Subsistence entrepreneurship the interplay of collaborative innovation, sustainability and social goals

Contributions to Management Science Vanessa Ratten Paul Jones Vitor Braga Carla Susana Marques Editors Subsistence Entrepreneurship The Interplay of Collaborative Innovation, Sustainability and Social Goals Contributions to Management Science More information about this series at http://www.springer.com/series/1505 Vanessa Ratten • Paul Jones • Vitor Braga • Carla Susana Marques Editors Subsistence Entrepreneurship The Interplay of Collaborative Innovation, Sustainability and Social Goals Editors Vanessa Ratten Department of Entrepreneurship, Innovation and Marketing La Trobe University Melbourne, VIC, Australia Vitor Braga Polytechnic Institute of Porto Porto, Portugal Paul Jones ICTE Coventry University Coventry, UK Carla Susana Marques University of Trás-os-Montes and Alto Douro Vila Real, Portugal ISSN 1431-1941 ISSN 2197-716X (electronic) Contributions to Management Science ISBN 978-3-030-11541-8 ISBN 978-3-030-11542-5 (eBook) https://doi.org/10.1007/978-3-030-11542-5 Library of Congress Control Number: 2019936558 © Springer Nature Switzerland AG 2019 This work is subject to copyright All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations This Springer imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Contents Subsistence Entrepreneurship: The Role of Collaborative Innovation, Sustainability and Social Goals Vanessa Ratten, Paul Jones, Vitor Braga, and Carla Susana Marques Firm Founders’ Passivity as a Source of Serendipitous Opportunity Discovery Antti Kauppinen Commonomics: Rhetoric and Reality of the African Growth Tragedy Jerry Kolo, Nnamdi O Madichie, and Chris H Mbah Entrepreneurship in the Solidarity Economy: A Valuation of Models Based on the Quadruple Helix and Civil Society José Manuel Saiz-Álvarez and Jesús Manuel Palma-Ruiz Evaluating the Business Model of a Work Integration Social Enterprise in Cantabria Elisa Baraibar-Diez, María D Odriozola, Ignacio Llorente, and José Luis Fernández Sánchez 17 33 51 Encouraging Indigenous Self-Employment in Franchising Scott Weaven, Lorelle Frazer, Mark Brimble, Kerry Bodle, Maurice Roussety, and Park Thaichon 69 Shadow Economy Index for Moldova and Romania Talis J Putnins, Arnis Sauka, and Adriana Ana Maria Davidescu 89 Survivability and Sustainability of Traditional Industry in the Twenty-First Century: A Case of Indonesian Traditional Furniture SME in Jepara 131 Danu Patria, Petrus A Usmanij, and Vanessa Ratten The Minimum Wage Fuels Romania’s Shadow Economy? 155 Adriana Ana Maria Davidescu and Friedrich Schneider v vi Contents Gamifying Innovation and Innovating Through Gamification 183 Agnessa Shpakova, Viktor Dörfler, and Jill MacBryde Work Hard, Play Hard: Work-Life Balance in Small Business 195 Robyn Young, Lorelle Frazer, Scott Weaven, Maurice Roussety, and Park Thaichon Stay Ahead of a Game or Stay Still: The Impact of Learning and Development on Business Performance 215 Janette Timms, Lorelle Frazer, Scott Weaven, and Park Thaichon List of Contributors Elisa Baraibar-Diez University of Cantabria, Santander, Cantabria, Spain Kerry Bodle Department of Accounting, Finance and Economics, Griffith University, Southport, QLD, Australia Vitor Braga Porto Polytechnic, Porto, Portugal Mark Brimble Department of Accounting Finance and Economics, Griffith University, Nathan, QLD, Australia Adriana Ana Maria Davidescu Department of Statistics and Econometrics, Bucharest University of Economic Studies, Bucharest, Romania Department of Labour Market Policies, National Scientific Research Institute for Labour and Social Protection, Bucharest, Romania Viktor Dörfler University of Strathclyde, Glasgow, Scotland, UK Lorelle Frazer School of Business, University of the Sunshine Coast, Sippy Downs, QLD, Australia Paul Jones Swansea University, Swansea, UK Antti Kauppinen College of Business, School of Management, RMIT University, Melbourne, VIC, Australia Jerry Kolo College of Architecture, Arts and Design, American University of Sharjah, Sharjah, United Arab Emirates Ignacio Llorente University of Cantabria, Santander, Cantabria, Spain Nnamdi O Madichie Centre for Research and Enterprise, Bloomsbury Institute London, London, UK Jill MacBryde University of Strathclyde, Glasgow, Scotland, UK vii viii List of Contributors Carla Susana Marques Universidade de Trás-os-Montes e Alto Douro, Vila Real, Portugal Chris H Mbah School of Business and Entrepreneurship, American University of Nigeria, Yola, Adamawa State, Nigeria María D Odriozola University of Cantabria, Santander, Cantabria, Spain Jesús Manuel Palma-Ruiz Universidad Autónoma de Chihuahua, Chihuahua, Mexico Danu Patria Universitas Teknologi Surabaya, Surabaya, Indonesia Talis J Putnins Stockholm School of Economics in Riga (Latvia), Riga, Latvia Vanessa Ratten Department of Entrepreneurship, Innovation and Marketing, La Trobe University, Melbourne, VIC, Australia Maurice Roussety Department of Marketing, Griffith University, Nathan, QLD, Australia José Luis Fernández Sánchez University of Cantabria, Santander, Cantabria, Spain José Manuel Saiz-Álvarez EGADE Business School-Tecnologico de Monterrey, Zapopan, Jalisco, Mexico Arnis Sauka Centre for Sustainable Business, Stockholm School of Economics in Riga, Riga, Latvia Friedrich Schneider Johannes Kepler University of Linz, Linz, Austria Agnessa Shpakova Heriot-Watt University, Edinburgh, Scotland, UK Park Thaichon Department of Marketing, Griffith University, Southport, QLD, Australia Janette Timms