Comparing decision-making strategies in accounting franchises and independent brands: a causation and effectuation approach

Abstract

This study examines the decision-making performance of entrepreneurs choosing between accounting franchises and independent brands through the lens of Causation and Effectuation theories. The research question addressed is: How does decision-making performance manifest when starting an accounting franchise versus an independent brand in light of Causation and Effectuation theories? This quantitative study employed a survey approach. The research population consisted of accounting enterprises—both franchises and independent brands—registered with the Brazilian Federal Accounting Council (CFC, 2023). The subjects were 718 entrepreneurs, including 312 accounting franchisees and 406 independent brand owners. The study utilized a questionnaire adapted from Chandler et al. (2011), Brettel et al. (2012), Appelhoff et al. (2015), and Neely, Gregory & Plattys (1995), with data analyzed using Structural Equation Modeling via the Partial Least Squares (PLS) approach. The findings provide crucial and practical insights for entrepreneurs who participated in the study and those facing similar decisions between launching their own brand or investing in a franchise. Both franchise and independent brand entrepreneurs can evaluate the best way to proceed by applying both the Causation and Effectuation theories.