The use of knowledge transfer mechanisms in franchising

Abstract

In this paper, we try to explain the use of knowledge transfer mechanisms in franchising firms by applying the knowledge-based view of the firm that integrates results from the information richness theory. Starting from the information richness theory we argue that the degree of tacitness of system-specific knowledge determines the information richness of the knowledge transfer mechanisms of franchising firms. We examine the following hypotheses:(1) the franchisor uses more knowledge transfer mechanisms with a lower degree of information richness (such as email, intra-and internet), if the tacitness of system-specific knowledge is low, and (2) the franchisor uses more knowledge transfer mechanisms with a higher degree of information richness (such as training, seminar, meetings, visits), if the tacitness of system-specific knowledge is high. We test these hypotheses by using data from 83 franchising firms in the Austrian franchise sector. The data provide partial support for the hypotheses.

Knowledge transfer and isomorphism in franchise networks

“…The success of franchise networks has been attributed to the franchisor's KT capacity (Gorovaia and Windsperger, 2010) and the ability of franchisees' to absorb and apply the knowledge transferred (Minguela-Rata et al, 2010).…”

Brand resonance in franchising relationships: A franchisee-based perspective

“…Knowledge specificity refers to relationship-specific knowledge investments that are tailored to and effective within a specific exchange relationship, and fulfill the purpose of serving an exchange partner better (Chiou & Droge, 2006;Zhao & Wang, 2011). Franchising relationships are highly dependent on the extent to which franchisors develop, customize, and transmit knowledge within franchise systems (Gorovaia & Windsperger, 2010). Franchisees depend on franchisors for system-specific knowledge as well as training, operational and business analysis support from franchisors (Altinay et al, 2014).…”

Economic Sustainability in Franchising: A Model to Predict Franchisor Success or Failure

“…Empirical studies of franchise chain success are more common [20][21][22][23][24][25][26]. From the perspective of organizational learning, Gorovaia and Windsperger [20] argue that the success of a franchise chain can be attributed to the franchisor's capacity to transfer knowledge.…”

“…From the perspective of organizational learning, Gorovaia and Windsperger [20] argue that the success of a franchise chain can be attributed to the franchisor's capacity to transfer knowledge. Minguela-Rata et al [21] report that success stems from the capability of franchisees to absorb and apply the knowledge that has been transferred to them.…”