School of Business, University of the Sunshine Coast, Sippy Downs, QLD, Australia Petrus A Usmanij Department of Entrepreneurship, Innovation and Marketing, La Trobe University, Melbourne, VIC, Australia Scott Weaven Department of Marketing, Griffith University, Southport, QLD, Australia Robyn Young Department of Marketing, Griffith University, Nathan, QLD, Australia Subsistence Entrepreneurship: The Role of Collaborative Innovation, Sustainability and Social Goals Vanessa Ratten, Paul Jones, Vitor Braga, and Carla Susana Marques Abstract The goal of this chapter is to discuss the role of subsistence entrepreneurship in the society Increasingly both business and government are focusing at low-income consumers and the role they play in the innovation process This has meant greater emphasis has been given to understand the role of these consumers who are called ‘subsistence consumers’ because they live at the bottom of the pyramid and exist on low income and wages This chapter discusses subsistence consumers in terms of how they can be innovative and also the importance that collaboration plays in achieving social goals Managerial and social implications are discussed in terms of how business can harness the collective power of subsistence entrepreneurs in order to create a better global community Introduction The world population is growing and there are a number of people who live in poverty This has led to a need to produce products and services at an affordable rate The goal of this book is to understand the way low-priced products and services are being produced by subsistence entrepreneurs through a variety of different contexts This book offers an analysis of the practices of subsistence entrepreneurs through V Ratten (*) Department of Entrepreneurship, Innovation and Marketing, La Trobe University, Melbourne, VIC, Australia e-mail: v.ratten@latrobe.edu.au P Jones Swansea University, Swansea, UK e-mail: w.p.jones@swansea.ac.uk V Braga Porto Polytechnic, Porto, Portugal e-mail: vbraga@estgf.ipp.pt C S Marques Universidade de Trás-os-Montes e Alto Douro, Vila Real, Portugal e-mail: smarques@utad.pt © Springer Nature Switzerland AG 2019 V Ratten et al (eds.), Subsistence Entrepreneurship, Contributions to Management Science, https://doi.org/10.1007/978-3-030-11542-5_1 Stay Ahead of a Game or Stay Still: The Impact of Learning and 223 learned well and applied it well and continued to learn on the job is very valuable It means they can offer better solutions to their customers and it also improves productivity One of the suppliers interviewed reflected on their performance during the time that franchise Group was at its peak and the current situation: ‘Back then we were getting twice as much revenue from the group as we currently—it has definitely dwindled over the years and this has impacted on our performance’ 3.1.4 Franchise Employee Welfare Several employees were interviewed to discuss their experience with learning and development initiatives One later became a franchisee and the other a manager of a company-owned outlet A third later moved on to enjoy a successful career outside of franchising They all enjoyed participating and appreciated the investment in developing them professionally as the following comment illustrates: I started out my career with this company, it was my first job after university and it started with a two-week training program followed by coaching and ongoing short courses at regular intervals over the next two years I earned a business qualification I owe my successful ongoing career to these foundations Several of the (franchisor) participants espoused the belief that employee welfare is improved by the awarding of formal qualifications for training as this enhances their career paths: Employee career paths benefit from accredited training where they are rewarded with a formal qualification A sales training course with no qualification attached has no validity We employ millenniums and this is what they look for Many franchisee participants expressed the view that ongoing professional development for their employees is needed, and if not provided, employee welfare suffers as a result The following sentiment is indicative of many: We used to develop employees and they benefited from the professional development they received, they stayed with us longer and developed the skills to step up and take on management responsibilities Now we have nothing and it’s much harder to attract and keep good employees 3.1.5 Franchising Sector Welfare There was a consensus in the belief that when franchise groups are successful, the franchising sector as a whole benefits in terms of business growth, employee retention and fewer disputes, and franchise brands are in the position to share knowledge and learn from each other, as the following (franchisor) comment illustrates: The franchising sector benefits from successful franchise systems We all benefit from learning from each other Many skills are transferable, so employees can move and take 224 J Timms et al their skills with them Hard to measure but transferable skills apply across industries and sectors On the other hand, whilst there was consensus on this point in this research study, there is insufficient evidence from four case studies to project the effect on the franchising sector welfare as a whole, and further research on this topic is needed 3.2 Dominant Themes We then turned the line of questioning to explore factors that influence franchisee participation and engagement with learning and