Zimuto, JilsonMaritz, Rachel2020-03-122020-03-122019-07-09Zimuto, J. & Maritz, R., 2019, ‘Modelling effect of valuable resources on franchise outlet performance: Dynamic sensing capability as mediator’, South African Journal of Economic and Management Sciences 22(1), a2706. https://DOI.org/10.4102/sajems.v22i1.2706.1015-8812 (print)2222-3436 (online)10.4102/sajems.v22i1.2706http://hdl.handle.net/2263/73718The initial research formed part of a PhD study conducted by Dr Jilson Zimuto under the supervision of Dr Rachel Maritz. (http://hdl.handle.net/2263/67963)BACKGROUND : Competitive advantage and superior firm performance depend on resources and dynamic capabilities. AIM : This study aims to provide insight into the franchising industry where research on the value-dynamic sensing capability-performance relationship as part of the resource-based theory (RBT) seems to be novel. Drawing on the RBT, this study examines how valuable resources and dynamic sensing capability impact franchise outlet performance. SETTING : Based on a cross-sectional design, a sample of 224 South African franchise outlet managers and owner-operators in the fast food and retailing categories was surveyed. METHODS : Hypotheses were tested using a single-level structural equation model for value, dynamic sensing capability and performance. RESULTS : The results contribute to research on RBT in the context of franchises by providing support for the assumption that firm resources and capabilities improve performance. CONCLUSION : The findings are expected to provide a strong base from which franchise managers and owner-operators can strategise for competitive advantage in an emerging economy like South Africa.en© 2019. The Authors. Licensee: AOSIS. This work is licensed under the Creative Commons Attribution License.Resource-based viewStrategyDynamic sensing capabilityPerformanceFranchisesResource-based theory (RBT)Article