Franchise Core Competency and Its Relationship with Environmental Uncertainty, Competitive Advantage, and Financial Performance: An Empirical Assessment of Food-Service Franchise Firms

References

• Abdul-Muhmin, A. G. (2005). Instrumental and interpersonal determinants of relationship satisfaction and commitment in industrial markets. Journal of Business Research, 58(5), 619–628. doi: 10.1016/j.jbusres.2003.08.004
   Web of Science ®Google Scholar
• Agle, B. R., Nagarajan, N. J., Sonnenfeld, J. A., & Srinivasan, D. (2006). Does CEO charisma matter? An empirical analysis of the relationships among organizational performance, environmental uncertainty, and top management team perceptions of CEO charisma. Academy of Management Journal, 49(1), 161–174. doi: 10.5465/AMJ.2006.20785800
   Web of Science ®Google Scholar
• Anderson, E. W., Fornell, C., & Rust, R. T. (1997). Customer satisfaction, productivity, and profitability: Differences between goods and services. Marketing Sciences, 16(2), 129–145. doi: 10.1287/mksc.16.2.129
   Web of Science ®Google Scholar
• Anderson, J. C., & Gerbing, D. W. (1992). Assumptions and comparative strengths of the two-step approach. Sociological Methods and Research, 30(3), 321–333.
   Google Scholar
• Aung, M., & Heeler, R. (2001). Core competencies of service firms: A framework for strategic decisions in international markets. Journal of Marketing Management, 17(7–8), 619–643. doi: 10.1362/026725701323366764
   Google Scholar
• Babin, B. J., & Boles, J. S. (1998). Employee behavior in a service environment: A model and test of potential differences between men and women. Journal of Marketing, 62(2), 77–91. doi: 10.2307/1252162
   Web of Science ®Google Scholar
• Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74–94. doi: 10.1007/BF02723327
   Google Scholar
• Barney, J. (1991). Firm resource and sustained competitive advantage. Journal of Management, 17(1), 99–120. doi: 10.1177/014920639101700108
   Web of Science ®Google Scholar
• Bauer, H. H., Falk, H., & Hammerschmidt, M. (2006). eTransQual: A transaction process based approach for capturing service quality in online shopping. Journal of Business Research, 59(7), 866–875. doi: 10.1016/j.jbusres.2006.01.021
   Web of Science ®Google Scholar
• Bollen, K. A. (1989). Structural equations with latent variables. New York: John Wiley & Sons.
   Google Scholar
• Boyle, E. (1999). A study of the impact of environmental uncertainty on franchise system: The case of petrol retailing in the UK. Journal of Consumer Marketing, 16(2), 181–196. doi: 10.1108/07363769910260533
   Google Scholar
• Challagalla, G. N., & Shervani, T. A. (1996). Dimensions and types of supervisory control: Effects on salesperson performance and satisfaction. Journal of Marketing, 60(1), 89–105. doi: 10.2307/1251890
   Web of Science ®Google Scholar
• Chang, H. J. (2002). Kicking away the ladder: Development strategy in historical perspective. London: Anthem Press.
   Google Scholar
• Chiou, J. S., Hsieh, C. H., & Yang, C. H. (2004). The effect of franchisor's communication, service assistance, and competitive advantage on franchisee's intentions to remain in the franchise systems. Journal of Small Business Management, 42(1), 19–36. doi: 10.1111/j.1540-627X.2004.00095.x
   Web of Science ®Google Scholar
• Chung-Herrera, B. G., Enz, C. A., & Lankau, M. J. (2003). Grooming future hospitality leaders: A competencies model. Cornell Hotel and Restaurant Administration Quarterly, 44(3), 17–25.