development initiatives The research findings have been grouped into five thematic categories (i.e strategic holistic approach, knowledge management strategy, field support strategy, communication strategy and franchisee management strategy), which provide greater insights into the examination of participation and engagement and together form a synergistic model for an effective knowledge exchange framework, which is recognised as a critical component of competitive advantage (Hunt and Morgan 1997: Vargo and Lusch 2008: Weaven et al 2014) 3.2.1 Theme 1: Strategic Holistic Approach to Learning and Development During the course of the interviews, the various elements of the learning and development strategy discussed were explored in detail, with the aim of identifying the critical elements for successful implementation The interviews revealed a number of common elements which are illustrated in Table Table Elements of learning and development strategy Elements Flexible, time efficient, cost-effective, blended delivery modes Measurable learning outcomes Relevant, useful and high-quality content Enterprise specific not necessarily accredited Skilled training specialists OTJ coaching and reinforcement Investment in learning and development resources Knowledge, skills and practical assessment Continuous ongoing professional development Gamification Source: authors’ own table No of participants 52 References to topic 208 46 39 37 37 39 31 27 27 169 78 71 70 75 120 71 69 15 Stay Ahead of a Game or Stay Still: The Impact of Learning and 225 A key issue seems to be that the success of training interventions was not measured well, and therefore, it was difficult to identify what was working and what was not, resulting in short-term thinking and lack of continuity The following statement is from a participant (franchisor) who has worked in one of the franchise groups for over 20 years: Consistency was an issue, we set very short-term goals for trying things and if there was no immediate result it was deemed as not working and then changed The average time less than 12 months Too quick across a large and diverse network—it should be a to year investment and we should expect these results at the end not immediately We never measured training well and this was a big issue In ‘Stage One’ research, we proposed that the identification of measurable and assessable learning outcomes to facilitate the transfer of learning to on-the-job behaviour would have a positive impact on the achievement of enhanced channel outcomes There was the consensus with the franchisor participants that generally this was not done well The following (franchisor) comment is indicative of many: This is a failing of our group; our measures weren’t as good as they could have been Too much emphasis on bums on seats and eyeballs on screens for online, this is ludicrous We should have placed more emphasis on behavioural change and results There were a few examples of where this had been done to some extent as the following (franchisor) comment illustrates: We ran a sales campaign with training to support it We were able to see changes in behaviour as people made sales calls, we were also able to track improved results in getting appointments and months down the track we measured the sales revenue generated from the sales campaign Several of the franchisees interviewed have been in the system for many years and reported high participation levels when they believed that the training interventions were relevant, useful and of high-quality lending support to the proposition that ensuring that training content is relevant and useful to franchisees will have a positive effect on participation and engagement with learning and development strategies, as this (franchisee) comment illustrates: When the franchisor got it right, in the early days, we participated, the training was really good and relevant to my business and our staff were also sent to training to improve their knowledge and skills In contrast, if franchisees not perceive training interventions to be relevant, useful and of high-quality, participation levels drop as the following (franchisee) comment illustrates: The training quality deteriorated when we lost our training manager who had a lot of industry experience and knew how to bring it to life in the training materials and engaging delivery The trainers that stayed were good at delivery but could not create new relevant content, so relevance to my business deteriorated over time In the end it was useless, so we didn’t participate All of the franchisee participants agreed that it is very difficult to find the time to attend training interventions or send employees along Their businesses run very 226 J Timms et al lean, so flexible training interventions need to be provided in bite-sized chunks and outside of business hours as this (franchisee) example demonstrates: As the majority of our franchise outlets now run with or fewer staff members, out of hours training for group sessions is the only opportunity to get a good turn out There was agreement that learning and development strategy must be blended encompassing online, webinars and face to face, with strategies to ensure behaviour change is achieved on the job such as follow-up behavioural assessment and coaching Online training is flexible and relatively inexpensive to deliver but if it has not done well it will fail It must be interactive so that participants need to things, and incorporate tone of voice as well as non-verbal components and mini video