Comparing decision-making strategies in accounting franchises and independent brands: a causation and effectuation approach
Comparando estratégias de tomada de decisão em franquias contábeis e marcas independentes: uma abordagem de causation e effectuation
DOI:
https://doi.org/10.53660/CLM-3418-24I32Palavras-chave:
Decision-making process; Causation; Effectuation; Accounting Franchise; Structural equation modeling.Resumo
This study examines the decision-making performance of entrepreneurs choosing between accounting franchises and independent brands through the lens of Causation and Effectuation theories. The research question addressed is: How does decision-making performance manifest when starting an accounting franchise versus an independent brand in light of Causation and Effectuation theories? This quantitative study employed a survey approach. The research population consisted of accounting enterprises—both franchises and independent brands—registered with the Brazilian Federal Accounting Council (CFC, 2023). The subjects were 718 entrepreneurs, including 312 accounting franchisees and 406 independent brand owners. The study utilized a questionnaire adapted from Chandler et al. (2011), Brettel et al. (2012), Appelhoff et al. (2015), and Neely, Gregory & Plattys (1995), with data analyzed using Structural Equation Modeling via the Partial Least Squares (PLS) approach. The findings provide crucial and practical insights for entrepreneurs who participated in the study and those facing similar decisions between launching their own brand or investing in a franchise. Both franchise and independent brand entrepreneurs can evaluate the best way to proceed by applying both the Causation and Effectuation theories.
Downloads
Referências
Alon Ed. (2014). Franchising Social, Palgrave Macmillan, Reino Unido.
Appelbaum, Deniz; Kogan, Alexandre; Vasarhelyi, Miklos; Yan, Zhaokai, (2017). Impact of business analytics and enterprise systems on managerial accounting, International Journal of Accounting Information Systems, Volume 25, Pages 29-44, 0895.
Appelhoff, D., Mauer, R., Collwaert, V. & Brettel, M. (2015). The conflict potential of the entrepreneur’s decision-making style in the entrepreneur-investor relationship. Springer Science+Business Media New York. Springer Science+Business Media Nova York.
Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182.
Bass, D. A., Parce, J. W., Dechatelet, L. R., Szejda, P., Seeds, M. C., & Thomas, M. (1983). Flow cytometric studies of oxidative product formation by neutrophils: a graded response to membrane stimulation. The Journal of Immunology, 130(4), 1910-1917.
Björklund, Tua A., Mikkonen, Mattila, Pauliina; Marel, Floris van der. (2020). Expanding entrepreneurial solution spaces in times of crisis: Business model experimentation amongst packaged food and beverage ventures, Journal of Business Venturing Insights, Volume 14, e00197. ]
Brand, M. J.; Croonen, E. P. M.; Leenders, R. T. A. J. (2017). Entrepreneurial networking: a blessing or a curse? Differential effects for low, medium and high performing franchisees. Small Business Economics, v. 50, n. 4, p. 783-805. https://doi.org/10.1007/s11187-017-9895-1
Brettel, M., Mauer, R., Engelen, A., & Küpper, D. (2012). Corporate effectuation: entrepreneurial action and its impact on the performance of R&D projects. Journal of Business Venturing, 27(2), 167–184.
Chandler, G. N., DeTienne, Dawn R., Mckelvie, A., Mumford, T. V. (2011). Causation and effectuation processes: A validation study. Journal of Business Venturing. Volume 26, Issue 3, May 2011, Pages 375-390.
Chin, Wynne W. T partial least squares approach to structural equation modeling. Modern methods for business research, v. 295, n. 2, p. 295-336, 1998.
Croonen, EPM & Brand, MJ, (2015). Antecedentes das respostas do franqueado à mudança estratégica iniciada pelo franqueador. Jornal Internacional de Pequenas Empresas. 33 (3), 254-276.
Da Rocha, A., Simões, V. C., de Mello, R. C.; Carneiro, J. (2017). From global startups to the borderless firm: Why and how to build a worldwide value system. Journal of International Entrepreneurship, 15(2), 121–144.
Dahlia Fernandez & Aini Aman (2018) Impacts of Robotic Process Automation on Global Accounting Services. Asian Journal of Accounting and Governance 9: 123–131.
Dew, N. (2003). Lipsticks and razorblades: How the auto ID center used pre-commitments to build the internet of things. University of Virginia.
