This study presents an integrative model on the franchisor's choice of knowledge transfer strategy by deriving hypotheses from the knowledge-based theory and the relational governance view. First, based on the knowledge-based view, tacitness of system-specific knowledge influences the choice of the knowledge transfer strategy of the franchisor. The higher the degree of tacitness of knowledge, the more knowledge-transfer mechanisms with a high degree of information richness (HIR) are used, such as training, seminars, visits and formal meetings, and the more likely the franchisor chooses a personalization strategy (P-S). Conversely, the lower the degree of tacitness of system-specific knowledge, the more knowledge transfer mechanisms with a low degree of information richness (LIR) are used, such as reports, emails, intranet, databases, and the more likely the franchisor chooses a codification strategy. Second, based on the relational view of governance, trust influences the choice of knowledge transfer strategy of the franchisor. If trust reduces relational risk, more trust reduces the franchisor's use of HIR-knowledge transfer mechanisms and increases the franchisor's use of LIR-knowledge transfer mechanisms. If trust increases knowledge-sharing between the network partners, it increases the franchisor's use of both HIR-and LIR-knowledge-transfer mechanisms. The hypotheses are tested by using data on the use of the P-S in the Austrian franchise sector. The data provide some support for the hypotheses. A new model on the franchisor's choice of knowledge transfer strategy, using knowledge-based theory and relational view of governance is developed, and specifically, the knowledgebased view of Windsperger and Gorovaia [(2011). Knowledge attributes and the choice of knowledge-transfer mechanisms in networks: The case of franchising. Journal of Management and Governance, 15(4), 617-640] is extended by considering trust as additional explanatory variable of the knowledge-transfer strategy.
This study investigates the performance of franchise networks through the lens of the resource‐based and real options theory. First, according to the resource‐based view, we argue that the intangible resources of the franchisor (system‐specific know‐how and brand name) and the intangible outlet‐specific resources of the franchisees (exploration and exploitation capabilities) positively impact the performance of the franchise system. Second, on the basis of the real option perspective, we show that the franchisor's use of an explicit call option in the franchise contract—as a clause that gives him or her the right to acquire franchise units—increases the franchisor's managerial flexibility and incentives for intangible investments and hence improves the performance of the franchise network. We test the hypotheses with cross‐sectional data from the franchise sector in Germany. The data provide some support of the hypotheses. Our study contributes to the franchise and interorganizational network literature as no prior study has applied the real option perspective to franchising. Copyright © 2013 John Wiley & Sons, Ltd.
In this paper, we try to explain the use of knowledge transfer mechanisms in franchising firms by applying the knowledge-based view of the firm that integrates results from the information richness theory. Starting from the information richness theory we argue that the degree of tacitness of system-specific knowledge determines the information richness of the knowledge transfer mechanisms of franchising firms. We examine the following hypotheses:(1) the franchisor uses more knowledge transfer mechanisms with a lower degree of information richness (such as email, intra-and internet), if the tacitness of system-specific knowledge is low, and (2) the franchisor uses more knowledge transfer mechanisms with a higher degree of information richness (such as training, seminar, meetings, visits), if the tacitness of system-specific knowledge is high. We test these hypotheses by using data from 83 franchising firms in the Austrian franchise sector. The data provide partial support for the hypotheses.
In this paper we develop a knowledge-based view on the choice of knowledge transfer mechanisms in franchising that integrates results from the information richness theory. Starting from the information richness theory we argue that tacitness of system knowledge, operationalized by codifiability, teachability and complexity, determines the information richness of the knowledge transfer mechanisms of franchising firms. We examine the following hypotheses: (1) If the franchisor's knowledge is characterized by a high degree of codifiability and teachability and a low degree of complexity, knowledge transfer mechanisms with a lower degree of information richness are used; (2) If the franchisor's knowledge is characterized by a high degree of complexity and a low degree of codifiability and teachability, knowledge transfer mechanisms with a higher degree of information richness are used. We test these hypotheses by using data from 52 franchising firms in the Austrian franchise sector. The data provide support for the hypotheses. Keywords Knowledge transfer Á Information richness Á Knowledge-based view of the firm Á Tacitness of knowledge Á Franchising 1 Introduction The success of networks, such as franchising networks, strategic alliances, joint ventures and clusters, is highly dependent on the ability to create and transfer knowledge within the network (e.g. Albino et al. 1999; Maskell and Malmberg
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