Family versus Non-Family Firm Franchisors: Behavioral and Performance Differences

Journal of Management Studies, 2020

56 Pages Posted: 6 Mar 2020

See all articles by Francesco Chirico

Francesco Chirico

Jonkoping University - Jonkoping International Business School (JIBS); Macquarie University, Macquarie Business School

DIANNE H.B. WELSH

affiliation not provided to SSRN

R. Duane Ireland

Texas A&M University - Department of Management

Philipp Sieger

affiliation not provided to SSRN

Date Written: February 4, 2020

Abstract

Drawing from resource-based theory, we argue that family firm franchisors behave and perform differently compared to non-family firm franchisors. Our theorizing suggests that compared to a non-family firm franchisor, a family firm franchisor cultivates stronger relationships with franchisees and provides them with more training. Yet, we predict that a family firm franchisor achieves lower performance than a non-family firm franchisor. We argue, however, that this performance relationship reverses itself when family firm franchisors are older and larger. We test our hypotheses with a longitudinal dataset including a matched-pair sample of private U.S. family and non-family firm franchisors.

Suggested Citation

Chirico, Francesco and Chirico, Francesco and WELSH, DIANNE H.B. and Ireland, R. Duane and Sieger, Philipp, Family versus Non-Family Firm Franchisors: Behavioral and Performance Differences (February 4, 2020). Journal of Management Studies, 2020, Available at SSRN: https://ssrn.com/abstract=3532121

Francesco Chirico (Contact Author)

Jonkoping University - Jonkoping International Business School (JIBS) ( email )

Jönköping, 55111
Sweden

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

DIANNE H.B. WELSH

affiliation not provided to SSRN

R. Duane Ireland

Texas A&M University - Department of Management ( email )

430 Wehner
College Station, TX 77843-4218
United States

Philipp Sieger

affiliation not provided to SSRN

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