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.
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