   Google Scholar
• Coeurderoy, R., & Durand, R. (2004). Leveraging the advantage of early entry: Proprietary technologies versus cost leadership. Journal of Business Research, 57(6), 583–590. doi: 10.1016/S0148-2963(02)00423-X
   Web of Science ®Google Scholar
• Combs, J., & Ketchen, D. (1999). Explaining interfirm cooperation and performance: Toward a reconciliation of predictions from the resource-based view and organizational economics. Strategic Management Journal, 20(9), 867–888. doi: 10.1002/(SICI)1097-0266(199909)20:9<867::AID-SMJ55>3.0.CO;2-6
   Web of Science ®Google Scholar
• Dess, G. G., & Beard, D. (1984). Dimensions of organizational task environments. Administrative Science Quarterly, 29(1), 52–73. doi: 10.2307/2393080
   Web of Science ®Google Scholar
• Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they?. Strategic Management Journal, 21(10–11), 1105–1121.
   Google Scholar
• Elango, B., & Fried, V. H. (1997). Franchising research: A literature review and synthesis. Journal of Small Business Management, 35(3), 68–81.
   Web of Science ®Google Scholar
• Ettlie, J. E., & Reza, E. M. (1992). Organizational integration and process innovation. Academy of Management Journal, 35(4), 795–827. doi: 10.2307/256316
   Web of Science ®Google Scholar
• Fredericks, E. (2005). Infusing flexibility into business-to-business firms: A contingency theory and resource-based view perspective and practical implications. Industrial Marketing Management, 34(6), 555–565. doi: 10.1016/j.indmarman.2004.09.022
   Web of Science ®Google Scholar
• Ganesan, S. (1994). Determinants of long-term orientation in buyer-seller relationships. Journal of Management, 58(2), 1–19.
   Google Scholar
• Gavin, M. B. (1998). Centering decisions in hierarchical linear models: Implications for research in organizations. Journal of Management, 24(5), 623–641.
   Web of Science ®Google Scholar
• Geary, D. L. (2002). Biology, society and behavior: The development of sex difference in cognition. Westport, CT: Ablex publishing.
   Google Scholar
• Gebauer, H. Gustafsson, A., & Witell, L. (2011). Competitive advantage through service differentiation by manufacturing companies. Journal of Business Research, 64(11), 1270–1280. doi: 10.1016/j.jbusres.2011.01.015
   Web of Science ®Google Scholar
• Grant, R. M. (1991). The resource-based theory of competitive advantage: Implications for strategy formulation. In M. Zack (Ed.), Knowledge and strategy (pp. 3–23). California: California Management Review.
   Google Scholar
• Gupta, A. K., & Wilemon, D. L. (1990). Accelerating the development of technology-based new products. California Management Review, 32(2), 24–44. doi: 10.2307/41166603
   Web of Science ®Google Scholar
• Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis. Englewood Cliffs, NJ: Prentice-Hall.
   Google Scholar
• Han, S-L., & Baek, M-Y. (2008). Effects of environmental uncertainty on transaction and industry characteristics in the franchising markets. Journal of Channel and Retailing (Korean Journal), 13(2), 55–77.
