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Revisiting the contingency theory: dissection of entrepreneurial orientation elements in retail franchisee performance

Naidu, Samantha and Singh, Gurmeet and Narayan, Jashwini J. (2023) Revisiting the contingency theory: dissection of entrepreneurial orientation elements in retail franchisee performance. International Journal of Emerging Markets, 18 (9). pp. 2343-2362. ISSN 1746-8809

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Abstract

Purpose – This study aims to analyze how various contingencies within the contingency theory influence the
entrepreneurial orientation (EO) elements and performance of retail franchisees in a South Pacific Island nation.
Design/methodology/approach – This study employs a quantitative approach of data collection from 203
managers in a total of 89 retail franchise outlets. Convenience and snowball sampling techniques were used
with data analysis through SPSS AMOS and covariance-based structural equation modelling (CB-SEM).
Findings – The results confirmed that technology, innovation and promotion; competitive edge and value
co-creation; high return opportunity capitalization; and empowerment and support influenced franchisee
performance, while responsive customer focused leadership and competitor knowledge proved to be
insignificant. The findings supported EO’s influence on both financial and non-financial indicators, with
greater influence on financial indicators. The result revealed that EO accounts for partial impact on franchisee
performance, while the remaining impact could be attributed to organization and environment contingencies.
Originality/value – The study proposes a novel context of EO in franchising, where we dissect key elements
within the EO dimensions. It also adds to the extant literature on how the broader context of environmental and
organizational factors termed as “strategic fit” affects entrepreneurial franchisee performance.

Item Type: Journal Article
Subjects: A General Works > AS Academies and learned societies (General) > AS11-785 By region or country
H Social Sciences > HB Economic Theory
Divisions: School of Business and Management (SBM)
Depositing User: Samantha Naidu
Date Deposited: 13 Jul 2021 00:57
Last Modified: 24 Nov 2023 02:13
URI: https://repository.usp.ac.fj/id/eprint/12845

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