Franchising and the Family Firm: Creating Unique Sources of Advantage through “Familiness”

Abstract

The paucity of research examining family firms engaged with franchising is surprising. We theorize about differences in franchising behavior between family and nonfamily firms and the relative advantages accruing to family firms in this context. We also explore how selection processes tend to lead to family franchisor/family franchisee matches that enable a more effective sharing of complementary resources. The theoretical framework we develop is grounded in the “familiness” of the family firm as suggested by the logic of the resource–based view. Additionally, our theoretical analysis extends and complements the frequent use of agency theory as the basis for studying franchising.

Simulating Dynamic Capabilities and Value Creation in Family Firms

“…At least some of the features of the relationships that occur in the family-firm context could probably generalize to other organizations (see Arregle et al, 2007;Chirico et al, 2011). Recently, Pearce (2005) claimed that paternalism is never completely removed from even the most rationalistic organizations.…”

Generational Involvement in the Top Management Team of Family Firms: Exploring Nonlinear Effects on Entrepreneurial Orientation

“…For instance, Ling and Kellermanns (2010: 326) argue that when "younger generations enter the family firm, there is an increase in more entrepreneurial orientations." Specifically, this potential is based on how heterogeneous knowledge in multigenerational family TMTs supports differences in the noticing and interpretation of cues for opportunities in the marketplace (Cruz & Nordqvist, 2012) as well as in the response needed to exploit these opportunities (Chirico, Ireland & Sirmon, 2011). When managers use heterogeneous knowledge and experience, they can see problems from different angles and consequently arrive at more creative and innovative ideas through productive discussions around the tasks to be performed (Burgelman & Hitt, 2007;Fiol, 1994;Jehn, 1995).…”

Family entrepreneurship as a field of research: Exploring its contours and contents

“…She identifies as specific aspects of RBV in this context as: familiness, the 3P model (parsimony, personalism, and particularism), long term orientation, social capital, and the resource management model for wealth creation. Familiness is one of the most relevant and represents an intangible one which confers competitive advantage to family firms (since non-family firms do not possess it) (Chirico, Ireland, & Sirmon, 2011). The concept of familiness refers to "the unique bundle of resources a particular firm has because of the systems interaction between the family, its individual members, and the business" (Habbershon & Williams, 1999 :11).…”