Creating strategic commitment in franchise systems: establishing the link between leadership, organizational structure, and performance

Abstract

In this paper, we address the issue of strategic commitment in franchise systems by exploring the impact of several structural and leadership characteristics. Specifically, we examine the role of leadership style, organizational openness, and organizational structure in the strategic commitment–performance relationship. Our analysis is accomplished through the use of traditional survey research methods with seven franchise systems in multiple industries in the United States. We demonstrate that more committed franchisees execute the corporate strategy and have more open communication, which leads to greater performance. Finally, we formulate a set of normative recommendations for how franchisors and franchisees can better organize, communicate, and execute.

Nous abordons dans cet article la question de l’engagement stratégique dans les systèmes de franchise en étudiant l’impact de plusieurs caractéristiques structurelles et de leadership. Nous examinons plus particulièrement le rôle du style de leadership, de l’ouverture organisationnelle, et de la structure organisationnelle dans la relation stratégique engagement – performance. Notre analyse est réalisée en utilisant des méthodes d’enquête classiques auprès de sept systèmes de franchise dans diverses industries des Etats-Unis. Nous démontrons que les franchisés les plus engagés exécutent la stratégie d’entreprise et ont une communication plus ouverte, ce qui conduit à des performances supérieures. Nous formulons enfin un ensemble de recommandations normatives concernant la manière dont les franchiseurs et les franchisés peuvent assurer une meilleure organisation, communication et exécution.

Keywords:

• franchising
• strategic commitment
• performance
• leadership
• organizational structure

Mots clés:

• le franchisage
• engagement stratégique
• performances
• leadership
• structure organisationnelle

Acknowledgements

The authors wish to thank the reviewers and editors for their insightful comments and help in providing guidance with the preparation of this manuscript.

Additional information

Notes on contributors

David Berkowitz

Dr David Berkowitz is the Dean of Graduate Studies and professor of marketing at the University of Alabama in Huntsville. His research interests include innovation and entrepreneurship.

Brent M. Wren

Dr Brent M. Wren is the associate provost and associate professor of marketing at the University of Alabama in Huntsville. His research interests include franchising, market orientation, and entrepreneurship.