Determinants, transactional alignment, and performance outcomes of franchise contract length

2018 ◽  
Vol 47 (7) ◽  
pp. 714-732 ◽  
Author(s):  
Nina Gorovaia
Keyword(s):  
Performance Outcomes ◽  
Brand Name ◽  
Two Stage ◽  
Comparative Performance ◽  
Knowledge Assets ◽  
Content Type ◽  
Specific Investments ◽  
Strategic Assets ◽  
Contract Length ◽  
And Performance

Purpose The purpose of this paper is to explore the determinants, transactional alignment and performance outcomes of franchise contract length using transaction costs theory (TCT) and resource-based theory (RBT). Design/methodology/approach The author hypothesizes that franchisors choose contract length according to TCT and RBT arguments. TCT explains the safeguarding function of contracts: the franchisors will offer longer contracts when franchisees’ specific investments are high and environmental uncertainty is low. RBT highlights the knowledge leverage function of contracts: the franchisors will offer longer contracts when the brand name and intangible knowledge assets are high. Franchise companies that design contract length aligned with transactional attributes will perform better. The author tests the misalignment hypothesis and comparative performance of franchise contracts by estimating two-stage least squares regression and Heckman two-stage procedure that control for endogeneity and self-selection. Findings Empirical data from the German franchise sector support the hypotheses. In addition to the safeguarding function, franchise contracts have an important knowledge leverage function. Longer contracts perform better due to the development of relational strategic assets and stronger commitment. Research limitations/implications Franchisors must offer longer contracts when specific investments of franchisees, brand name, intangible knowledge assets are high, and environmental uncertainty is low. Franchisors should invest in the development of relational strategic assets and offer longer contracts for the benefit of superior performance. Originality/value The study addresses the significant question of transactional alignment and comparative performance of franchise contracts. It empirically confirms the importance of RBT in explaining contractual choices and performance.

Corporate governance practices and firm performance: a configurational analysis across corporate life cycles

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hala M. Amin ◽  
Ehab K.A. Mohamed ◽  
Mostaq M. Hussain
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Analytical Approach ◽  
Research Study ◽  
Performance Outcomes ◽  
Life Cycles ◽  
Related Activity ◽  
Content Type ◽  
And Performance ◽  
Country Specific

Purpose This study aims to explore corporate governance (CG) practices that can lead to firms’ better performance in different organizational life cycles. The authors propose a configurational approach to explore how a set of CG practices combine in bundles to achieve high performance outcomes for firms across their corporate life cycles. Design/methodology/approach Fuzzy-set qualitative comparative analysis was used to analyze a sample of data of 21 countries and 9 industries. Data referred to the period of 9 years extending from the year 2005 to the year 2013. Findings This study reveals that there are multiple CG practices that exist through firms that can achieve high firm performance. Moreover, CG practices combine in different ways for firms in their growth, maturity and declining stages. Research limitations/implications This study demonstrates the value of using a configurational analytical approach to explore both the firm and country-specific CG practices (together) that engage firms to achieve the desired level of performance across the corporate life cycles. Practical implications The current study draws attention to the policymakers’ need to assess the current level of regulatory and competitive development of their countries and form policy accordingly. The approach used in the current research study not only offers the linkages between CG and performance to managers as incentives to comply with regulation but also to view CG-related activity as a strategic move. Social implications The approach used in the current research study not only offers the linkages between CG and performance to managers as incentives to comply with regulation but also to view CG-related activity as a strategic move. Originality/value This study broadening the focus of CG studies to include a rigorous explanation of the global CG phenomena and to provide effective solutions for the practitioners. Contribution to Impact This study demonstrates the value of using a configurational analytical approach to explore both the firm and country-specific CG practices (together) that engage firms to achieve the desired level of performance across the corporate life cycles.

