Comparison Study Between Family Business Franchisee and Non-Family Business Franchisee
DOI:
https://doi.org/10.37134/jcit.vol10.2.2020Keywords:
Family Business, Franchising, Family FirmsAbstract
This research is examining the entrepreneur’s involvement in family business franchisee and non-family business franchisee. In addition, this study discussed about the differences of these both of business based on factors such as intrinsic reward, perceived autonomy and family. The factors are developed from goal setting theory and agency theory are used as the basis for studying franchising. The quantitative methodology is adopted for this study and the result shows that perceived economy is not significant meanwhile the intrinsic reward and family is significant.
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References
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Arregle, J.L., Hitt, M.A., Sirmon, D.G., & Very, P. (2007). The development of organizational social capital: Attributes of family firms. Journal of management studies, 44(1), 73-95.
Baena, V. (2011). The effect of corruption on global franchising in emerging markets. International Journal of Business and Emerging Markets, 3(1), 57.
Bawn, J.R., Locke, E.A., & Smith, K.O. (2001). A multidimensional model of venture growth. Academy of Management Journal, 44(2), 292-303.
Benzing, C., Chu, H.M., & Kara, O. (2009). Entrepreneurs in Turkey: A factor analysis of motivations, success factors, and problems. Journal of Small Business Management, 47(1), 58-91.
Benzing, C., Chu, H.M., & Callanan, G. (2005). Regional comparison of the motivation and problems of vietnamese entrepreneurs. Journal of Developmental Entrepreneurship, 10(1), 3-27.
Berthold, N., & Neumann, M. (2008). The motivation of entrepreneurs: are employed managers and self-employed owners different? Intereconomics, 43(4), 236-244.
Bird, B. (1988). Implementing entrepreneurial ideas: The case for intention. Academy of management Review, 13(3), 442-453.
Boyd, D.P., & Gumpert, D.E. (1983). Coping with entrepreneurial stress. Harvard business review, 61(2), 44.
Brickley, J.A., Dark, F.H., & Weisbach, M.S. (1991). An agency perspective on franchising. Financial Management, 20(1), 27-35.
Cabrera-Suárez, K., De Saá-Pérez, P., & García-Almeida, D. (2001). The succession process from a resource- and knowledge-based view of the family firm. Family Business Review, 14(1), 37–46.
Cavaliere, F.J., & Swerdlow, M.R. (1988). Why Franchise? Business Forum, 13(3), 11-13.
Chirico, F. (2008). Knowledge accumulation in family firms. Evidence from four case studies. International Small Business Journal, 26(4), 433–462.
Chirico, F., Ireland, R.D., & Sirmon, D.G. (2011). Franchising and the Family Firm: Creating Unique Sources of Advantage Through “Familiness”. Entrepreneurship Theory and Practice, 35(3), 483–501.
Cliquet, G., & Pénard, T. (2012). Plural form franchise networks: A test of Bradach’s model. Journal of Retailing and Consumer Services, 19(1), 159–167.
Combs, J.G., & Ketchen, D.J. (1999). Can capital scarcity help agency theory explain franchising? Revisiting the capital scarcity hypothesis. The Academy of Management Journal, 42(2), 196–207.
Combs, J.G., Michael, S.C., & Castrogiovanni, G.J. (2004). Franchising: A review and avenues to greater theoretical diversity. Journal of Management, 30(6), 907–931.
Czinkota, M.R., & Ronkainen, I.A. (2010). International Marketing. (10th ed.). Mason: South Western Cengage Learning.
Czinkota, M.R., Ronkainen, I.A., & Donath, B. (2004). Mastering global markets: strategies for today's trade globalist. Mason: Thomson South Western.
Daft, R. L. (2012). New Era of Management. Tenth edition. Singapore: Cengage Learning.
Dant, R.P., Grünhagen, M., & Windsperger, J. (2011). Franchising research frontiers for the twenty-first century. Journal of Retailing, 87(3), 253–268.
