Entrepreneurial networking: A blessing or a curse?

Differential effects for low, medium and high performing franchisees

Evelien Croonen, Maryse Brand, R.T.A.J. Leenders

Research output: Contribution to journalArticleScientificpeer-review

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Abstract

Recent studies have called for a better understanding of the link between networking and entrepreneurial performance. We provide such understanding in three ways: by focusing on a specific entrepreneurial context (franchise systems), by developing a multi-faceted theoretical framework and by highlighting a contingency that may affect the networking-performance link. We combine knowledge and learning perspectives with a networking perspective to develop and test a multi-faceted framework on the effects of franchisee networking with peers within a franchise system ('peer networking') on franchisee unit performance. In particular, we argue that the performance benefits that franchisees draw from networking with their peers vary between low, medium and high performing franchisees. We use ordinary least squares (OLS) and Quantile Regression analyses to test our hypotheses with empirical data from a Dutch franchise system. Our results confirm that structural, resource and relational facets of franchisee peer networking affect unit performance, and that they benefit and harm low, medium, and high performing franchisees differently.

Original languageEnglish
Pages (from-to)783–805
JournalSmall Business Economics: An International Journal
Volume50
Issue number4
DOIs
Publication statusPublished - 2018

Fingerprint

Networking
Franchisee
Peers
Franchise system
Empirical data
Theoretical framework
Entrepreneurial performance
Resources
Contingency
Hypothesis test
Ordinary least squares
Quantile regression

Keywords

  • Entrepreneurship
  • franchising
  • Local knowledge
  • Networking
  • Organizational learning
  • Performance
  • Franchisee contingencies
  • quantile regression analysis

Cite this

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title = "Entrepreneurial networking: A blessing or a curse?: Differential effects for low, medium and high performing franchisees",
abstract = "Recent studies have called for a better understanding of the link between networking and entrepreneurial performance. We provide such understanding in three ways: by focusing on a specific entrepreneurial context (franchise systems), by developing a multi-faceted theoretical framework and by highlighting a contingency that may affect the networking-performance link. We combine knowledge and learning perspectives with a networking perspective to develop and test a multi-faceted framework on the effects of franchisee networking with peers within a franchise system ('peer networking') on franchisee unit performance. In particular, we argue that the performance benefits that franchisees draw from networking with their peers vary between low, medium and high performing franchisees. We use ordinary least squares (OLS) and Quantile Regression analyses to test our hypotheses with empirical data from a Dutch franchise system. Our results confirm that structural, resource and relational facets of franchisee peer networking affect unit performance, and that they benefit and harm low, medium, and high performing franchisees differently.",
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language = "English",
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journal = "Small Business Economics: An International Journal",
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Entrepreneurial networking: A blessing or a curse? Differential effects for low, medium and high performing franchisees. / Croonen, Evelien; Brand, Maryse; Leenders, R.T.A.J.

In: Small Business Economics: An International Journal, Vol. 50, No. 4, 2018, p. 783–805.

Research output: Contribution to journalArticleScientificpeer-review

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AU - Croonen, Evelien

AU - Brand, Maryse

AU - Leenders, R.T.A.J.

PY - 2018

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N2 - Recent studies have called for a better understanding of the link between networking and entrepreneurial performance. We provide such understanding in three ways: by focusing on a specific entrepreneurial context (franchise systems), by developing a multi-faceted theoretical framework and by highlighting a contingency that may affect the networking-performance link. We combine knowledge and learning perspectives with a networking perspective to develop and test a multi-faceted framework on the effects of franchisee networking with peers within a franchise system ('peer networking') on franchisee unit performance. In particular, we argue that the performance benefits that franchisees draw from networking with their peers vary between low, medium and high performing franchisees. We use ordinary least squares (OLS) and Quantile Regression analyses to test our hypotheses with empirical data from a Dutch franchise system. Our results confirm that structural, resource and relational facets of franchisee peer networking affect unit performance, and that they benefit and harm low, medium, and high performing franchisees differently.

AB - Recent studies have called for a better understanding of the link between networking and entrepreneurial performance. We provide such understanding in three ways: by focusing on a specific entrepreneurial context (franchise systems), by developing a multi-faceted theoretical framework and by highlighting a contingency that may affect the networking-performance link. We combine knowledge and learning perspectives with a networking perspective to develop and test a multi-faceted framework on the effects of franchisee networking with peers within a franchise system ('peer networking') on franchisee unit performance. In particular, we argue that the performance benefits that franchisees draw from networking with their peers vary between low, medium and high performing franchisees. We use ordinary least squares (OLS) and Quantile Regression analyses to test our hypotheses with empirical data from a Dutch franchise system. Our results confirm that structural, resource and relational facets of franchisee peer networking affect unit performance, and that they benefit and harm low, medium, and high performing franchisees differently.

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KW - franchising

KW - Local knowledge

KW - Networking

KW - Organizational learning

KW - Performance

KW - Franchisee contingencies

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