An empirical investigation of buyer–supplier relationship typologies and their behavioral and performance outcomes

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jin Li ◽  
Linlin Chai ◽  
Chanchai Tangpong ◽  
Michelle Hong ◽  
Rodney D. Traub
Keyword(s):  
Performance Measures ◽  
Online Survey ◽  
Performance Outcomes ◽  
Superior Performance ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Behavioral Dynamics ◽  
And Performance ◽  
Supplier Relationship

Purpose This study aims to examine empirically the existence of four classical and four emerging buyer–supplier relationship (BSR) types and how they differ in terms of behavioral dynamics and performance measures. Design/methodology/approach This study uses an online survey to collect data from 371 purchasing managers in the USA. Findings A cluster analysis statistically supports the existence of five of these eight BSR types, including strategic/bilateral partnership, market/discrete, supplier-led collaboration, captive supplier/buyer dominant and captive buyer/supplier dominant BSRs. Further, ANOVA tests show that these five BSRs differ in terms of behavioral outcomes and performance measures. Research limitations/implications This study is based on a cross-sectional survey so it cannot examine how these BSR types may evolve over time, and it is not suitable to examine some rare types of BSRs. In addition, this study does not consider contextual factors that may moderate the influence of BSR types on the behavioral dynamics and performance measures. Practical implications Managers should consider the potential to be able to develop and enhance a strategic/bilateral relationship with their supply chain partners, which in at least some circumstances can lead to superior performance results. Similar observations can be made with respect to supplier-led and, to a lesser degree, buyer-led collaboration. Originality/value Most existing research of the BSR types is largely a product of theoretical classifications, and there is also a lack of research of their performance implications. This study fills these gaps in the literature.

Shared services: configurations, dynamics and performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Philipp Richter
Keyword(s):  
Performance Outcomes ◽  
Shared Services ◽  
Senior Executives ◽  
Content Type ◽  
Configurational Approach ◽  
Operational Capabilities ◽  
Shared Service ◽  
And Performance ◽  
Corporate Support ◽  
Practical Implications

PurposeThe purpose of this paper is to explore the configurations of shared service center (SSC) characteristics, their performance implications and the dynamics of SSC configurations during their implementation.Design/methodology/approachThis study uses the capability-based view and configurational approach to suggest a model that explains performance outcomes of shared service configurations. Survey data are analyzed with a cluster analysis to examine shared service configurations in distinct stages of implementation. Moreover, a lifecycle framework of shared service configurations is conceptualized.FindingsThis study considers shared service configurations as operational capabilities to run corporate support activities. The purpose is to examine the configurations of those capabilities, their performance implications and their dynamics during the shared service implementation.Practical implicationsThe findings help senior executives to effectively implement and transform shared services when deciding to renew corporates' support activities.Originality/valueThis study is one of the first that conceptually and empirically explores shared service configurations, performance and configurational dynamics.

Contract complexity and trust in construction project subcontracting

2020 ◽  
Vol 27 (9) ◽  
pp. 2477-2500 ◽  
Author(s):  
Shui Bo Zhang ◽  
Junying Chen ◽  
Yafan Fu
Keyword(s):  
Regression Model ◽  
Construction Industry ◽  
Performance Outcomes ◽  
Black Box ◽  
Mediating Effect ◽  
Content Type ◽  
Specific Investment ◽  
Specific Investments ◽  
Bilateral Transaction ◽  
The Relationship

PurposeThe purpose of this paper is to unpack the “black box” of the relationship between contract and inter-organizational trust, both theoretically and empirically. Two mediators, namely perceived safeguard and restriction, are identified to build up two seemingly contrary possible paths between contract and trust from current literature. Both paths are tested in the context of Chinese construction industry due to our access to sample.Design/methodology/approachA survey of 295 contractor-subcontractor relationships from Chinese construction industry was conducted. A three-step multiple regression model was employed to test the mediating effect of perceived safeguard and restriction. Then, a hierarchical regression model was used to test the possible moderating effect of bilateral transaction-specific investment.FindingsThe empirical results support the mediating effect of perceived safeguard between contract and trust in the construction subcontracting industry. Bilateral transaction-specific investments enhance the positive effect of contract on safeguard perception.Originality/valueTheoretically, this study contributes to governance literature by opening up the “black box” of the relationship between contract and trust. It provides a better understanding of how and when contract complexity impacts trust, instead of simply focusing on whether contract and trust act as complements or substitutes. Practically, this study provides guidelines for construction firms to decide the degree of contract complexity under various degrees of bilateral transaction-specific investments to enhance the other party’s trust, so as to improve performance outcomes.