clips The following (supplier) opinion was expressed by many: eLearning must be interactive, or people don’t learn We get better feedback on eLearning that is fast paced, requires engagement (listening, watching and doing) and includes short ‘how to’ videos—this is well received Short sharp impact training has instant learning and benefit Franchisee is asking for more of this as they see the benefits There was agreement that an essential element of learning and development strategy is the employment of skilled training professionals; operational experts are needed to ensure the training content is enterprise specific so that it is relevant and useful and also contribute tacit knowledge from the field and on-the-job coaching and behavioural assessment However, there must also be high-level learning and development expertise in the mix as this (supplier) comment illustrates: Training is a highly skilled job and skilled facilitation results in more learning Too many franchise groups use their operational experts to train but they just feed information into people’s heads training is not engaging When the line of questioning turned to whether training should be accredited and associated with nationally recognised qualifications, there were mixed feelings as this (franchisor) comment demonstrates: No doubt in my mind that if you have accredited training it’s a real incentive to participate, you get better participation, better interaction and better results and more support from the franchisees of their people Those not espousing accredited training were objecting to the way that accredited training is used by RTOs to obtain government funding stating that too much emphasis and resource allocation are placed on the funding rather than on ensuring the training is high quality and enterprise specific The following (franchisor) sentiment was expressed by many: My experience with RTOs offering accredited training that attracts government funding is that it was very poor The hurdles we had to jump to release the funding at every stage became the main issue they didn’t have our interests at heart It was all about the funding not the quality of training On a final note, franchise Group has recently implemented a new eLearning platform to support the introduction of new products and services into the Australian market Their learning and development strategy incorporated the introduction of Stay Ahead of a Game or Stay Still: The Impact of Learning and 227 gamification in order to encourage intrinsic motivation and employee engagement Results to date indicate that this is proving to be a cost-effective, efficient way of improving participation in the training interventions necessary to achieve their desired channel outcomes They have achieved a 100% participation rate in the training programme coupled with 100% completion by participants of training introduced to date Furthermore, they have reported observed on-the-job behaviour change resulting from participation of the training interventions indicating widespread engagement with the learning outcomes and a 63% increase in revenue derived from the new products and services introduced The topic of gamification did not arise in ‘Stage One’ of this research and has only been introduced in the last months in one of the franchise groups studied, so it is too soon to draw conclusions; however, early indications suggest that gamification in relation to participation and engagement would benefit from further research Furthermore, gamification could be useful at different stages of the knowledge management process 3.2.2 Theme 2: Knowledge Management Strategy The knowledge management initiatives appear to have focused on capturing tacit knowledge and then sharing through the implementation of an information management system Over the years, they evolved from hard copy operating system procedures in binders that were placed in every outlet to a fully searchable information management system All four franchise groups have invested in their information management system, but there was agreement that the biggest challenge is keeping the content accurate and up to date There was also consensus that inaccurate outdated content leads to lack of credibility resulting in reluctance to use the system as the following (franchisor) comment illustrates: We need to invest more in the content on our knowledge management system This is our operations manual, but it is never current and is not integrated with our training materials We need a fully populated knowledge management system that everyone uses and it fully up to date—a best practice ‘how to’ model for success in our business system This is what business format franchising is all about and we don’t this well enough All four franchise groups reported the loss of valuable tacit knowledge over the years, as the following (franchisor) comment illustrates: There is a huge amount of IP with experience and knowledge, but no strategy to capture or document it This was recognised, but no one knew how to capture it Over the last few years an inordinate amount of tacit knowledge has left the business, the cost in $ terms is huge, we will make the same mistakes all over again, this is frustrating One of the franchise groups had introduced a number of strategies to capture and share knowledge made; there have been various attempts at knowledge capture by some of the groups as illustrated by the following (franchisor) comment: We studied best practice and also our own history, things we did in the past that