Donnelley, R.G. (1988). The family business. Family Business Review, 1(4), 427–445.
Gómez-Mejía, L.R., Haynes, K.T., Núñez-Nickel, M., Jacobson, K.J., & Moyano-Fuentes, J. (2007). Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative science quarterly, 52(1), 106-137.
Gray, K.R., Foster, H., & Howard, M. (2006). Motivations of Moroccans to be entrepreneurs. Journal of Developmental Entrepreneurship, 11(04), 297-318.
Habbershon, T.G., Williams, M., & Macmillan, I.C. (2003). A unified systems perspective of family firm performance. Journal of Business Venturing, 18(4), 451–465.
Hair, J.F., Money, A.H., Samouel, P., & Page, M. (2011). Essentials of business research methods. (2nd ed.). United States of America: M.E SHarpe.Inc.
Hellriegel, D., Jackson, S.E., & Slocum, J.W. (2004). Management. Ohio: South Western.
Hizam-Hanafiah, M. (2012). The relationship between goal attainment and intention to remain in a franchise system in Malaysia. University of Essex: Unpublished PhD thesis.
Ishak, K.A., Wei, F.C.C., & Romle, A.R. (2016). The roles of trust in franchising relationship: the Malaysian franchisees’ perspectives. Middle-East Journal of Scientific Research, 24(6), 2071-2078.
Iyengar, S.S., & Lepper, M.R. (1999). Rethinking the value of choice: A cultural perspective on intrinsic motivation. Journal of personality and social psychology, 76(3), 349-366.
Johnson, B.R. (1990). Toward a multidimensional model of entrepreneurship: the case of achievement motivation and the entrepreneur. Entrepreneurship Theory and Practice, 14(3), 39-54.
Kaufmann, P.J. (1999). Franchising and the choice of self-employment. Journal of Business Venturing, 14(4), 345-362.
Kaufmann, P.J., & Stanworth, J. (1995). The decision to purchase a franchise: A study of prospective franchisees. Journal of Small Business Management, 33(4), 22-32.
Kidwell, R.E., Nygaard, A. & Silkoset, R. (2007). Antecedents and effects of free riding in the franchisor – franchisee relationship. Journal of Business Venturing, 22(4), 522-544.
Klein, H.J. (1991). Further evidence on the relationship between goal setting and expectancy theories. Organizational Behaviour and Human Decision Processes, 49(2), 230-257.
Knight, R.M. (1984). The independence of the franchise entrepreneur. Journal of Small Business Management, 22(2), 53-61.
Kreitner, R. (2001). Management. (8th ed). Boston: Houghton Mifflin Company.
Kuratko, D.F., Hornsby, J.S., & Naffziger, D.W. (1997). An examination of owner's goals in sustaining entrepreneurship. Journal of small business management, 35(1), 24.
Lee, J. (2006). Family Firm Performance: Further Evidence. Family Business Review, 19(2), 103-114.
Locke, E. A. (1996). Motivation through conscious goal setting. Applied and preventive psychology, 5(2), 117-124.
Moore, C.W., Petty, J.W., Palich, L.E., & Longenecker, J.G. (2010). Managing Small Business: An Entrepreneurial Emphasis. (15th ed.). Singapore: South-Western.
Naylor, J. (2003). Management. Essex: Pearson Education Limited.
Paik, Y., & Choi, D.Y. (2007). Control, autonomy and collaboration in the fast food industry: a comparative study between domestic and international franchising. International Small Business Journal, 25(5), 539-562.
Pearson, A.W., Carr, J.C., & Shaw, J.C. (2008). Toward a theory of familiness: A social capital perspective. Entrepreneurship Theory and Practice, 32(6), 949–969.
Porter, L.W., Bigley, G.A., & Steers, R.M. (2003). Motivation and Work Behaviour. (7th ed.). New York: Mc-Graw Hill.
