Abstract
The purpose of this paper is to extend insight about processes and routines needed for franchise replication and makes an important contribution to understanding ways through which dynamic capabilities are created. Based on a grounds-up study, this paper utilizes a storyline approach (Miles & Huberman, 1994) to present interview data obtained from interviews with elite informants (IEIs) of the host company and its archival data. Evolution of capabilities, both substantive and dynamic, are captured in the findings section. Of the seventeen interviews, seven subjects were location heads and ten corporate executives. Interviews with corporate executives included questions pertaining to their functional specialty as well. Finally, implications for future research and practice are discussed.
Highlights
The success of a retailer in building a chain, is primarily due to replication since it allows firms to grow geographically and become a chain of even tens of thousands (Bradach, 1998), such as McDonald‟s, Starbucks, Walmart, Kroger, CVS, etc
The purpose of this paper is to extend insight about processes and routines needed for franchise replication and makes an important contribution to understanding ways through which dynamic capabilities are created
Based on a grounds-up study, this paper utilizes a storyline approach (Miles & Huberman, 1994) to present interview data obtained from interviews with elite informants (IEIs) of the host company and its archival data
Summary
The success of a retailer in building a chain, is primarily due to replication since it allows firms to grow geographically and become a chain of even tens of thousands (Bradach, 1998), such as McDonald‟s, Starbucks, Walmart, Kroger, CVS, etc. Replication in chains results when firms decide to exploit a retail business model, which proved successful in its initial settings, by copying it in many other locations (Szulanski & Jensen, 2008). Franchising literature has used multiple theories such as resource scarcity (Castrogiovanni, Combs, & Justis, 2006), resource augmentation (Garg, 2005a), agency (Garg & Rasheed, 2003; Lafontaine & Slade, 1997; Shane 1996; Michael, 1999), transaction cost economics (Mathewson & Winter,1985; Rubin, 1978), intra-channel relationships (Baucus, Baucus, & Human, 1996; Grunhagen & Dorsch, 2003), etc., to study those problems (Combs, Michael, & Castrogiovanni, 2004; Combs, Ketchen, Shook, & Short, 2011)
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