worked well We put together leadership groups of successful franchisees, our marketing council and speak easy forums were used to gather tacit knowledge from franchisees It was all about 228 J Timms et al growing the grapevine of franchising Also, video fireside chats, that’s how they share Our marketing manager would be the moderator and help get the right stuff out of people People like seeing panels of their peers at conferences too It was also recognised by some franchisor participants that it is beneficial for knowledge management to extend beyond their own franchise group and to include knowledge sharing with other franchise groups and outside of their own industry sector: We formed an alliance with other franchise groups so we could learn from each other, interaction gives learnings from different groups We even interviewed each other’s Franchisees Learning came from this and also some validation that we are on the right track One of the franchise groups introduced an initiative where the franchisor management team worked in a franchise outlet twice a year, facilitating the opportunity for two-way knowledge sharing as the following (franchisor) reflected: All managers had to work in a franchise outlet twice a year, they were allocated to outlets, not allowed just to pick their favourites This was a great two-way learning process A common complaint from the franchisees interviewed was that there is an overall lack of understanding and failure to tap into the knowledge and experience of franchisees and this in some instances is leading to poor operating system decisions The following (franchisee) comment is indicative of the views of many: The franchisor is naïve, only people that have no idea of what is going on in an outlet could say something like that My business would fall in a heap if I did what they say In summary, there was wide recognition from franchisor and franchisee participants that knowledge management is an area of weakness that needs to be addressed as part of the organisation’s strategy and that failure to address this issue could be detrimental to the group as the following comment illustrates: We don’t have the mechanisms in place to capture the wealth of knowledge and experience that exists in our group and so much has been lost over the years So many wheels have been re-invented and so much waste of resources We are missing out on the opportunity to become a learning organisation and only when we can achieve this, we will reach the level of greatness we desire Our MIS just doesn’t cut it we need an integrated knowledge management system that provides the ‘Why’, ‘What’, ‘When’, and ‘How’ for every aspect of running a franchise business As the various aspects of knowledge management were discussed, the interviews revealed a number of common elements which are illustrated in Table 3.2.3 Theme 3: Role of Field Support The proposition that high-calibre field support staff will positively influence the successful implementation of learning and development strategy and subsequent enhanced channel outcomes was explored, and there was agreement that high-calibre field support is an essential element of success in franchising However, it was Stay Ahead of a Game or Stay Still: The Impact of Learning and 229 Table Elements of knowledge management strategy Elements Comprehensive and current information Systems and processes for capturing and sharing tacit knowledge Fully integrated with training content Dynamic fully searchable operations manual Knowledge sharing with other franchise groups Franchisor working in franchise outlets Knowledge sharing outside of franchising No of participants 51 50 References to topic 161 128 45 44 39 15 118 89 52 43 17 Source: authors’ own table widely recognised by the franchisor participants that field support is a challenging area to get right The following (franchisor) sentiment sums up the opinion of many: It’s a critical but difficult role, done right there is the opportunity for enormous difference but it’s not always been done right and our calibre of field support managers has dropped We don’t pay them well and don’t train them well Several participants expressed the opinion that too much is expected of the field support team and the resourcing levels are not aligned with the workload expectations as the following comment illustrates: There is too much onus on the field team and its beyond their capability—all roads seem to lead back to field team and there is only so much they can There is also too much emphasis on delivering information The more they are used to deliver messages the less there is focus on the Franchisee’s business All franchisee and the majority of franchisor participants described the desired learning and development aspect of the field support role as on-the-job coaching and reinforcement of training, identification of training needs, encouraging participation and on-the-job practical assessment as the following comment describes: It must be a strategy including ongoing on the job coaching, assessment of learning etc The training needs to be part of a coaching program and get behaviour change on the job We need more practical small business coaches who know what it is like to walk in a franchisee’s shoes Participants were asked to rate the calibre of the field support team on a scale of to 10 for each period Table reports the average score for each period Franchise Group reported that there is not enough collaboration between field support and learning and development and effectively these two