| Author: | Hoffman, R.C. Preble, J.F. |
| Title: | Convert to compete: Competitive advantage through conversion franchising |
| Journal: | Journal of Small Business Management
2003 : APR, VOL. 41:2, p. 187-204 |
| Index terms: | Competitive advantage Franchising Entrepreneurship Small business USA |
| Freeterms: | SME |
| Language: | eng |
| Abstract: | This paper offers an in-depth treatment of conversion franchising, where new franchisees are added to a franchised system by recruiting existing independent entrepreneurs or competitors' franchisees. The first part of the paper examines conversion franchising as a source of competitive advantage. This discussion leads to the articulation of four propositions. The second part of the paper looks at the empirical results of our study of 72 North American franchisors. 72 percent of these firms use conversion franchising in their domestic markets, and 26 percent use conversions in international locales. The propositions relating to a franchisor's decision to use conversions based on increased levels of experience, economic resources, and to a lesser extent skills/knowledge, all were supported. These results lend support to the literature indicating that resources and skills serve as sources of competitive advantage. |
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