BRAZILIAN FRANCHISE STARTUPS AND THE COVID-19 CRISIS: ORGANIZATIONAL STRUCTURE AND ADAPTION CAPABILITIES

Authors

DOI:

https://doi.org/10.14210/alcance.v28n3(Set/Dez).p392-407

Keywords:

Franchising, Startups, Crisis Management, Resilience, COVID-19.

Abstract

Purpose – The purpose of this study is to understand how franchise startups have been facing the crisis caused by COVID-19, with greater emphasis on the effects of the franchising decision on the survival of this type of business during the crisis period. Design/methodology/approach – This is a qualitative research, conducted through multiple-case studies on four Brazilian startups that operate through franchised units. Data were collected through online interviews with founders and managers of the franchisee, complemented with information obtained from the companies' websites/social media and articles published in business magazines. The technique of content analysis was used. Findings – We found that franchise startups can operate through conventional franchises or micro-franchises. In both cases, we found no reduction in the agility or flexibility of these businesses. Thus, within a crisis context, resilience allows the franchisor to gain greater advantages from its franchisees, if it opts for the conventional franchise model. Originality – This research addresses the intersection between two business models: startups and franchises. It contributes to the understanding of both areas, as well as the effects of a business model in a crisis context. Limitations/implications – This is a study conducted with a small number of cases within a similar context. The main implications of this research are the formulation of a set of propositions about the startup franchising process and the effects of a crisis for companies that adopt this operating model, and a descriptive diagram of this process.

Author Biographies

MATHEUS DERMONDE, University of Campinas

PhD Candidate and MSc in Business Administration (University of Campinas, 2020). Graduated in Economics (University of Campinas, 2018). His research is oriented to fields of entrepreneurship and organizational economics.

BRUNO BRANDÃO FISCHER, University of Campinas and National Research University Higher School of Economics

PhD in Economics and Management of Innovation (Universidad Complutense de Madrid, 2013). MSc in Agribusiness from the (Federal University of Rio Grande do Sul, Brazil, 2008) and MSc in Economics and Management of Innovation (Universidad Autónoma de Madrid, 2010). Bruno Fischer is Assistant Professor at the School of Applied Sciences, University of Campinas and visiting professor at the National Research University Higher School of Economics, Moscow, Russia. His research is oriented to fields of ecosystems and regional systems of entrepreneurship and innovation.

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Published

2021-08-31

Issue

Vol. 28 No. 3(Set/Dez) (2021)

Section

Article

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