THE EFFECT OF ORGANIZATIONAL CONTEXT ON ENTREPRENEURIAL STRATEGIES INFRANCHISING

Franchising systems play a viral role in the creation of new jobs and economic development. Although the role of the franchisor as entrepren eur is generally assumed, there has been limited research on the condu ct of entrepreneurial activities in the franchising system as a whole. In particular, researchers and practitioners need to better understan d the influences of organizational context on entrepreneurial activiti es system-wide. The research reported in this article examines the inf luences of the organizational concert of the franchisor on the entrepr eneurial strategies of franchisors, their innovation efforts, and fran chisor support of entrepreneurial activities by franchisees. Specifica lly, this study examines how the organizational context variables of s ize, age of the franchise, its growth rate (both absolute and relative ), and time in franchising affect franchisee perceptions of entreprene urial strategies of their parent franchisor, their innovation efforts, and franchisor managerial support for entrepreneurial activity and in novation by the franchisee. Franchisee perceptions of their parent fra nchisors' entrepreneurial strategies were assessed with respect to fou r dimensions identified in previous research as central to an entrepre neurial orientation: low concern for stability, willingness to take ri sks, aggressiveness in competition and proactiveness (in seeking new o pportunities). Innovation by franchisors was measured with respect to introduction of new products and techniques.