Knowledge attributes and the choice of knowledge transfer mechanism in networks: the case of franchising

Abstract

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

Determinants of a successful cross-border knowledge transfer in franchise networks

“…The results highlight that the franchisor aligns the knowledge transfer mechanisms with the type of knowledge being transferred to their international franchisees, for example the franchisor utilizes emails, documents and manuals to transfer explicit knowledge whereas more informal and personalized mechanisms (e.g., franchisor's agent visit, franchisees' conferences) are used to transfer tacit knowledge. These findings are consistent with previous studies documenting that the franchisor will usually rely on low-information richness mechanisms to transfer explicit knowledge, and will use high-information richness mechanisms to transfer tacit knowledge to their franchisees Windsperger, 2010, 2013;Windsperger and Gorovaia, 2011). Based on these findings, we developed a cross-border knowledge transfer framework in figure 1.…”

“…In order to transfer this type of knowledge, organizations have to use informal/personalized high information richness transfer mechanisms, i.e. project committees, meetings, training and staff transfer (Chen et al, 2014;Gorovaia and Windsperger, 2013;Windsperger and Gorovaia, 2011;Wu, 2015).…”

Determinants of knowledge transfer strategy in franchising: integrating knowledge-based and relational governance perspectives

“…Specifically, in addition to the knowledge attributes used in Windsperger and Gorovaia (2011), we consider trust as additional explanatory variable of the knowledge transfer strategy. Based on the knowledge-based approach, tacitness of system-specific knowledge influences the choice of knowledge-transfer mechanisms.…”

“…In franchising, few studies have focused on the problem of knowledge-transfer between the franchisor and franchisees (Darr, Argote, & Epple, 1995;Minguela-Rata, Lopez-Sanchez, & Rodriguez-Benavides, 2009, 2010Paswan & Wittmann, 2003Paswan, Wittmann, & Young, 2004;Sorenson & Sørensen, 2001;Szulanski & 1118 N. Gorovaia and J. Windsperger Jensen, 2008;Windsperger & Gorovaia, 2011). To the best of our knowledge, only Windsperger and Gorovaia (2011) examined the choice of knowledge-transfer strategy of the franchisor.…”

“…To the best of our knowledge, only Windsperger and Gorovaia (2011) examined the choice of knowledge-transfer strategy of the franchisor. By applying a knowledge-based perspective, they argue that the franchisor will use more HIR-and less LIR-knowledge-transfer mechanisms if the system-specific know-how is tacit.…”