   Google Scholar
• Hoque, Z. (2004). A contingency model of the association between strategy, environmental uncertainty and performance measurement: Impact on organizational performance. International Business Review, 13(4), 485–502. doi: 10.1016/j.ibusrev.2004.04.003
   Google Scholar
• Hosseini, S. M., & Sheikh, N. (2012). An empirical examination of competitive capability's contribution toward firm performance: Moderating role of perceived environmental uncertainty. International Business Research, 5(5), 116–131. doi: 10.5539/ibr.v5n5p116
   Google Scholar
• Hsu, L. T., & Jang, S. (2009). Effects of restaurant franchising: Does an optimal franchise proportion exist? International Journal of Hospitality Management, 28(1), 204–211. doi: 10.1016/j.ijhm.2008.07.002
   Web of Science ®Google Scholar
• Kaleka, A., & Berthon, P. (2006). Learning and locale: The role of information, memory and environment in determining export differentiation advantage. Journal of Business Research, 59(8), 1016–1024. doi: 10.1016/j.jbusres.2006.07.002
   Web of Science ®Google Scholar
• Kandampully, J. (2002). Innovation as the core competency of a service organization: The role of technology, knowledge and network. European Journal of Innovation Management, 5(1), 18–26. doi: 10.1108/14601060210415144
   Google Scholar
• KB Daily Knowledge Vitamin. (2012). Franchise trends and characteristics. Retrieved from https://www.kbfg.com/kbresearch/index.do?alias=retirement&viewFunc=default_details&categoryId=5&subCtgId=&boardId=500&articleId=1001346&menuId=&tSearch=T
   Google Scholar
• Knott, A. (2003). The organizational routines factor market paradox. Strategic Management Journal, 24(October special issue), 929–943. doi: 10.1002/smj.315
   Web of Science ®Google Scholar
• Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: The construct, research propositions, and managerial implications. Journal of Marketing, 54(2), 1–18. doi: 10.2307/1251866
   Web of Science ®Google Scholar
• Lee, Y. K., Jeong, Y. K., & Choi, J. (2014). Service quality, relationship outcomes, and membership types in the hotel industry: A survey in Korea. Asia Pacific Journal of Tourism Research, 19(3), 300–324. doi: 10.1080/10941665.2012.749930
   Web of Science ®Google Scholar
• Lee, Y.-K., Kim, Y., Son, M.-H., & Lee, D.-J. (2011). Do emotions play a mediating role in the relationship between owner leadership styles and manager customer orientation, and performance in service environment? International Journal of Hospitality Management, 30(4), 942–952. doi: 10.1016/j.ijhm.2011.02.002
   Web of Science ®Google Scholar
• Lee, Y.-K., Lim, H-C., & Yoon, N-S. (2005). The impact of instrumental and relational oriented factors on franchisees’ satisfaction with franchisors in food service industry. Journal of Hospitality and Tourism Studies, 7(3), 156–178.
   Google Scholar
• Lenz, R. T. (1980). Environmental, strategy, organization structure and performance: Patterns in one industry. Strategic Management Journal, 1(3), 209–226. doi: 10.1002/smj.4250010303
   Web of Science ®Google Scholar
• Li, J. J., & Zhou, K. Z. (2010). How foreign firms achieve competitive advantage in the Chinese emerging economy: Managerial ties and market orientation. Journal of Business Research, 63(8), 856–862. doi: 10.1016/j.jbusres.2009.06.011
   Web of Science ®Google Scholar
• Liao, S-H., & Hu, T-C. (2007). Knowledge transfer and competitive advantage on environmental uncertainty: An empirical study of the Taiwan semiconductor industry. Technovation, 27(6), 402–411. doi: 10.1016/j.technovation.2007.02.005
   Web of Science ®Google Scholar
• Lonial, S. C., & Raju, P. S. (2001). The impact of environmental uncertainty on the market orientation – performance relationship: A study of the hospital industry. Journal of Economic and Social Research, 3(1), 5–27.
   Google Scholar
• López-Gamero, M. D., Molina-Azorín, J. F., & Claver-Cortés, E. (2011). Environmental uncertainty and environmental management perception: A multiple case study. Journal of Business Research, 64(4), 427–435. doi: 10.1016/j.jbusres.2010.11.009
   Web of Science ®Google Scholar
• Makadok, R. (1999). Interfirm differences in scale economies and the evolution of market shares. Strategic Management Journal, 20(10), 935–952. doi: 10.1002/(SICI)1097-0266(199910)20:10<935::AID-SMJ56>3.0.CO;2-G
   Web of Science ®Google Scholar
• Miller, D., & Lee, J. (2001). The people make the process: Commitment to employees, decision making, and performance. Journal of Management, 27(2), 163–189. doi: 10.1177/014920630102700203
   Web of Science ®Google Scholar
• Milliken, F. (1987). Three types of uncertainty about environment: State, effect, and response uncertainty. Academy of Management Review, 12(1), 133–143.
