Entrepreneurial tendencies in franchisees: evidence from India

Abstract

Purpose This study aims to examine franchising from an entrepreneurial perspective. The study investigates the extent to which franchisees exhibit entrepreneurial characteristics and various aspects of franchise development. Design/methodology/approach The questionnaire was distributed to 430 franchisees operating in India and 409 responses were received. Descriptive and inferential statistics, such as correlation, analysis of variance and structural equation modeling were used to analyze the data. Findings The study’s findings indicate that franchisees also exhibit entrepreneurial characteristics and behavior. Additionally, as evidenced by their franchisee selection process, franchisors appear to value entrepreneurial personalities within their franchised outlets. Research limitations/implications By generating sufficient business enterprises, the franchising system of entrepreneurship can be promoted as one of the solutions for developing countries. Additionally, the findings of this study suggest research implications for elucidating the entrepreneurial position of franchisees. Originality/value Considerable ambiguity exists when franchisees’ activities of operating and managing their outlets are considered entrepreneurial firms. The purpose of this study is to examine the role of franchising in the development of entrepreneurship. It provides empirical evidence for the extent of franchisees’ entrepreneurial tendencies and elaborates on key arguments in the franchising and entrepreneurship kinds of literature.