Strategic and Contextual Influences on Firm Growth : An Empirical Study of Franchisors
Two types of factors influencing the growth of franchising firms are investigated --strategic factors, which franchisors can manipulate in an effort to influence their growth rates, and contextual factors, which franchisors cannot easily control and must regard as "givens." The hypotheses regarding strategic factors were that franchise start-up costs and initial franchise fee have a negative impact on franchise network growth and that a franchisor's growth orientation has a positive impact on growth. The hypotheses pertaining to contextual factors were that firm age and size are negatively related to network growth and that industry growth and franchisor reputation are positively associated with growth.All hypotheses were assessed in light of the five-year growth patterns of business format franchisors operating in the United States from 1991 to 1998.The initial source of the franchisors studied was Entrepreneur magazine. Although most of the hypotheses were supported by the data, industry growth varied inversely with firm growth, and franchise start-up costs actually had a positive impact on growth rates.These findings suggest that both strategic and contextual factors influence firm growth but that strategy exerts more influence than context. (SAA)
Year of publication: |
2009
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Authors: | Castrogiovanni, Gary J |
Other Persons: | Justis, Robert T (contributor) |
Publisher: |
[2009]: [S.l.] : SSRN |
Subject: | Unternehmenswachstum | Firm growth | Unternehmenserfolg | Firm performance | Strategisches Management | Strategic management |
Description of contents: | Abstract [papers.ssrn.com] |
Saved in:
Extent: | 1 Online-Ressource |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | In: Journal of Small Business Management, Vol. 40, Issue 2, p. 98-108 2002 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments 2002 erstellt Volltext nicht verfügbar |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013153867
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