Original Research

Modelling effect of valuable resources on franchise outlet performance: Dynamic sensing capability as mediator

Jilson Zimuto, Rachel Maritz
South African Journal of Economic and Management Sciences | Vol 22, No 1 | a2706 | DOI: https://doi.org/10.4102/sajems.v22i1.2706 | © 2019 Jilson Zimuto, Rachel Maritz | This work is licensed under CC Attribution 4.0
Submitted: 23 July 2018 | Published: 09 July 2019

About the author(s)

Jilson Zimuto, Department of Business Management, University of Pretoria, Pretoria, South Africa
Rachel Maritz, Department of Business Management, University of Pretoria, Pretoria, South Africa

Abstract

Background: Competitive advantage and superior firm performance depend on resources and dynamic capabilities.

Aim: This study aims to provide insight into the franchising industry where research on the value-dynamic sensing capability-performance relationship as part of the resource-based theory (RBT) seems to be novel. Drawing on the RBT, this study examines how valuable resources and dynamic sensing capability impact franchise outlet performance.

Setting: Based on a cross-sectional design, a sample of 224 South African franchise outlet managers and owner-operators in the fast food and retailing categories was surveyed.

Methods: Hypotheses were tested using a single-level structural equation model for value, dynamic sensing capability and performance.

Results: The results contribute to research on RBT in the context of franchises by providing support for the assumption that firm resources and capabilities improve performance.

Conclusion: The findings are expected to provide a strong base from which franchise managers and owner-operators can strategise for competitive advantage in an emerging economy like South Africa.


Keywords

Resource-based theory; resource-based view; strategy; dynamic sensing capability; performance; franchises.

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Crossref Citations

1. Franchise capabilities and system performance: A configurational perspective
Frédéric Perdreau, Anne-Laure Le Nadant, Nabil Khelil
Industrial Marketing Management  vol: 113  first page: 326  year: 2023  
doi: 10.1016/j.indmarman.2023.07.004