Price, S. (1996). Behind the veneer of success: Propensities for UK franchisor failure. London: Small Business Research Trust Report.
Robichaud, Y., McGraw, E., & Alain, R. (2001). Toward the development of a measuring instrument for entrepreneurial motivation. Journal of Developmental Entrepreneurship, 6(2), 189.
Rosado-Serrano, A. (2017). Franchising as strategy for internationalization of family firms: An exploratory study. Neumann Business Review, 3(1), 145–165.
Rubin, P.H. (1978). The Theory of the Firm and the Structure of the Franchise Contract. The Journal of Law and Economics, 21(1), 223–233.
Schaper, M., Volery, T., Weber, P., & Lewis, K. (2011). Entrepreneurship and small business. Third Asia Pacific Edition. Queensland: John Wiley & Sons.
Sekaran, U., & Bougie. (2010). Research methods for business: A skill building approach. Haddington: A John Wiley and Sons, Ltd Publication.
Shinnar, R.S. & Young, C.A. (2008). Hispanic Immigrant Entrepreneurs in the Las Vegas Metropolitan Area: Motivations for Entry into and Outcomes of Self-Employment. Journal of Small Business Management, 46(2), 242-262.
Sirmon, D.G., & Hitt, M.A. (2003). Managing resources: linking unique resources, management, and wealth creation in family firms. Entrepreneurship Theory and Practice, 27(4), 339–358.
Tuunanen, M., & Hyrsky, K. (2001). Entrepreneurial paradoxes in business format franchising: An empirical survey of finnish franchisees. International Small Business Journal, 19(4), 47-62.
Wang, C., Walker, E.A., & Redmond, J. (2006). Ownership motivation and strategic planning in small business. Journal of Asia Entrepreneurship and sustainability, 2(4), 50.
Welsh, D.H.B., & Raven, P.V. (2011). Hope among franchise leaders: Why hope has practical relevance to franchising-an exploratory study. Canadian Journal of Administrative Sciences, 28(2), 134-142.
Zellweger, T. (2007). Time horizon, costs of equity capital, and generic investment strategies of firms. Family Business Review, 20(1), 1–15.
Arregle, J.L., Hitt, M.A., Sirmon, D.G., & Very, P. (2007). The development of organizational social capital: Attributes of family firms. Journal of management studies, 44(1), 73-95.
Baena, V. (2011). The effect of corruption on global franchising in emerging markets. International Journal of Business and Emerging Markets, 3(1), 57.
Bawn, J.R., Locke, E.A., & Smith, K.O. (2001). A multidimensional model of venture growth. Academy of Management Journal, 44(2), 292-303.
Benzing, C., Chu, H.M., & Kara, O. (2009). Entrepreneurs in Turkey: A factor analysis of motivations, success factors, and problems. Journal of Small Business Management, 47(1), 58-91.
Benzing, C., Chu, H.M., & Callanan, G. (2005). Regional comparison of the motivation and problems of vietnamese entrepreneurs. Journal of Developmental Entrepreneurship, 10(1), 3-27.
Berthold, N., & Neumann, M. (2008). The motivation of entrepreneurs: are employed managers and self-employed owners different? Intereconomics, 43(4), 236-244.
Bird, B. (1988). Implementing entrepreneurial ideas: The case for intention. Academy of management Review, 13(3), 442-453.
Boyd, D.P., & Gumpert, D.E. (1983). Coping with entrepreneurial stress. Harvard business review, 61(2), 44.
Brickley, J.A., Dark, F.H., & Weisbach, M.S. (1991). An agency perspective on franchising. Financial Management, 20(1), 27-35.
Cabrera-Suárez, K., De Saá-Pérez, P., & García-Almeida, D. (2001). The succession process from a resource- and knowledge-based view of the family firm. Family Business Review, 14(1), 37–46.
Cavaliere, F.J., & Swerdlow, M.R. (1988). Why Franchise? Business Forum, 13(3), 11-13.