Job insecurity and performance in public and private sectors: a moderated mediation model

2020 ◽  
Vol 7 (2) ◽  
pp. 237-253
Author(s):  
Antonio Chirumbolo ◽  
Antonino Callea ◽  
Flavio Urbini
Keyword(s):  
Job Insecurity ◽  
Moderated Mediation ◽  
Performance Outcomes ◽  
Economic Sector ◽  
Mediation Model ◽  
Content Type ◽  
Moderated Mediation Model ◽  
And Performance ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this study was to extend our knowledge of the relationship between quantitative and qualitative job insecurity and performance. On the basis of stress theories, we hypothesised that qualitative job insecurity (QLJI) would mediate the negative effect of quantitative job insecurity (QTJI) on two different indicators of performance: task performance (TP) and counterproductive work behaviours (CPWBs). In addition, the authors hypothesised that the effect of QTJI on QLJI would be moderated by the economic sector (public vs private) in which employees worked. Therefore, the authors empirically tested a moderated mediation model via PROCESS.Design/methodology/approachParticipants were 431 employees from various Italian organisations. Data were collected using a self-report questionnaire measuring QTJI, QLJI, TP and CPWBs.FindingsThe results indicated that economic sector moderated the relationship between quantitative and QLJI. Both quantitative and QLJI were related to performance outcomes. Furthermore, QLJI mediated the effect of QTJI on TP and CPWB. However, this mediation was particularly apparent among employees in the private sector, supporting our hypothesised moderated mediation model.Practical implicationsThe results suggest that managers of private and public organisations need to apply different policies to reduce the impact of job insecurity on CPWBs and increase the TP of their employees.Originality/valueThis study attempted to examine the job insecurity–performance relationship in more depth. For the first time, the effects of both job insecurity dimensions on performance were simultaneously investigated, with economic sector as a moderator and QLJI as a mediator.

The relationship between learning transfer climates and innovation in public and private organizations in Korea

2014 ◽  
Vol 35 (7) ◽  
pp. 956-972 ◽  
Author(s):  
Hee Jun Choi ◽  
Ji-Hye Park
Keyword(s):  
Organizational Innovation ◽  
Learning Transfer ◽  
Public Organizations ◽  
Performance Outcomes ◽  
Performance Expectations ◽  
Public And Private ◽  
Content Type ◽  
Organizational Type ◽  
Private Organizations ◽  
And Performance

Purpose – The purpose of this paper is to examine the results of an empirical exploration of the relationship between learning transfer climates and organizational innovation. Additionally, factors associated with learning transfer climate that could account for innovation in Korean public and private organizations have been explored. Design/methodology/approach – This study relies on quantitative data obtained from two survey questionnaires. The sample consists of 390 employees working for seven private and five public organizations; further, each employee has completed at least one training program within a one-year period. Findings – Results of the study demonstrate that private, rather than public organizations, have significantly higher mean scores for all five learning transfer climate variables and for perceived organizational innovation. The results of multiple regression analyses reveal that openness to change and performance coaching have common and significant impacts on perceived innovation in both private and public organizations. However, the other three variables (i.e., transfer effort-performance expectations, performance-outcomes expectations, and performance self-efficacy) have varied effects on perceived innovation depending on organizational type. Specifically, transfer effort-performance expectations has a relatively meaningful impact on perceived innovation in public organizations. Performance-outcomes expectations and performance self-efficacy have relatively meaningful effects on perceived innovation in private organizations. Research limitations/implications – The sample for this study consists of employees solely from Korean organizations. Therefore, further studies encompassing a greater sampling variety are required to determine the generalizability of these results. In addition, this study is limited to an investigation of the possible differences between public and private organizations with respect to their learning transfer climates and innovation. In studies to follow, researchers can further investigate these relationships in segmented organizations. Originality/value – The results of this study will assist human resource practitioners to promote innovation effectively and efficiently based on organizational type.

scholarly journals TQM and business success

2016 ◽  
Vol 33 (3) ◽  
pp. 361-379 ◽  
Author(s):  
Francisco J. Carmona-Márquez ◽  
Antonio G. Leal-Millán ◽  
Adolfo E. Vázquez-Sánchez ◽  
Antonio L. Leal-Rodríguez ◽  
Stephen Eldridge
Keyword(s):  
Continuous Improvement ◽  
Business Performance ◽  
Performance Outcomes ◽  
Equation Modeling ◽  
Business Success ◽  
Content Type ◽  
Business Results ◽  
And Performance ◽  
Practical Implications

