Leveraging the resource-based view of the firm to explain performance differences in ownership types in the quick service restaurant industry

Abstract

This study explores performance differences between corporate owned and operated and franchised outlets in the Quick Service Restaurant industry. While studies have proven that there is a performance difference favouring franchisees, why the performance advantage occurs has not been explained. this study aims to explain why that performance phenomenon exists. Using the Resource-based View as a theoretical lens, the operational differences were assessed between both ownership types within the same franchise ecosystem where both operate the same operating model and franchisees enjoy a performance advantage. Using qualitative data collected from twenty interviews, we identify six themes: franchisee motivation, franchisee empowerment and flexibility, manager focus, opportunity realization, corporate rigidity and tactical restaurant management that together act as a basket of resources that provide franchisees with a performance advantage. This study discusses the implications for franchise owners, corporate restaurant management and the industry in general including possible contributions to theory.