The impact of franchisor resources, relational capital, and market responsiveness on franchisee performance: From the dynamic capability perspective

Abstract

In today’s rapidly changing business environment, franchisees’ market responsiveness is a way to create a sustainable competitive advantage. Drawing on the resource-based view, dynamic capability perspective and relational view, this study examines the relationships between franchisor resources, relational capital, market responsiveness, and franchisee performance. Based on data collected from 152 franchisees in a convenience store chain in Taiwan, the analysis revealed that market responsiveness, franchisor resources and relational capital are all positively related to franchisee performance. Franchisor resources and relational capital positively affect franchisee performance both directly and indirectly through market responsiveness. Furthermore, relational capital has the strongest effect on franchisee performance.