Franchising as a small business growth strategy: A resource-based view of organizational development

J. Stanworth, D. Purdy, C. Stanworth, Anna Watson, S. Healeas

Research output: Contribution to journalArticlepeer-review

33 Citations (Scopus)


Not only are most franchisees themselves small businesses, but so are many franchisors, particularly in the formative years of their franchise businesses. High turbulence and attrition rates in the formative years of franchise businesses result in an industry profile whereby, at any one time, around half of all franchise systems are less than five years old with less than 10 outlets. The question arises: how do successful franchise organizations plan their human capital development in order to accomplish successful growth? An adjunct to this question is the role of franchisees who, while not totally independent in the sense of the conventional small business person, certainly do not see themselves as conventional employees either, and have certain expectations of participation in the process of which they are an integral part. This exploratory article uses case study material from a number of 'exemplar' franchise companies in the development of a resource-based view of organizational development. The article should hold considerable interest, not only for academics interested in franchising, but also for those examining fields such as small business strategic management, innovation and intangible asset growth
Original languageEnglish
Pages (from-to)539-559
Number of pages21
JournalInternational Small Business Journal
Issue number6
Publication statusPublished - 1 Dec 2004


  • Franchising
  • Small business growth
  • resource based view


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