areas work in individual silos, resulting in duplication and inefficiencies as the following franchisor comment illustrates: Part of the solution to that challenge is to integrate what we in the training role with what field managers locally It needs to be a joint effort, historically, we haven’t done that as well as we could, we haven’t implemented plans where the whole company buys into it so we keep reinventing the wheel 230 J Timms et al Table Calibre of field support rating Period 1—2002 to 2007 Period 2—2008 to 2012 Period 3—2013 to 2017 Franchise Group 8.5 Franchise Group Franchise Group Franchise Group Formed in 2007 5 7 2.5 8 Source: authors’ own table The other three franchise groups seem to work more collaboratively and described strategies designed to gain greater leverage from training interventions by integrating them with on-the-job support, coaching and assessment as the following(franchisor) comment illustrates: It was recognised that we needed support from the field, on the job coaching and practical assessment We started a train the trainer program for the field team as we had agreement that the silos needed to be broken down to achieve greater collaboration Positive results in relation to working collaboratively to identify training needs were also reported from franchisor participants as the following comment illustrates: We introduced a training needs analysis process and worked very closely with the field support team to get those happening This was a great tool to bridge the gap between departments as we were working side by side with the field team, looking for solutions and gaps that training could help with They then started to play an active role in supporting training There are large differences in field support levels between franchise groups; however, franchise Group 4, who have the lowest level of field support, are experiencing very high participation and engagement levels which they attribute to the close collaboration with learning and development and senior management which presents to the franchisees as a holistic approach from the franchisor as the following (franchisor) comment illustrates: We all work together to achieve our objectives, training develops the content based on feedback from the field and delivers the training then we encourage participation and coach them on the job Table shows the level of field support provided by the franchisor in terms of the number of units to field support managers It was also noted by two of the franchise groups that the level of collaboration between learning and development and field support differed between the regions and was dependent upon the individuals concerned rather than being a part of the culture and structure as the following (franchisor) participant commented: In some regions field support was very proactive when training was delivered and often sat in on the program to see what covered so they could support in the field afterwards with participants In other regions, field support never showed an interest, so it differed in the regions and depended on the person Stay Ahead of a Game or Stay Still: The Impact of Learning and 231 Table Level of field support Period 1—2002 to 2007 Period 2—2008 to 2012 Period 3—2013 to 2017 Franchise Group 15:1 Franchise Group 9:1 Franchise Group 30:1 Franchise Group Formed in 2007 20:1 25:1 15:1 20:1 30:1 14:1 20:1 32:1 Source: authors’ own table Table Critical elements of the field support role Elements Business skills and operational skills OTJ coaching and reinforcement Capturing tacit knowledge OTJ practical assessment (behaviour and system compliance) Identify training needs and encourage participation Continuous professional development of the field team Implementers not messengers No of participants 45 42 39 38 24 21 12 References to topic 172 125 92 95 73 53 28 Source: authors’ own table Learning and development for the field support team was something that all groups described as a necessity, but none of them had done very much in relation to this during the period examined; however, one of the franchise groups had recognised that investment in developing field management resources was needed as illustrated by the following (franchisor) comment: Field managers are critical, they are a confidant, coach, mentor and policeman, they wear so many different hats and all the hats they wear they need to show really keen judgement not to stereotype or box franchisees in We need to give them the tools in analytics and the coaching skills to identify good behaviour We have had a poor franchisee experience and it’s because we’ve not done enough development of field managers We also investigated the opportunity for the field team to play a critical role in capturing and sharing tacit knowledge The majority expressed a belief that this should be, but isn’t occurring, as part of the field support role This (franchisor) comment is indicative of the majority: They (the field team) are ideally placed to listen and learn what is working well and share that with others There should be a structure put in place so that we can all listen, learn and share The interviews revealed a number of common elements that participants believe should be incorporated into the field support strategy in order to support learning and development strategy These are illustrated in Table 232 3.2.4 J Timms et al Theme 4: Communication Strategy The findings from ‘Stage One’ showed that a relational structure with a supportive organisational culture that focuses on learning