Strategic agility explanations for managing franchising expansion during economic cycles

This paper aims to demonstrate how franchising firms can manage system expansion by weathering the economic effects of a location (i.e. country-level economic cycles) by shifting their resources.

The authors use a comprehensive database of 151 US hybrid franchising organizations, including observations for the years between 2001 and 2008. Data analysis is conducted with count model panel data with a Poisson distribution.

The model reveals a curvilinear U-shaped relationship between location (i.e. economic cycles) and franchising expansion.

This study contributes to competitiveness literature by showing how franchising firms respond to changing local conditions.