Purpose – Prior studies by Salaheldin (2009) and Talib et al. (2011) have assessed the relationships between TQM critical success factors (CSF) and business results. The purpose of this paper is to build upon this research by considering the relationships between these CSFs and their sequencing during the implementation of TQM. Furthermore, the influence exerted by the maturity of TQM implementation on the link between instrumental drivers and performance is explored. Design/methodology/approach – The TQM drivers are clustered by means of three constructs: strategic enablers, tactical drivers and instrumental drivers and a model employed in which the strategic and tactical factors are treated as antecedents of the instrumental drivers. The direct effect of each cluster on business results and the indirect relationship of strategic and tactical factors via the mediating role of the instrumental drivers are assessed. These assessments use the partial least squares (PLS) approach which is a variance-based structural equation modeling technique using a sample of 113 Spanish organizations with experience of implementing a TQM program. Findings – The findings confirm the existing relationships among the CSFs and business performance identified by studies Salaheldin (2009) and Talib et al. (2011). However, the results reveal that instrumental drivers possess the highest variance explanation power over business performance outcomes and it is possible to identify a CSF implementation sequence that generates the greatest impact on business performance. Furthermore, the study was inconclusive with regard to the influence exerted by the number of years of TQM implementation on the link between the instrumental drivers and performance. Research limitations/implications – The first is related to organizational bias. It seems likely that those firms which are not satisfied with their TQM system performance would be less likely to be motivated to contribute to the development of this study. Therefore, the authors have included in the sample a higher proportion of “good” systems than is the case in the population at large. Second, although the authors provide evidence of causality, causality itself has not been proven. Third, this research relies mainly on perceptions and the authors only used a single method to elicit these perceptions. Finally, this research was carried out in a specific geographical setting (Spanish companies) and the authors must be cautious about generalizing these results in other contexts. Practical implications – This study offers a substantial number of practical implications. First firms’ managers should emphasize that continuous improvement, benchmarking and zero-defects mentality is a never-ending process. Especially, they should understand that reliable product/service design is critical to exceed the customers’ expectations, leading to improved business success. The results of this study should also lead managers to seeing a “return on investment” in their efforts to implement a TQM program by first, paying more attention on how to implement the instrumental factors, and second, avoiding the belief that the passage of time and experience-based learning will bring business performance enhancement and success on their own. Social implications – Although, the literature agrees that strategic factors are valuable assets and have a crucial role in the deployment of TQM systems, the study empirically validates this assertion. However, at the same time it shows that this impact on performance is stronger and much more significant by reconfiguring instrumental factors. This implies that strategic and tactical factors do have an effect on business success, but they do so indirectly, by reconfiguring and reinforcing instrumental factors that better fit the stakeholders’ needs and expectations. Originality/value – The results suggest the need to consider whether all the CSFs are equally relevant on the basis of their contribution to business success. For example, strategic enablers are generally considered to be of primary importance with tactical and instrumental drivers assuming a secondary position. The study challenges this view and highlights the role of instrumental drivers over strategic and tactical factors with the clear implication that managers should focus strongly on daily implementation tasks such as benchmarking, zero-defects mentality and continuous improvement processes in order to achieve good business performance outcomes.

The organizational slack and performance relationship: a configurational approach

2015 ◽  
Vol 53 (10) ◽  
pp. 2339-2355 ◽  
Author(s):  
Dan Marlin ◽  
Scott W Geiger
Keyword(s):  
Design Methodology ◽  
Positive Relationship ◽  
Performance Outcomes ◽  
Organizational Slack ◽  
Content Type ◽  
Configurational Approach ◽  
Managerial Attention ◽  
And Performance ◽  
Practical Implications ◽  
Organizational Literature