orientation and knowledge sharing is more effective than the use of power to support learning and development strategies Participants from each case study were asked to describe the channel conditions (structure, climate, power and degree of tacitness) that exist within the group in relation to the communication strategy adopted to enable us to examine the match between extant channel conditions and their communication strategy The majority of the participants from three of the four franchise groups concurred in support of this proposition as illustrated by the following (franchisee) comment: Our culture is one of support for each other and has been for many years, franchisor and franchisees work together, we are very collaborative, issue are nipped in the bud quickly and there is no need for the franchisor to exert power, we have shared goals and franchisees help each other too However, the findings were inconclusive in relation to franchise Group due to broad differences in opinion between various players in the franchising relationship This phenomenon is consistent with a subtheme of differing perspectives that emerged from ‘Stage One’ of this research in relation to collaboration, culture and use of power, and further research is needed in this area 3.2.5 Theme 5: Franchisee Management Strategy ‘Stage One’ clearly identified the quality and calibre of franchisees as a factor in participation and engagement with learning and development strategy, and there was also consensus on this in ‘Stage Two’ It was widely reported that the higher-calibre franchisees tend to be the ones that support franchisor training initiatives As the following (franchisor) comment indicates: ‘We know that the most successful franchisees supported training and always sent people along, or attended themselves when it was franchisee training’ Furthermore, it was observed by many that lower-calibre franchisees tend to be the ones that don’t embrace learning and development: For some reason the less successful franchisees are the ones that don’t turn up and embrace training They are the ones who need it most, but they think they know it all and they have nothing to learn There was wide recognition from franchisee and franchisor participants that continuous professional development is needed throughout the franchising journey for a franchise group to optimise the success of their franchisees However, getting long-standing franchisees to recognise the need for professional development and embrace training remains a challenge as the following (franchisor) comment illustrates: Stay Ahead of a Game or Stay Still: The Impact of Learning and 233 Some franchisees think they know it all, they have been around for a long time and have nothing to learn, but the world is always changing, learning should be continuous so as a franchise system we continuously learn Some just don’t get that The most successful ones Moreover, it was observed by many that this lack of openness to learning by the long-standing franchisees hampers the ability to embrace the necessary changes in order to evolve and succeed, as expressed by the following (franchisor) comment: We need franchisees to be engaged and have openness to learning Over the long-term, business changes and we must evolve and change If you don’t have franchisees with the right attitude to learning they won’t embrace change and we will fall behind This erodes our competitive advantage The proposition that selection of high-quality franchisees with a high learning orientation was regarded by many as being equally important to the learning and development strategy Many espoused the importance of selecting only high-calibre franchisees with identified competencies and behavioural attributes The following (franchisor) comment is indicative of many: The calibre of franchisees in the system is also critical B grade people suck up field resources, so we should only recruit high quality franchisees We should look at openness to learning as a key attribute when recruiting Only one of the franchise groups reported that they use a rigorous recruitment and selection process for new franchisees The remaining three recognised this as a weakness in their system, concurring that in mature franchise systems new franchisees are usually purchasing existing units and it’s difficult for the franchisor to interfere with a sale It was also recognised that the manner in which the field team were rewarded for selling franchises impacted their desire to change and embrace new behaviours as suggested by this (supplier) participant: The way the field managers are rewarded is a factor, KPIs are financially based rather than on lead indicators and developing soft skills This creates too much focus on franchise sales and not enough on the franchisee quality One of the trainers reflected that low-calibre franchisees could be recognised during induction training and the granting of a franchise was subject to successfully passing the induction training programme, but this was also never enforced: We could usually tell that a franchisee was low calibre and wouldn’t make it during training I raised concerns about the abilities several new franchisees but they were still granted franchises which later failed sadly In summary, it was unanimous that it’s critical to get ‘the right people on the bus and the wrong people off the bus’ However, it’s equally critical that the franchisor ‘drives the bus better’ by managing performance and supporting current franchisees and exiting the disengaged poor