Robert T. Justis

Resource Scarcity and Agency Theory Predictions Concerning the Continued Use of Franchising in Multi‐outlet Networks

A study of 439 franchisors was conducted to identify factors influencing changes in their propensity to franchise. Consistent with agency theory, franchisors with wide multinational scope were increasing their proportion of franchised outlets whereas franchisors with large outlets were emphasizing firm ownership. As predicted by resource scarcity theory, franchisors were decreasing their proportion franchised as they grew in size, although most of the decrease occurred while firms were relatively small. In contrast to resource scarcity theory, franchisors increased their proportion franchised over time. Key implications are that both agency and resource scarcity theories are needed to explain franchising, but perhaps future research should look beyond resource scarcities toward resource‐based capabilities to better explain franchising decisions.

The Development of Successors From Followers to Leaders in Small Family Firms: An Exploratory Study

The purpose of this exploratory study was to better understand the development of successors in the small family business, including their approach to the leadership of the firm. It examined variables (and their relationships) that help to explain family business successor leadership. A case study approach was followed, using grounded theory analysis of qualitative interviews of the top managers of six family businesses. It provided six propositions for future research—namely, concerning positive parent—child relationships, acquiring knowledge, long-term orientation, cooperation, successor roles, and risk orientation.

Franchising configurations and transitions

Because franchising is a popular and important business alternative, we propose that concerted effort be taken by organization scientists to develop and test theoretical perspectives relevant to this business form. Rather than risk “reinventing the wheel”, researchers should first consider findings from outside the franchising arena to assess their generalizability to franchisors. To this end, three common configurations of franchise organization are described and placed within Mintzberg’s (1979) framework, and the logic linking various organization, strategy, and environment features into an harmonious configuration is presented with respect to each. This configuration view is used to describe franchise organization transitions, and propositions to guide future study of franchise organizations are presented. Thus, both franchising and organization theory are extended by showing how the franchising phenomenon fits into a general perspective on organizations.

Strategic and Contextual Influences on Firm Growth: An Empirical Study of Franchisors

This study examined five‐year growth patterns among a sample of 246 franchise networks in order to identify factors associated with network growth. Two strategic factors and two contextual factors were significantly related to growth. Among those four significant factors, however, two of the relationships were in directions opposite of those hypothesized. The most likely explanations of these findings, taken together, suggest that both strategy and context exert influences on growth, though strategic influences may be greater than contextual ones.

The development and implementation of shared leadership in multi‐generational family firms

Purpose - The purpose of this paper is to better understand the development and implementation of shared leadership in multi-generational family firms. Shared leadership or family top management teams involve multiple family members in the top management and ownership of family firms. Design/methodology/approach - A qualitative case study approach was employed, using in-depth interviews of the top managers of four family businesses. Each case was analyzed separately, and emergent themes found in each case; and then generalizations were made across the four cases in the cross-case analysis. Findings - Eight factors or conditions were examined that affect shared leadership in multi-generational family firms according to the respondents – long-term orientation, close communication and shared understanding, resistance to change, succession planning, failure to release control, reporting relationship confusion, increased decision time, and higher decision quality. The result of this study is the production of eight propositions to build theory concerning shared leadership, which is an under-researched area for family business studies. Research limitations/implications - This paper is rich in qualitative detail, but with all such case study research, its limitations regarding sample size are recognized. Practical implications - This paper views shared leadership as a growing phenomenon that incumbent family business leaders should consider as a viable alternative to primogeniture or the choice of a single successor. Originality/value - The study described in this paper is groundbreaking in that it examines shared leadership or the development and implementation of top management teams in family firms in depth and detail. The paper contributes a balanced view of the implementation of shared leadership in family firms, exploring both the positive and negative aspects.

Franchise management in East Asia

Executive Overview Franchising is the fastest growing method of doing business today. It is becoming a major catalyst for economic growth, employment, and development not only in the United States but also in the international marketplace. Franchising has moved from traditional product (trademark) areas such as automobiles, petroleum, and soft-drink bottlers to the standard industries of fast food, cosmetics, cleaning, convenience stores, computers, and financial services. In almost any area of business, franchising is a reality. We believe that it will surpass every method of doing business by the end of this century. The move toward international franchising is increasing as the U.S. domestic market becomes saturated and opportunities in foreign markets become apparent. We found that the economic growth of the Asian Pacific Rim in the last decade is presenting tremendous opportunities for U.S. franchisors. Several strategies for franchising in East Asia are presented in this article. Major consideration...

A PC-based decision support and expert system for labour market analysis

Abstract Due to the worsening national economy, labour market analysis will receive increasing attention in the near future. This article describes an operating Decision Support (DSS) and Expert System (ES) for labour market analysis and its designing process. The DSS ES is designed following the process of Pictorial Approach to modelling, and it provides researchers with timely and credible analysis of labour market information. This DSS ES uses graphic presentation to delineate employment trends and magnitude, and it takes into consideration the special needs of business research centers by its implementations via spreadsheet application to improve the learning curve. By applying rule indices directly in the spreadsheet, the ES integrates with the DSS fully, and the decision makers are able to retain access to the historical data for ad hoc computations.