Purpose – The purpose of this paper is to contribute to the organizational literature and improve the understanding of the slack and performance link by: examining the slack and performance relationship using a configurational approach and by considering equifinality and its possible effects on this relationship. Design/methodology/approach – Using cluster analysis, ANCOVA, and means comparisons this study identifies different configurations of slack and their associated performance implications. Findings – The results show that configurations with higher levels of slack outperform those with lower levels of slack suggesting a positive relationship between slack and firm performance. The findings also demonstrate that alternative configurations of slack can result in similar levels of performance suggesting the existence of equifinality in this relationship. Research limitations/implications – This study contributes to prior research by moving beyond traditional linear and contingency views of slack and considering a configurational approach. An important contribution of this study is that while level of slack may be important it appears that how the various types of slack are bundled also serves as an important factor in firm outcomes and should be examined by future researchers. Practical implications – The results indicate that managerial attention should be paid to not only identifying appropriate levels and types of slack for the organization but also to appropriate ways to bundle theses resources. Originality/value – This study provides an important contribution to the literature by determining if certain slack bundles result in higher levels of performance and if there are multiple ways of bundling slack resources that result in similar performance outcomes.

International franchising and performance: a resource-based perspective

2018 ◽  
Vol 46 (8) ◽  
pp. 744-763 ◽  
Author(s):  
Nabil Ghantous ◽  
Shobha S. Das
Keyword(s):  
Relationship Satisfaction ◽  
Structural Equation ◽  
Contract Design ◽  
Equation Modeling ◽  
Strategic Choices ◽  
Comparative Performance ◽  
Content Type ◽  
International Performance ◽  
And Performance ◽  
The Impact

Purpose The purpose of this paper is to investigate international franchise performance. It focuses on how franchisors conceive their international performance, the drivers of their international performance, and how age-at-entry moderates the impact of their resources and capabilities (R&C) on international performance. Design/methodology/approach Using the lens of the resource-based view of the firm, the authors build on franchisor voice from a qualitative study (n=28) to propose a research model of international franchise performance. A second, quantitative study (n=89) tests the model with PLS structural equation modeling. Findings Franchisors view international performance in terms of relationship satisfaction with foreign franchisees and performance in comparison to competitors. The empirical results show that relationship satisfaction significantly improves comparative performance. Both franchisor-owned resources, the brand and knowhow, enhance only comparative performance, while all three international relational capabilities, related to knowhow transfer, monitoring, and contract design, and both reconfigurational capabilities, related to organizational responsiveness and innovativeness, improve relationship satisfaction. Only contract design and innovativeness increase comparative performance. Finally, late internationalization reinforces franchisor ability to leverage relational and reconfigurational capabilities for better relationship satisfaction. Originality/value This paper contributes to research on international franchise performance. It uses a mixed-method design and offers the first quantitative investigation of the drivers of international franchise performance. This research also integrates the role of franchisor R&C with franchisor strategic choices, through the moderating effect of internationalization timing.

Simulated business effectiveness: learning and performance outcomes

2020 ◽  
Vol 62 (9) ◽  
pp. 1015-1036
Author(s):  
Anna Stamatelatos ◽  
Robert Brooks
Keyword(s):  
Learning Style ◽  
Business Performance ◽  
Cognitive Mapping ◽  
Positive Association ◽  
Individual Performance ◽  
Performance Outcomes ◽  
Individual Learning ◽  
Content Type ◽  
And Performance ◽  
Learning And Performance

PurposeThis study investigates simulated business learning and performance effectiveness during a simulation task. The learning and performance outcomes of two groups of postgraduate student participants are investigated namely: (a) participants who do not struggle with the task and (b) participants who do struggle with completing the task.Design/methodology/approachAn experiment was conducted using a simulated business, which was manipulated into two initial commencement formats: positive initial format (PIF) and negative initial format (NIF). Individual performance on the task was measured via achievement of performance targets whilst individual learning was measured via causal cognitive maps.FindingsParticipants using PIF did not struggle with completing the task and achieved higher performance outcomes compared to participants using NIF, who struggled with completing the task. In addition, the positive association between learning and performance was significantly reduced for participants using NIF who struggled with completing the taskResearch limitations/implicationsThis study’s findings are tentative as the sample size is small and several moderator/mediator variables, which may influence the findings (i.e. student learning style/instructor style/cognitive factors), are outside the scope of the study and thus not included.Practical implicationsCausal cognitive mapping results and students’ self-assessment of learning during simulated business debriefing, may further help instructors/students identify the differences in individual learning outcomes between those who have and have not struggled with increasing simulated business performance.Originality/valueBy using an experiment and causal cognitive mapping to measure individual learning, this study contributes further empirical evidence to the literature.

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