Creativity and Franchising - A study on how compatible a creative climate is within franchising systems

Abstract

As business environment are becoming increasingly complex and dynamic across markets, the need for innovations across industries is consequently rising. Among many of businesses resources, the creative acts of individuals are some of the key resources exploited by firms in the search for competitive advantages. Creativity and innovation are about constantly questing the status quo, while the main elements of the franchising business model are standardization and conformity. However, there is still a huge need for being creative within the franchising industry through introduction of new products, services and processes in order to stay in the forefront of competition. This thesis explores the prerequisites for a creative climate within franchising organizations by using the dynamic componential model of creativity and innovation by Amabile & Pratt as a theoretical base, interviewing four experts with more than 80 years experience in the field. The main findings of this study are that the evident hierarchy, along with the need for uniformity across locations can have hindering effects on creativity systemwide, but that other routes to Rome are continually used within Franchising. The analysis proposes that creativity and innovation is a key priority within franchising systems, but that the creativity and innovation activities are centered towards higher levels of hierarchy within the organization, in order to retain control over the system at large. Also, the alignment of values among organizational members within the system can have positive effects for fostering a creative climate within franchising systems.