Chirico, F. (2008). Knowledge accumulation in family firms. Evidence from four case studies. International Small Business Journal, 26(4), 433–462.
Chirico, F., Ireland, R.D., & Sirmon, D.G. (2011). Franchising and the Family Firm: Creating Unique Sources of Advantage Through “Familiness”. Entrepreneurship Theory and Practice, 35(3), 483–501.
Cliquet, G., & Pénard, T. (2012). Plural form franchise networks: A test of Bradach’s model. Journal of Retailing and Consumer Services, 19(1), 159–167.
Combs, J.G., & Ketchen, D.J. (1999). Can capital scarcity help agency theory explain franchising? Revisiting the capital scarcity hypothesis. The Academy of Management Journal, 42(2), 196–207.
Combs, J.G., Michael, S.C., & Castrogiovanni, G.J. (2004). Franchising: A review and avenues to greater theoretical diversity. Journal of Management, 30(6), 907–931.
Czinkota, M.R., & Ronkainen, I.A. (2010). International Marketing. (10th ed.). Mason: South Western Cengage Learning.
Czinkota, M.R., Ronkainen, I.A., & Donath, B. (2004). Mastering global markets: strategies for today's trade globalist. Mason: Thomson South Western.
Daft, R. L. (2012). New Era of Management. Tenth edition. Singapore: Cengage Learning.
Dant, R.P., Grünhagen, M., & Windsperger, J. (2011). Franchising research frontiers for the twenty-first century. Journal of Retailing, 87(3), 253–268.
Donnelley, R.G. (1988). The family business. Family Business Review, 1(4), 427–445.
Gómez-Mejía, L.R., Haynes, K.T., Núñez-Nickel, M., Jacobson, K.J., & Moyano-Fuentes, J. (2007). Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative science quarterly, 52(1), 106-137.
Gray, K.R., Foster, H., & Howard, M. (2006). Motivations of Moroccans to be entrepreneurs. Journal of Developmental Entrepreneurship, 11(04), 297-318.
Habbershon, T.G., Williams, M., & Macmillan, I.C. (2003). A unified systems perspective of family firm performance. Journal of Business Venturing, 18(4), 451–465.
Hair, J.F., Money, A.H., Samouel, P., & Page, M. (2011). Essentials of business research methods. (2nd ed.). United States of America: M.E SHarpe.Inc.
Hellriegel, D., Jackson, S.E., & Slocum, J.W. (2004). Management. Ohio: South Western.
Hizam-Hanafiah, M. (2012). The relationship between goal attainment and intention to remain in a franchise system in Malaysia. University of Essex: Unpublished PhD thesis.
Ishak, K.A., Wei, F.C.C., & Romle, A.R. (2016). The roles of trust in franchising relationship: the Malaysian franchisees’ perspectives. Middle-East Journal of Scientific Research, 24(6), 2071-2078.
Iyengar, S.S., & Lepper, M.R. (1999). Rethinking the value of choice: A cultural perspective on intrinsic motivation. Journal of personality and social psychology, 76(3), 349-366.
Johnson, B.R. (1990). Toward a multidimensional model of entrepreneurship: the case of achievement motivation and the entrepreneur. Entrepreneurship Theory and Practice, 14(3), 39-54.
Kaufmann, P.J. (1999). Franchising and the choice of self-employment. Journal of Business Venturing, 14(4), 345-362.
Kaufmann, P.J., & Stanworth, J. (1995). The decision to purchase a franchise: A study of prospective franchisees. Journal of Small Business Management, 33(4), 22-32.
Kidwell, R.E., Nygaard, A. & Silkoset, R. (2007). Antecedents and effects of free riding in the franchisor – franchisee relationship. Journal of Business Venturing, 22(4), 522-544.
Klein, H.J. (1991). Further evidence on the relationship between goal setting and expectancy theories. Organizational Behaviour and Human Decision Processes, 49(2), 230-257.
