Network or Independent Business? Entrepreneurs' Human, Social and Financial Capital as Determinants of Mode of Entry

Bastié, Françoise; Cussy, Pascal; Nadant, Anne‐Laure Le

doi:10.1002/mde.2709

Cited by 12 publications

(14 citation statements)

References 35 publications

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“…We contribute to franchising research by enhancing scientific knowledge on the antecedents of individual intentions to become franchisees as a specific type of EI. Whereas, previous studies have shown the relevance of economic, strategic, and demographic variables in explaining individual EI regarding franchising (Bastié et al, 2016;Watson and Stanworth, 2006), our study demonstrates that motivational, and cognitive, variables are also relevant. The adoption of AMT, in combination with TPB, has proven fruitful in our study as our analysis of primary data on 666 individuals ('non-entrepreneurs') shows non-linear associations between motivation, on one hand, and cognitive assessment of franchising or EI regarding franchising, on the other hand.…”

Section: Theoretical Implicationscontrasting

confidence: 95%

Who wants to be a franchisee? Explaining individual intentions to become franchisees

Croonen

Bij

Perrigot

et al. 2021

International Small Business Journal

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An important challenge for franchisors is to find individuals with strong intentions to become franchisees that they can actively support in this ambition. We contribute to franchising research by developing and testing a model to explain individual intentions to become franchisees as a specific type of entrepreneurial intention (EI). We combine Achievement Motivation Theory (AMT) with the Theory of Planned Behaviour (TPB) to propose inverted U-shaped associations between individual motivations (i.e. need for achievement and risk-taking propensity), their cognitive assessments of franchising (i.e. attitude towards franchising and perceived behavioural control), and their EI regarding franchising. Our survey of 666 individuals demonstrates that need for achievement impacts attitude towards franchising and perceived behavioural control regarding franchising following respectively inverted U-shaped and declining positive relationships, and they partly mediate the relationships between need for achievement and EI regarding franchising. We find a negative linear association with attitude towards franchising.

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Section: Theoretical Implicationscontrasting

confidence: 95%

Who wants to be a franchisee? Explaining individual intentions to become franchisees

Croonen

Bij

Perrigot

et al. 2021

International Small Business Journal

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“…Also, there is an indirect relationship between government policy (through Nigerian infrastructural development) and SME's financial aid and accessibility and employment generation (b = 0.52, 0.43; p < 0.05, supporting Ho7 and Ho8). The indirect impact shows that government policy has been very helpful in helping entrepreneurs gain access to financial aid and thereby creating more employment opportunities for youths in Nigeria (Bastiéa et al, 2016). The findings align with the work of Carsamer (2012) and Galindoa and Mendez (2014) as they found that the central bank of Nigeria's intervention on financial loans to SMEs in Nigeria has been a key support to business growth and employment creation in Nigeria.…”

Section: Hypotheses Testingsupporting

confidence: 75%

The gains and pains of small and medium-scale enterprises (SMEs): the way forward for entrepreneurship development in Nigeria

Olaore

Adejare

Udofia

2021

RAMJ

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Purpose The purpose of this study is to assess the role of small and medium-scale enterprises (SMEs) as a catalyst to all things good in great economies; however, sadly, Nigeria has been unable to unlock SME development and the many benefits. The paper’s examination revolves around SMEs and entrepreneurial development, employment generation, government policies and financial aid and its availability. With the intention of establishing the relevance of government role in creating vibrant economies via thriving SMEs and its ripple effect on employment generation. Design/methodology/approach The study adopts a survey design, using a questionnaire for data gathering and percentile, confirmatory factor analysis (CFA) and structural equation modelling (SEM) for data analysis. Findings The study established a significant direct relationship between entrepreneurship development and infrastructure development and employment generation. Also, there was a significant direct relationship between government policies and infrastructure development. However, surprisingly, there was an insignificant relationship between government policy and financial aid and accessibility. Practical implications The government’s role in SMEs’ survival and entrepreneurship development is invaluable. The government must live up to their bidding and create an enabling environment to promote SME and entrepreneurship growth. Only this will transform the economy and minimize unemployment to its barest minimum. Originality/value The study’s research model is an interesting contribution to the body of work in SME and entrepreneurship development. The study is also an original attempt at having a good representation of the South-Western part of Nigeria, as research in high impact journals is usually domiciled in one state.

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“…However, the added support and training may be perceived as favourable and maybe even necessary to the entrepreneur capable of acquiring and then managing the financial and knowledge-based capital needed to successfully navigate the added complexities of the franchise arrangement. Bastie et al (2016) support this contention in their findings that higher levels of both human and social capital, as measured by levels of education and familiarity with franchisees, are significant determinants of franchising.…”

Section: Human Capital Theorymentioning

confidence: 83%

Predicting Organizational Form Choice from Pre-Entry Characteristics of Franchisees

Weaven

Baker

Frazer

et al. 2018

Australasian Marketing Journal

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To the best of our knowledge, the research reported here represents the first attempt to analyze how beliefs and attitudes toward one's own abilities influence business form choice. We present a set of five hypotheses associated with an individual's perception of their own business acumen, business purchase determination, self-efficacy, self-regulatory focus and attitude toward customers that serve to predict an individual's choice of either franchising or independent business ownership. We also examine how these pre-entry orientations may or may not predict survival or failure across the two business models. The analysis of data gathered from 1186 Australian business operators reveals that the variables of interest do, in fact, predict business model choice but results also suggest that other factors are more predictive of survival or failure. We conclude that the key to marketing channel efficacy resides within the complementarity, or “fit”, between human form and structural form.

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Network or Independent Business? Entrepreneurs' Human, Social and Financial Capital as Determinants of Mode of Entry

Cited by 12 publications

References 35 publications

Who wants to be a franchisee? Explaining individual intentions to become franchisees

Who wants to be a franchisee? Explaining individual intentions to become franchisees

The gains and pains of small and medium-scale enterprises (SMEs): the way forward for entrepreneurship development in Nigeria

Predicting Organizational Form Choice from Pre-Entry Characteristics of Franchisees

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