   Web of Science ®Google Scholar
• Moorman, C., & Rust, R. T. (1999). The role of marketing. Journal of Marketing, 63(1), 180–197. doi: 10.2307/1252111
   Web of Science ®Google Scholar
• Newbert, S. (2008). Value, rareness, competitive advantage, and performance: A conceptual-level empirical investigation of the resource-based view of the firm. Strategic Management Journal, 29(7), 745–768. doi: 10.1002/smj.686
   Web of Science ®Google Scholar
• Ortega, M. J. R. (2010). Competitive strategies and firm performance: Technological capabilities’ moderating roles. Journal of Business Research, 63(12), 1273–1281. doi: 10.1016/j.jbusres.2009.09.007
   Web of Science ®Google Scholar
• Porter, M. (1985). Competitive advantage. New York, NY: Free Press.
   Google Scholar
• Powell, T., & Dent-Micallef, A. (1997). Information technology as competitive advantage: The role of human, business, and technology resources. Strategic Management Journal, 18(5), 375–405. doi: 10.1002/(SICI)1097-0266(199705)18:5<375::AID-SMJ876>3.0.CO;2-7
   Web of Science ®Google Scholar
• Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79–91.
   Google Scholar
• Ragatz, G. L., Handfield, R. B., & Petersen, K. J. (2002). Benefits associated with supplier integration into new product development under conditions of technology uncertainty. Journal of Business Research, 55(5), 389–400. doi: 10.1016/S0148-2963(00)00158-2
   Web of Science ®Google Scholar
• Roh, E. Y., & Yoon, J. (2009). Franchisor's ongoing support and franchisee's satisfaction: A case of ice cream franchising in Korea. International Journal of Contemporary Hospitality Management, 21(1), 85–99. doi: 10.1108/09596110910930205
   Web of Science ®Google Scholar
• Ruiz-Ortega, M. J., & García-Villaverde, P. M. (2008). Capabilities and competitive tactics influences on performance: Implications of the moment of entry. Journal of Business Research, 61(4), 332–345. doi: 10.1016/j.jbusres.2007.07.029
   Web of Science ®Google Scholar
• Schellhase, R., Hardock, P., & Ohlwein, M. (1999). Customer satisfaction in business-to-business marketing: The case of retail organizations and their suppliers. Journal of Business and Industrial Marketing, 14(5), 416–432. doi: 10.1108/08858629910290210
   Google Scholar
• Song, M., Droge, C., Hanvanich, S., & Calantone, R. (2005). Marketing and technology resource complementarity: An analysis of their interaction effect in two environmental contexts. Strategic Management Journal, 26(3), 259–276. doi: 10.1002/smj.450
   Web of Science ®Google Scholar
• Tippins, M. J., & Sohi, R. S. (2003). IT competency and firm performance: Is organizational learning a missing link? Strategic Management Journal, 24(8), 745–761. doi: 10.1002/smj.337
   Web of Science ®Google Scholar
• Wade, M., & Hulland, J. (2004). The resource-based view and information systems research: Review, extension, and suggestions for future research. Journal of MIS Quarterly, 28(1), 107–142.
   Web of Science ®Google Scholar
• Yeoh, P., & Roth, K. (1999). An empirical analysis of sustained advantage in the U.S. pharmaceutical industry: Impact of firm resources and capabilities. Strategic Management Journal, 20(7), 637–653. doi: 10.1002/(SICI)1097-0266(199907)20:7<637::AID-SMJ42>3.0.CO;2-Z
   Web of Science ®Google Scholar
• Zhang, Q., Vonderembse, M. A., & Lim, J. (2002). Value chain flexibility: A dichotomy of competence and capability. International Journal of Operations Research, 40(3), 561–583.
   Google Scholar
• Zhou, K. Z., Brown, J. R., & Dev, C. S. (2009). Market orientation, competitive advantage, and performance: A demand-based perspective. Journal of Business Research, 62(11), 1063–1070. doi: 10.1016/j.jbusres.2008.10.001
   Web of Science ®Google Scholar