Investigating the effecting factors on franchisors' ambidexterity

Document Type : Research Paper

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One of the essential challenges franchisors encounter is achieving a balance between the opposing activities of standardization (products and services) and adaptation (local preferences). This is called ambidexterity in the literature of organizational studies. While the literature on franchising provides little insight into ambidexterity, this research investigates factors affecting ambidexterity and performance. This research is practical in goal and descriptive-correlational in terms of data collection. The data was collected using a survey questionnaire, filled with 63 franchisors, and analyzed using the Smartpls2 software. The results indicate that plural model, network portfolio management capability, growth orientation and market diversity positively affect franchisors' ambidexterity. Contrary to our expectations, contract flexibility does not influence ambidexterity in franchisors. The findings also show that ambidexterity holds a positive impact on the firm's performance.

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