Franchising: the dilemma between standardisation and flexibility

Both standardisation and flexibility are naturally linked to franchising and the balance between them has become an important research issue. Literature states that cost minimisation, brand image and innovation are the main reasons that push towards standardisation, while flexibility is claimed (for those that advocate for it) in order to achieve a higher adaptation to local markets and enhance franchisees' entrepreneurial attitudes. This research will focus on the computer retail sector to find out how franchise networks in services settle this dilemma. Here, franchisors have decided to focus on economies of scale and strong common corporate image as key goals and thus allow franchisees to be flexible with any other variables that do not affect their main objectives, mainly by adding a complementary product and services portfolio. Results suggest that those resources and capabilities which sustain a competitive advantage are more susceptible to being standardised in franchising, opening an interesting research line through the Resource-Based View.