A literature review of franchisee performance: Insights for further research

Abstract

Scholars have conducted franchisee performance research for decades; however, understanding the antecedents and outcomes of franchisee performance is still limited. This study will review and discuss the determinants of franchisee performance in different contexts, using findings from reliable studies from 2013 to March2021, conducted in various countries but predominantly based in developed countries with well-structured franchise systems. This study appears to be the first review of scientific articles from franchisee performance presented in international research. By applying a systematic literature review process on research journals, forty papers are retrieved to meet the research objectives. The findings revealed that four factors affect franchisee performance: franchisor-related factors, franchise-related factors, relationship factors, and external environments. The literature review found that franchisor resources and franchisee entrepreneurial orientation are among the most critical variables to enhance franchisee performance. This study identifies uncertainties and limitations in the existing research. This study suggests a future research roadmap, including potential studies on franchisee performance such as market orientation, the impact of franchisors strategies on franchisee entrepreneurial orientation and market orientation, environmental dynamism in emerging contexts.