Knowledge creation and business format franchising

Abstract

PurposeThis article aims to contribute to the study of knowledge creation and management in business format franchising by focusing on the question of how franchisors can convert the tacit knowledge held by franchisees (such as insights, ideas, and hunches) to explicit knowledge.Design/methodology/approachThe article is conceptual and is largely anchored on the assumptions of the knowledge management, theories of organisational learning and organisational knowledge creation theory.FindingsThe findings emphasise that the conversion of franchisees' tacit knowledge to new explicit knowledge is one of the key knowledge management practices required for successful business format franchising. Proposes that the concept of ba has much to offer in considering knowledge management in a business format franchise system.Research limitations/implicationsWith regard to future research avenues, conceptual and empirical studies are both needed to obtain a clearer understanding of the dynamic process of knowledge creation under business format franchising.Practical implicationsThe article sensitises franchisors to think how knowledge is created under business format franchising, and in particular how the tacit knowledge that franchisees provide can be converted into the form of explicit knowledge. Underlines that franchisors can never control and direct dynamic process of knowledge creation among franchisees, but a franchisor can provide certain conditions that lead franchisees and other members of franchise system to create and disseminate knowledge.Originality/valueThe article proposes that both tacit and explicit knowledge under business format franchising are created in formal or informal groups encompassing bas that may span both horizontally and vertically throughout the business format franchise system.

Internacionalização de serviços pelo sistema de franquias: diretrizes para uma empresa de desenvolvimento de software

“…Dentre as diversas formas para a internacionalização, a franquia tem se destacado como uma das maiores forças propulsoras no processo de globalização das empresas de serviços (Pedro, Filipe, Reis, 2008), surgindo como uma alternativa estratégica para a internacionalização dessas organizações (Preble, 1992). Uma franquia pode ser caracterizada por um contrato que estipula as obrigações de duas partes (o franqueador e o franqueado) (Pfister et al, 2006;Sundbo et al, 2001) em que uma (a franqueadora) concede à outra (a franqueada) o direito de utilizar o seu nome, a sua marca, produzir os seus bens e/ou serviços; em troca do pagamento de uma taxa (Connel, 1997;Lindblom;Tikkanen, 2010;Pfister et al, 2006;Tikoo, 2005).…”

“…Dessa forma, em função do crescimento desse setor, a franquia tem se tornado uma estratégia popular (Lindblom & Tikkanen, 2010) e amplamente reconhecida pelas empresas como uma excelente oportunidade para a expansão de seus mercados (Doherty, 2007).…”

Examining the Relationship between Organizational Identification and Learning Organization Dimensions: A Study of a U.S. Franchise

“…Studies explored the development of knowledge within the franchise network and migration of that knowledge throughout the network both among the franchisees and between a franchisee and franchisor (Darr, Argote, & Epple, 1995;Hoy, 2008;Kalnin & Mayer, 2004;Knot & McKelvey, 1999;Lindblom & Tikkanen, 2010;Sorenson & Sorensen, 2001;Watson et al, 2005). These studies showed how information originates and flows throughout the network; however, the perception of a presence of the dimension of a learning organization across the franchise network is underexplored.…”

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

“…For example, the study by Szulanski (1996) found that most of the difficulties that have been found in transferring largely tacit knowledge are a result of the recipient's lack of experience to make effective use of new ideas, and due to the arduous relationships (according to him that is laborious and distant) between the source and the recipient. In a cross-border franchising context, the franchisors need to transfer both explicit knowledge, such as product and pricing information and also tacit knowledge, for example about new products and process development, to enable their franchisees to operate their units successfully (Gorovaia and Windsperger, 2013;Griessmair et al, 2014;Lindblom and Tikkanen, 2010;Watson et al, 2005). These knowledge characteristics then affect the process and success of the knowledge transfer in the cross-borders franchise networks.…”

“…Knowledge is considered to be an important resource for franchisors, as franchisors develop competitive advantage on the basis of a unique business concept (Gorovaia and Windsperger, 2013;Lindblom and Tikkanen, 2010;Paswan and Wittmann, 2009;Wu, 2015). For example, Paswan and Wittmann (2009) have noted that a franchisee's success depends on their ability to leverage the knowledge of their franchisors.…”