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The effect of knowledge complexity on the performance of franchise systems in the service industries: an empirical study

Abstract

The literature of knowledge transfer studies complexity as a knowledge characteristic which influences organisations’ performance since it hinders this process. However, complex knowledge is richer and more complete and its influence on performance may be positive. So, the purpose of this study is to analyse the influence of knowledge complexity on the performance of franchise systems in the service industries. With this aim, a linear regression analysis is conducted on a sample of franchisee of different franchise chains of the several service industries operating in Spain. The findings seem to indicate that complexity has a positive impact on the performance of franchise systems.

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Notes

  1. According to the European Code of Franchising Practice which is applicable in Spain, the business concept is the conjunction of three elements: 1) the right to use the brand, the brand name, the signs and symbols and the logo, 2) the products, services and technologies developed by the franchisor, and 3) use of the franchisor’s know-how.

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Correspondence to Beatriz Minguela-Rata.

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Minguela-Rata, B., López-Sánchez, J.I. & Rodríguez-Benavides, M.C. The effect of knowledge complexity on the performance of franchise systems in the service industries: an empirical study. Serv Bus 3, 101 (2009). https://doi.org/10.1007/s11628-008-0049-z

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  • DOI: https://doi.org/10.1007/s11628-008-0049-z

Keywords

  • Knowledge complexity
  • Performance
  • Franchise systems
  • Service industries
  • Franchisee