Abstract
Using the resource‐based view framework, we investigate the link between multiunit franchising (MUF) and performance on four key challenges in franchise chain management: growth, uniformity, local responsiveness, and system‐wide adaptation. Our findings support the assertion that system growth is positively related to MUF rate within a system, in particular in relation to geographic expansion. Interestingly, while uniformity does not seem to be related to MUF rate, we find marginal support for an inverted u‐shaped relationship between system‐wide adaptation and MUF rate. Furthermore, the data suggest that local responsiveness and MUF rate are related in a u‐shaped function.
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