Entrepreneurial service vision in a franchised home entertainment environment

Abstract

Entrepreneurship is the creative and innovative process of creating incremental wealth. This wealth is created by individuals who possess an entrepreneurial orientation; assuming the major risks in terms of equity, time and commitment. The process may not be new or unique, but must be infused by the entrepreneur toward securing and allocating the required resources. Franchising is an entrepreneurial option which develops new ventures; whilst strategic service initiatives are entrepreneurial implementations facilitating sustainability, growth and wealth creation. This study identifies entrepreneurial orientation within a defined franchise system; with synergistic links to a strategic service vision. The research objectives are to investigate the current situation of entrepreneurial orientation in a franchise system, together with examining the contribution of a strategic service vision in relation to service quality. The purpose is to identify entrepreneurial behaviour amongst franchisees; franchising as an entrepreneurial option, and to identify relationships between elements of service quality, the service profit chain, relationship marketing and best practice. The outcome is the development of a conceptual matrix, to be initiated within the defined franchise system. Objectives are evaluated via research hypotheses, using empirical statistical techniques. Theoretically, the value the investigation provides is in the understanding that the home entertainment industry is worthy of developing a body of knowledge, to be shared by all industry participants. As a contribution to practice, the entrepreneurial service vision will enhance the sustainability of the industry, notwithstanding the opportunity to share the vision with related industries. This study, the first of its kind in the home entertainment industry and in the specific franchise system, will smooth the way for implementation of entrepreneurial franchise service initiatives in the organisation. On a national level, successful implementation will enhance industry participation and competition; together with entrepreneurial contributions towards the creation of wealth, economic growth and creation of employment in a dynamic, yet turbulent developing economy such as South Africa. Research methodology comprises the survey approach, using electronic media and Surveypro analysis. This is facilitated by descriptive and inferential statistical techniques using SPSS version 11.0 data analysis. Inferential significance tests include the ANOVA Kruskal-Wallis hypothesis test; based on the approximation of the chi-square distribution with k-1 degrees of freedom. Internal-consistency reliability is measured by the Cronbach’s coefficient alpha, measuring overall inter-item correlation between the identified constructs. Exploratory research, in the form of the literature review and previous empirical studies, are used as background and facilitating data. Hypothesis tests highlight the absence of statistically significant entrepreneurial orientation in the franchise system, despite a significant orientation in a multiple-outlet proposition analysis. Franchising is seen as a significant option for creating and developing ventures, and strategic service initiatives (service profit chain, relationship marketing and best practice) are all significantly positively associated with service quality. These constructs constitute the development of an entrepreneurial service vision in a franchise system. Recommendations include the implementation of an entrepreneurial service vision within the defined franchise system. Limitations, however, include limited availability of appropriate data on the home entertainment industry, together with that of entrepreneurial orientation in franchise systems. Recommendations for future research include crossindustry and multi-national studies of similar substance, together with follow-up research regarding the successful implementation of the entrepreneurial service vision matrix.