performers Table summarises these elements To sum up, communication strategy was examined in depth, and whilst there is evidence to support the proposition that a relational structure with a supportive 234 J Timms et al Table Critical elements of franchisee management strategy Elements Accept only high-calibre franchisees Rigorous selection criteria based on identified competencies and behaviour attributes Exit disengaged franchisees Manage and support current franchisees No compromise No of participants 51 38 33 33 21 References to topic 179 141 89 87 52 Source: authors’ own table organisational culture that focuses on learning orientation and knowledge sharing is more effective than the use of power to support learning and development strategies, the findings were inconclusive in relation to one of the groups, due to inconsistent channel conditions and broad differences in opinion between players in the franchising relationship Further research is called for in this area to more rigorously test the proposition A model of best practice has emerged from this research which captures the essential elements required to implement a knowledge exchange framework to achieve successful channel outcomes from learning and development strategy This model is illustrated in Fig Conclusions This chapter provides a solid foundation for future research into the factors that influence successful learning and development execution in terms of achieving enhanced channel outcomes in the franchising sector The results of this study clearly indicate the importance of adopting a strategic rather than ad hoc approach to learning and development strategy and identified the critical elements to consider in such a strategy In addition, the need to adopt a fully integrated knowledge exchange framework was identified to capture share and transfer knowledge Furthermore, the calibre and nature of field support were confirmed as an effective mediator to the success of learning and development strategy as well as facilitating the capture of valuable tacit knowledge that exists within franchise systems, to support the conversion to explicit knowledge and subsequent sharing and transfer Finally, it was recognised that a franchise management system is needed to attract and develop high-calibre franchisees and create satisfaction and engagement with the franchise system • • • • • • • • • • • • • • • Share Knowledge Investment in L&D Resources Relevant, Useful & High Quality Content Flexible Time Efficient Blended Delivery Modes Enterprise Specific not necessarily accredited Skilled Training Specialists OTJ Coaching & Reinforcement Knowledge, Skills & Practical Assessment Measurable Learning Outcomes Continuous Professional Development Learning & Development Strategy Collaborative High Frequency Bidirectional Formal & Informal modes Indirect & direct contact High information richness Communication Strategy Franchise Sector Customers Franchisor Knowledge Management Strategy Suppliers and Industry Franchise Employees Franchise Owners • Systems & processes for capturing and sharing tacit knowledge • Dynamic Operations Manual • Comprehensive & Current Information • Fully Searchable • Fully Integrated with Training Content (Why, What, When & How) • Management working in franchise outlets • Knowledge sharing with other franchise groups and outside of franchising Convert to Explicit Knowledge Capture Tacit Knowledge • • • Accept only high calibre franchisees Rigorous selection criteria based on identified competencies & behaviour attributes Manage and support current franchisees Exit disengaged franchisees No compromise • • Relational Structure Supportive Culture Interchangeable Power Use High Tacitness Channel Conditions • • • • Fig Model for best practice Source: authors’ own figure Participation & Engagement Knowledge Transfer Behaviour Change • • • • • • • • • Customer Welfare Franchisee Welfare Franchise Staff Welfare Supplier Welfare Franchisor Welfare Franchise Sector Welfare Qualitative Outcomes Quantitative Outcomes Communication Strategy Knowledge Exchange Framework Franchisee Management Strategy Capturing Tacit Knowledge Implementers not messengers OTJ Practical Assessment OTJ Coaching & Reinforcement ID training needs & encourage participation • Business & Operational Skills • CPD of field team Field Support Strategy • • • • • Stay Ahead of a Game or Stay Still: The Impact of Learning and 235 236 J Timms et al References Attride-Stirling J (2001) Thematic networks: an analytic tool for qualitative research Qual Res (3):385–405 Australian Bureau of Statistics (2003) Employer training expenditure and practices, Australia, 2001–02 Retrieved from http://www.abs.gov.au/ausstats/abs@.nsf/mf/6362.0 Australian 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An empirical analysis of organizational choice J Bus Ventur 14(1):103–124 Yin RK (2014) Case study research: design and methods, 5th edn Sage, Los Angeles ... Marques Editors Subsistence Entrepreneurship The Interplay of Collaborative Innovation, Sustainability and Social Goals Editors Vanessa Ratten Department of Entrepreneurship, Innovation and Marketing... or they use technological devices? Overview of Chapters The chapters in this book all relate to the interplay of collaborative innovation, sustainability and social goals The second chapter of. .. Australia Subsistence Entrepreneurship: The Role of Collaborative Innovation, Sustainability and Social Goals Vanessa Ratten, Paul Jones, Vitor Braga, and Carla Susana Marques Abstract The goal of this