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Innovation Climate in Plural Form Franchise Networks: The Mediator Role of Mutual Learning

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Design and Management of Interfirm Networks

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

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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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Author information

Authors and Affiliations

  1. CREM UMR 6211CNRS, IGR-IAE Université Rennes 1, Rennes, France

    Nguyen Minh Ngoc

  2. Institute of Management of Rennes (IAE, Université de Rennes 1, Rennes, France

    Gérard Cliquet

Authors
  1. Nguyen Minh Ngoc
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  2. Gérard Cliquet
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Corresponding author

Correspondence to Gérard Cliquet .

Editor information

Editors and Affiliations

  1. University of Vienna, Vienna, Austria

    Josef Windsperger

  2. Institute of Management of Rennes (IAE), Université de Rennes 1, Rennes, France

    Gérard Cliquet

  3. RSM, Erasmus University Rotterdam, Leiderdorp, Zuid-Holland, The Netherlands

    George Hendrikse

  4. Vienna University of Technology, Wien, Austria

    Marijana Srećković

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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