Knowledge creation and business format franchising

This article aims to contribute to the study of knowledge creation and management in business format franchising by focusing on the question of how franchisors can convert the tacit knowledge held by franchisees (such as insights, ideas, and hunches) to explicit knowledge.

The article is conceptual and is largely anchored on the assumptions of the knowledge management, theories of organisational learning and organisational knowledge creation theory.

The findings emphasise that the conversion of franchisees' tacit knowledge to new explicit knowledge is one of the key knowledge management practices required for successful business format franchising. Proposes that the concept of ba has much to offer in considering knowledge management in a business format franchise system.

With regard to future research avenues, conceptual and empirical studies are both needed to obtain a clearer understanding of the dynamic process of knowledge creation under business format franchising.

The article sensitises franchisors to think how knowledge is created under business format franchising, and in particular how the tacit knowledge that franchisees provide can be converted into the form of explicit knowledge. Underlines that franchisors can never control and direct dynamic process of knowledge creation among franchisees, but a franchisor can provide certain conditions that lead franchisees and other members of franchise system to create and disseminate knowledge.

The article proposes that both tacit and explicit knowledge under business format franchising are created in formal or informal groups encompassing bas that may span both horizontally and vertically throughout the business format franchise system.