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The moderating influence of HR operational autonomy on the entrepreneurial orientation–performance link in franchise systems

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Abstract

This study investigates the concept of HR Operational Autonomy, i.e., the freedom a franchisor offers to franchisees throughout the system with regards to their creation of HR practices. It is shown to have a significant positive moderating effect on the EO-performance link among UK franchise systems, explaining over 20 % of the variance in performance outcomes. Implications and future research directions are discussed.

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Notes

  1. This paper focuses on business format franchising, which “occurs when a firm (the franchisor) sells the right to use its trade name, operating systems, and product specifications to another firm (the franchisee)” (Castrogiovanni et al. 2006, p.27-28).

  2. It should be noted that a recent study of thought leaders in entrepreneurship in Entrepreneurship Theory & Practice (Ketchen et al. 2011) revealed that perceptions were split on the question as to whether franchisees are entrepreneurs, although the majority considered franchisors to be entrepreneurs.

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Acknowledgments

Dada gratefully acknowledges the financial support of the Economic and Social Research Council (ESRC) in the U.K., grant number PTA-026-27-1853.

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Authors and Affiliations

  1. School of Business, Eastern Illinois University, 4012 Lumpkin Hall, Charleston, IL, 61920, USA

    Marko Grünhagen

  2. School of Business, Eastern Illinois University, 3625 Lumpkin Hall, Charleston, IL, 61920, USA

    Melody L. Wollan

  3. Management School, Lancaster University, Institute for Entrepreneurship and Enterprise Development, Lancaster, LA1 4YX, UK

    Olufunmilola (Lola) Dada

  4. Hertfordshire Business School, University of Hertfordshire, Hatfield, Hertfordshire, AL10 9AB, UK

    Anna Watson

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  1. Marko Grünhagen
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  3. Olufunmilola (Lola) Dada
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Correspondence to Marko Grünhagen.

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Grünhagen, M., Wollan, M.L., Dada, O. et al. The moderating influence of HR operational autonomy on the entrepreneurial orientation–performance link in franchise systems. Int Entrep Manag J 10, 827–844 (2014). https://doi.org/10.1007/s11365-013-0270-7

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