Abstract
This paper deals with the role of organizational forms in the innovation activities of retail and service chains and more specifically within plural form networks where franchised and company-owned units (e.g., stores, hotels, restaurants) coexist. The main purpose of this study is to predict the influence of the organizational form of franchise networks by assessing the effect of plural form organization on the innovation climate of these networks. This paper examines how the degree of organizational mix, measured by the PCO (proportion of company-owned outlets) chosen by network operators, can influence the innovation climate considered as important criterion for innovative organization evaluation. It is hypothesized that the effects of plural form on the innovation climate are mediated by the mutual learning between franchised and company-owned outlets. Results from French networks support the mediation hypothesis and provide evidence that equilibrium in the proportion of franchised and company units is related to a high level of mutual learning, thereby positively influencing the network climate for innovation. Overall, this study contributes to the franchise literature by exploring the role of plural form as governance mechanism for creating a positive innovation climate in the franchise network.
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Appendix Initial Items of the Innovation Climate Scale (14Items)
Appendix Initial Items of the Innovation Climate Scale (14Items)
Items | Questions | Notation scale (1 to 9) |
---|---|---|
Involvement | 1. To what degree are your units available for innovations | Very weakly ⇨ Very strongly |
Autonomy | 2. To what degree is the autonomy of your franchisees in doing their jobs | Low autonomy ⇨ High autonomy |
Openness, sharing | 3. Within your network, people are open to others and share ideas | Strongly disagree ⇨ Strongly agree |
Idea time | 4. Your franchisees take time to think of new solutions and new ideas 5. Your owned units take time to think of new solutions and new ideas | Very rarely ⇨ Very frequently |
Atmosphere | 6. In general, the work atmosphere is relaxed and sympathetic | Strongly disagree ⇨ Strongly agree |
Conflict | 7. To what degree is there emotional tension in your network | A lot of conflict ⇨ Any conflict |
Debate | 8. To what degree is there the lively debate within stores | Rarely ⇨ Frequently |
Idea support | 9. All new ideas are warmly welcome by franchisees 10. Resources are always available to give new idea a try | Strongly disagree ⇨ Strongly agree |
Risk-taking | 11. Your franchisees have tendency to take risk rather than hesitate to accept an innovation | Hesitate a lot ⇨ Usually take risk |
Dynamism | 12. Degree of dynamism of stores | Encoded from percentage |
Financial resources | 13. Your franchisees have financial difficulties to follow the network evolution | A lot of difficulties ⇨ Any difficulty |
Adoption | 14. In your network, innovations are accepted | Very difficultly ⇨ Very easily |
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Minh Ngoc, N., Cliquet, G. (2019). Innovation Climate in Plural Form Franchise Networks: The Mediator Role of Mutual Learning. In: Windsperger, J., Cliquet, G., Hendrikse, G., Srećković, M. (eds) Design and Management of Interfirm Networks. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-030-29245-4_2
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