The entrepreneurial role of organisational members in the internationalisation of a franchise system

Abstract

PurposeTo discuss the entrepreneurial role and importance of organisational members in implementing franchising decisions internationally.Design/methodology/approachA single embedded case study of an international hotel firm was the focus of the enquiry. Interviews, observations and document analysis were used as the data collection techniques.FindingsFindings suggest that Development Directors, as the organisational members in host country markets, display many characteristics of entrepreneurial salespeople in the process of selling the franchise system. However, they face organisational obstacles which mean that they cannot fully exploit their entrepreneurial effort. The paper concludes by suggesting that it is Development Directors, as opposed to senior decision makers, who possess an international orientation and are therefore crucial to the internationalisation process of the firm. In addition, there is an indication that there is a relationship between entrepreneurial efforts within sales and the performance of a firm.Research limitations/implicationsThe hotel industry has been chosen as the focus of the study, and the comparability with other industries is therefore questionable. Although the research findings have not indicated any substantial differences in terms of the international management of the hotel firms and other types of organisations, the findings of this research cannot be generalised.Practical implicationsThis paper both illuminates the challenges franchise organisations face internationally and highlights the options that companies may consider as part of their growth strategies.Originality/valueThis paper illustrates the role and importance of organisational entrepreneurs in the international expansion process and sheds new light on the implementation of franchising decisions internationally. It identifies an important factor in the operationalisation of international franchising – the need for entrepreneurial sales people in the franchise‐selling procedure.