Exploratory investigation of organization power, and its impact on strategy implementation and firm performance: a study of the hospitality franchise systems

Franchising is the primary force in the growth and survival of the hospitality industry. Franchise systems contain legally independent, economically interdependent, and politically affective franchise organizations. Strategic management in hospitality franchise systems with emphasis on implementation methods is investigated in the present study. Impact of sources of power (economic and noneconomic), held by the franchisors, on franchisees’ strategy implementation process and eventual performance are also included in this study. Single unit Quick Service Restaurant (OSR) franchisees from six different concepts have participated in this study. A total of ten research hypotheses are empirically tested using various statistical procedures. The current study demonstrates that implementation plays an important role in determining performance (satisfaction) of an organization. It also shows that sources of power impact organizational performance (satisfaction) whether measured as revenues or profits. The QSR franchisees’ satisfaction with franchise arrangements is affected by the nature power sources. The results indicate that some implementation models are more effective than others, and different performance objectives demand different implementation models. The "match" between the outcome objectives and the implementation model is essential to achieve the desired performance. Different sources of power (coercive, legitimate, referent, and information) have varying effects on organizational performance, financial or nonfinancial. Originality of the instrument is one of the major methodological contributions of the study. Positive and statistically significant results achieved in the current study offer empirical validity to the instrument. Another major contribution is the confirmation of earlier studies by several authors on relation between power and satisfaction, and power and performance using the hospitality industry setting. The results also indicate that for long term survival, the OSR franchisees must consider different implementation models and their congruence with the nature of power present in the franchise system.

Name thesis:degree_name

Ph. D.

Level thesis:degree_level

doctoral

Discipline thesis:degree_discipline

Hospitality and Tourism Management

Department dc:contributor.department

Hospitality and Tourism Management

Grantor dc:publisher

Virginia Tech

Year dc:date.issued

1994

Author dc:creator

• Parsa, Haragopal "HG"

Chair dc:contributor.committeechair

• Khan, Mahmood A.

Committee members dc:contributor.committeemember

• Brown, James R.
• Murrmann, Suzanne
• Umbreit, W. Terry
• Tse, Eliza C.

Statement dc:rights

• In Copyright

Licence dc:rights.uri

• http://rightsstatements.org/vocab/InC/1.0/

Language dc:language.iso

en

Dc Identifier Other

etd-06062008-164617

OAI identifier oai:identifier

oai:vtechworks.lib.vt.edu:10919/38281