프랜차이즈를 통한 사업확장속도가 외식기업의 경영성과에 미치는 영향

Purpose – As the franchising strategy is a significant and representative strategy in the restaurant industry, it is critical to understand how franchising action (relative to competitors’ actions) affects firm performance in the hyper-competitive market condition. This study examines the relationship between a firm’s relative franchising speed compared to its competitors’ and financial performance. Design, data, and methodology –Data from restaurant firms publicly traded in the US stock market was collected. In order to control for endogeneity problems, two-stage least squares estimation was conducted. Result – Empirical results show that the relative speed of franchising compared to competitors’ has a positive effect on firm performance. Conclusions – Finding of the study contributes to the franchising and restaurant management literature and provides managerial suggestions on how to compete and succeed from the hyper-competition in the restaurant industry. Specifically, by using relative measures to evaluate the effect of the speed of franchising on firm performance, this study improves the construct validity of the franchising strategy. Also, understanding the dynamics of the relationship between franchising and firm performance, this study helps industry practitioners make strategic decisions.