms of their socialisation into patterns of motives normally associated with self-employment. The model which emerges is seen as being capable of being extended through the entire career of a franchisee and the paper points to areas of future research required to develop further this process of model construction.

Get full access to this article

View all access options for this article.

References

Bannock, G. , and Daly, M. (eds.) (1994), Small Business Statistics, Paul Chapman Publishing.

Bradach,J. (1994), 'Chains Within Chains: The Role of Multi-unit Franchises', 8th Conference of the Society of Franchising, Nevada.

Bradach,J. , and Kaufmann, P. (1988), 'Franchisee or Independent Business person: Some Observations on the Decision Process', in: Research at the Marketing/Entrepreneurship Interface, Hills, G. E. , and LaForge, W. (eds.), Chicago: University of Illinois at Chicago, pp 38-48.

Bogenhold, D. , and Staber, U. (1993), 'Self-Employment Dynamics: A Reply to Meager', Work, Employment and Society, Vol. 7, No. 3, pp 465-472.

Boyle, E. (1994), 'The Rise of the Reluctant Entrepreneurs', International Small Business Journal, Vol. 12, No. 2, pp 63-69.

Brickley, J. , and Dark, F. (1987), 'The Choice of Organisational Form: The Case of Franchising', Journal of Financial Economics, Vol. 18, No. 2, June, pp 401-420.

Caves, R. , and Murphy, W. (1976), 'Franchising: Firms, Markets and Intangible Assets', Southern Economic Journal, No. 42, April, pp 572-586.

Davidson, J., O'Connell (1994), 'What Do Franchisors Do? Control and Commercialisation in Milk Distribution', Work, Employment and Society, Vol. 8, No. 1.

Department of Trade and Industry (1994), Small Firms in Britain Report.

10.

Felstead, A. (1993), 'Hindsight/Foresight: The Effect of Outcome Knowledge onjudgement Under Uncertainty', Journal of Experimental Psychology: Human Perception and Performance, Vol. 1, No. 3, pp 288-299.

11.

Granger, B. , Stanworth, J. , and Stanworth, C. (1995), 'Self-Employment Career Dynamics: The Case of 'Unemployment Push' in UK Book Publishing', Work, Employment and Society, Vol. 9, No. 3, pp 499-516.

12.

Heide,J. (1994), 'Interorganisational Governance in Marketing Channels', Journal of Marketing, Vol. 58 (January), pp 71-85.

13.

Hough,J. (1986), Power and Authority and their Consequences in Franchise Organisations A Study of the Relationship Between Franchisors and Franchisees, unpublished PhD thesis, University of Westminster.

14.

Izraeli, D. (1972), Franchising and the Total Distribution System, London, UK Longman.

15.

Knight, R. M. (1986), 'Franchising From the Franchisor and Franchisee Points of View', Journal of Small Business Management, July, pp 8-15.

16.

Lafontaine, F. (1992), 'Agency Theory and Franchising: Some Empirical Results', RandJournal of Economics, No. 23, pp 263-283.

17.

Lal, R. (1990), 'Improving Channel Co-ordination Through Franchising', Marketing Science, No. 9, pp 299-318.

18.

Martin, R. (1988), 'Franchising and Risk Management', American Economic Review, Vol. 788, No. 5, pp 954-968.

19.

McIntyre, F. , Gilbert, F. , and Young,J. (1994), 'Franchising: A Strategic Perspective', 8th Conference of the Society of Franchising, Nevada.

20.

National Westminster Bank/British Franchise Association Franchise Surveys (1990, 1991), London.

21.

Norton, S. (1988), 'An Empirical Look at Franchising as an Organisational Form', Journal of Business, No. 61, pp 197-217.

22.

Oxenfeldt, A. , and Kelly, A. (1968), 'Will Successful Franchise Systems Ultimately Become Wholly-owner Chains?', Journal of Retailing, Vol. 44, No. 4, pp 19-83.

23.

Ozanne, U. , and Hunt, S. (1971), The Economic Effects of Franchising, Washington D.C.: Select Committee on Small Business, US Senate.

24.

Peterson, A. , and Dant, R. (1990), 'Perceived Advantages of the Franchise Option from the Franchisee Perspective: Empirical Insights from a Service Franchise', Journal of Small Business Management, Vol. 28, No. 3, pp 46-61.

25.

Rainbird, H. (1991), 'The Self-employed: Small Entrepreneurs or Disguised Wage Labourers?', in: Pollert, A. (ed.), Farewell to Flexibility?, Oxford, Blackwell, pp 200-214.

26.

Rose, A. M. (ed.) (1962), Human Behaviour and Social Processes An Interactionist Approach, London: Routledge and Kegan Paul.

27.

Rubin, P. (1978), 'The Theory of the Firm and the Structure of the Franchise Contract', Journal of Law and Economics, Vol. 21, No. 1, pp 223-233.

28.

Silverman, D. (1970), The Theory of Organisations, London: Heinemann.

29.

Stanworth,J. , and Curran,J. (1976), 'Growth and the Small Firm An Alternative View', Journal of Management Studies, Vol. 3, No. 2, pp 95-110.

30.

Stanworth,J. (1977), A Study of Franchising in Britain, University of Westminster, London.

31.

Stanworth,J. (1984), A Study of Power Relationships and their Consequences in Franchise Organisation, University of Westminster.

32.

Stanworth, J. , Curran, J. , and Hough, J. (1984), 'The Franchised Small Business: Formal and Operational Dimensions of Independence', in: Lewis, J. , Stanworth, J. , and Gibb, A. (eds.), Success and Failure in Small Business, Aldershot, England: Gower Publishing, pp 157-177.

33.

Stanworth,J. , Stanworth, C. , Granger, B. , and Blythe, S. (1989), 'Who Becomes an Entrepreneur?'. International Small Business Journal, Vol. 8, No. 1, pp 11-22.

34.

Stanworth,J. , and Gray, C. (1991), Bolton 20 Years On The Small Firm in the 1990s, London: Paul Chapman Publishing.

35.

Stanworth,J. , and Purdy, D. (1993), The Blenheim/University of Westminster Franchise Survey No. 1, International Franchise Research Centre, University of Westminster, London.

36.

Stanworth,J. (1994), 'The Franchise Relationship Entrepreneurship or Dependence?', Journal of Marketing Channels, Vol. 4, Nos. 1/2, pp 161-176.

37.

Spriggs, M. , and Nevin, J. (1994), 'Understanding the Nature of the Franchise Relationship: A Key to Theory Development', 8th Conference of the Society of Franchising, Nevada.

38.

Williamson, O. (1979), 'Transaction Cost Economics: the Governance of Contractual Relations', Journal of Law and Economics, Vol. 22, No. 2, pp 233-261.

Similarities and Differences in UK and US Franchise Research Data: Towards a Dynamic Model of Franchisee Motivation

Abstract

Get full access to this article

References