Intrapreneurial Behaviour Within the Franchising Context

Abstract

Previous conceptual exploratory and empirical investigations into organisational choice lend support to the contention that, in comparison to corporate ownership, franchising offers a vehicle for Intrapreneurship (corporate entrepreneurship), particularly within the areas of new knowledge acquisition, experimentation and local market adaptation. While previous firm-level analyses have cited performance advantages associated with innovative behaviour in plural organisational forms, little attention has been given to the antecedents of corporate entrepreneurship in franchise networks. In particular, no comprehensive analysis of intrapreneurial activity in franchisee-owned subsystems has been conducted. This research aims to build theory through the presentation of a set of general propositions explaining intrapreneurial behaviour in multiple unit franchise systems as a function of autonomy, communication, control, and organisational support and representation. Overall, the qualitative findings drawn from a sample of McDonalds restaurant franchisees, confirmed the validity of the general propositions in preparation for empirical testing in the near future.