Applying Resource Scarcity Theory to Franchising: The Effect of Industry Choice and Age on Franchise Success and Satisfaction

Abstract

This study investigates the impact of industry category and age on franchise business ownership and job satisfaction. The selection of industry choice and age of a franchise business owner could be explained through resource scarcity theory. The decision to become or not become an entrepreneur is based on access or possession of resources. In addition, resource scarcity might explain the type of industry chosen to pursue entrepreneurship. This quantitative study used a comparative research model to gauge whether industry category and age of the franchise business owner impact satisfaction on franchise ownership. Findings reported in this study indicated that, in contrast to previous research on non-franchisee entrepreneurs, age was not correlated to higher satisfaction in owning and operating a franchise. Moreover, significant differences in job satisfaction were identified across industries.