Knight, R.M. (1984). The independence of the franchise entrepreneur. Journal of Small Business Management, 22(2), 53-61.
Kreitner, R. (2001). Management. (8th ed). Boston: Houghton Mifflin Company.
Kuratko, D.F., Hornsby, J.S., & Naffziger, D.W. (1997). An examination of owner's goals in sustaining entrepreneurship. Journal of small business management, 35(1), 24.
Lee, J. (2006). Family Firm Performance: Further Evidence. Family Business Review, 19(2), 103-114.
Locke, E. A. (1996). Motivation through conscious goal setting. Applied and preventive psychology, 5(2), 117-124.
Moore, C.W., Petty, J.W., Palich, L.E., & Longenecker, J.G. (2010). Managing Small Business: An Entrepreneurial Emphasis. (15th ed.). Singapore: South-Western.
Naylor, J. (2003). Management. Essex: Pearson Education Limited.
Paik, Y., & Choi, D.Y. (2007). Control, autonomy and collaboration in the fast food industry: a comparative study between domestic and international franchising. International Small Business Journal, 25(5), 539-562.
Pearson, A.W., Carr, J.C., & Shaw, J.C. (2008). Toward a theory of familiness: A social capital perspective. Entrepreneurship Theory and Practice, 32(6), 949–969.
Porter, L.W., Bigley, G.A., & Steers, R.M. (2003). Motivation and Work Behaviour. (7th ed.). New York: Mc-Graw Hill.
Price, S. (1996). Behind the veneer of success: Propensities for UK franchisor failure. London: Small Business Research Trust Report.
Robichaud, Y., McGraw, E., & Alain, R. (2001). Toward the development of a measuring instrument for entrepreneurial motivation. Journal of Developmental Entrepreneurship, 6(2), 189.
Rosado-Serrano, A. (2017). Franchising as strategy for internationalization of family firms: An exploratory study. Neumann Business Review, 3(1), 145–165.
Rubin, P.H. (1978). The Theory of the Firm and the Structure of the Franchise Contract. The Journal of Law and Economics, 21(1), 223–233.
Schaper, M., Volery, T., Weber, P., & Lewis, K. (2011). Entrepreneurship and small business. Third Asia Pacific Edition. Queensland: John Wiley & Sons.
Sekaran, U., & Bougie. (2010). Research methods for business: A skill building approach. Haddington: A John Wiley and Sons, Ltd Publication.
Shinnar, R.S. & Young, C.A. (2008). Hispanic Immigrant Entrepreneurs in the Las Vegas Metropolitan Area: Motivations for Entry into and Outcomes of Self-Employment. Journal of Small Business Management, 46(2), 242-262.
Sirmon, D.G., & Hitt, M.A. (2003). Managing resources: linking unique resources, management, and wealth creation in family firms. Entrepreneurship Theory and Practice, 27(4), 339–358.
Tuunanen, M., & Hyrsky, K. (2001). Entrepreneurial paradoxes in business format franchising: An empirical survey of finnish franchisees. International Small Business Journal, 19(4), 47-62.
Wang, C., Walker, E.A., & Redmond, J. (2006). Ownership motivation and strategic planning in small business. Journal of Asia Entrepreneurship and sustainability, 2(4), 50.
Welsh, D.H.B., & Raven, P.V. (2011). Hope among franchise leaders: Why hope has practical relevance to franchising-an exploratory study. Canadian Journal of Administrative Sciences, 28(2), 134-142.
Zellweger, T. (2007). Time horizon, costs of equity capital, and generic investment strategies of firms. Family Business Review, 20(1), 1–15.
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Published
2020-03-19
How to Cite
Abd Aziz, N. A., & Hanafiah, M. H. (2020). Comparison Study Between Family Business Franchisee and Non-Family Business Franchisee. Journal of Contemporary Issues and Thought, 10, 17–26. https://doi.org/10.37134/jcit.vol10.2.2020
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