The determinants of entrepreneurial strategy processes in franchising were identified as external environment, entrepreneurial strategy, mechanistic-organic structure, and financial performance. The primary purpose of this study was to explore a model that examines the relationships among the external environment, entrepreneurial strategy, mechanistic-organic structure, and financial performance of restaurant franchisors from the perspective of the franchisees. Structural equation modeling (SEM) was employed to develop this exploratory model. The final structural model indicated that franchisors’ external environment forces such as competition, politics, technology, and price wars are perceived as having a negative effect on franchisor’s financial performances. Restaurant franchisees perceive that franchisors’ entrepreneurial strategies such as aggressive expansion of franchise units, innovative system development, and menu development to meet local needs make a highly positive contribution to franchisors’ financial performance. Franchisees also perceived that franchisors’ entrepreneurial strategies and mechanistic-organic structure could have a significantly and mutually positive effect on each other.
This study attempts to develop a measurement model of competitiveness utilized in the tourism sector, which appears to be fundamentally different in nature from traditional goods and services. Tourism destination competitiveness reflecting the generic characteristics should be considered diversified to notice the distinctive perspective between the business environment and competitive advantages. Criticism of some prior conventional literature stems from the lack of a rigorous process to find the structure and attributes of the measurement items for a destination’s business environment and competitive advantages. The available theoretical framework and measures containing the destination business environment and competitive advantages warrant further investigation. The vital dimensions of the destination business environment (i.e., dynamism, hostility, turbulence, investment, information technology, and governance) and destination competitive advantages (i.e., defensiveness, local acceptance, accessibility, reasonability, uniqueness, supportiveness, and image sustainability) were successfully identified through quantitative and empirical analysis, which could provide a significant basis for managerial and policy decisions in the tourism industry.
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