Federal Accounting Council – CFC, (2023). Statistical data: active professionals in the Regional Accounting Councils on 01/28/2023. Brasília-DF: CFC/Vice-Presidency of Registration/Registration Coordination, 2023. Available at: https://www3.cfc.org.br/spw/crcs/ConselhoRegionalAtivo.aspx. Acesso em: 28 jan. 2023.
Fidelis, A., Alvarado, S., Barradas, A., & Pivello, V. (2018). The Year 2017: Megafires and Management in the Cerrado. Fire, 1(3), 49.
Fornell, C. & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, p. 39-50.
Frishammar, J. (2003). Information use in strategic decision making. Management decision, 41(4), 318-326.
Galkina, T., & Lundgren-Henriksson, E. L. (2017). Coopetition as an entrepreneurial process: Interplay of causation and effectuation. Industrial Marketing Management, 67, 158-173.
Grégoire, D. A., & Cherchem, N. (2020). A structured literature review and suggestions for future effectuation research. Small Business Economics, 54(3), 621-639.
Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2021). A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications.
Hanafiah, M. H., Ghani, M. F. A., Isa, R. M., & Abd Hamid, H. (2023). Critical success factors of franchising firms: A study on franchisors and franchisees. Administrative Sciences, 13(1), 1-16.
Harms, R. & Holger, S. (2012). Antecedents and consequences of effectuation and causation in the international new venture creation process. J Int Entrep, 10:95–116.
Henseler, J., Ringle, C.M. and Sinkovics, R.R. (2009), "The use of partial least squares path modeling in international marketing", Sinkovics, R.R. and Ghauri, P.N. (Ed.) New Challenges to International Marketing (Advances in International Marketing, Vol. 20), Emerald Group Publishing Limited, Leeds, pp. 277-319.
Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2014). Entrepreneurship-9. Amgh Editora.
Hollander, M., Wolfe, D. A., & Chicken, E. (2013). Nonparametric statistical methods. John Wiley & Sons.
Holm, S. (1979). A simple sequentially rejective multiple test procedure. Scandinavian Journal of Statistics, 6, 65–70. Stable URL: http://www.jstor.org/stable/4615733
Howard, Matt C. (2019) "Pré-teste de escala", Avaliação prática, pesquisa e avaliação: Vol. 23, Artigo 5.
Howieson, Bryan (2003). Accounting practice in the new millennium: is accounting education ready to meet the challenge?, The British Accounting Review, Volume 35, Issue 2, 2003, Pages 69-103.
Jiang, Y. & Ruing, C. (2017). C. Opening lhe Black Box of Effectuation Processes: Characterístics and Dominant Types. Entrepreneurship Theory and Practive, 43 (1), 171-202.
Kaiser, H.F. (1958). The varimax criterion for analytic rotation in factor analysis. Psychometrika 23, 187–200 (1958). https://doi.org/10.1007/BF02289233
Kim, W. C. & Mauborgne, R. (2014). Blue ocean strategy, expanded edition: How to create uncontested market space and make the competition irrelevant. Harvard business review Press.
Kock, N & Hadaya, P. (2018). Minimum sample size estimation in PLS‐SEM: The inverse square root and gamma‐exponential methods. Information systems journal, v. 28, n. 1, p. 227-261.
Kristinsson, K., Candi, M., & Sæmundsson, R. J. (2016). The relationship between founder team diversity and innovation performance: The moderating role of causation logic. Long Range Planning, 49(4), 464-476.
Kroon, Nanja; Alves, Maria do Céu, Martins, Isabel (2021). The Impacts of Emerging Technologies on Accountants’ Role and Skills: Connecting to Open Innovation—A Systematic Literature Review. Journal of Open Innovation: Technology, Market, and Complexity. Volume 7, Issue 3, September 2021, 163.
Kuckertz, Andreas, (2011). Entrepreneurship Education – Status Quo and Prospective Developments. Journal of Entrepreneurship Education, Vol. 16, pp. 59-71.
Lavieri, C. A., Corrêa, H. L., & da Cunha, J. A. C. (2016). Franchising control and performance: a study on the organizational performance evaluation activities conducted by franchisors. REGE Revista De Gestão, 22(3), 337-355.
Lee, Y., Kim, S., Seo, M. & Hight, S. K. (2015). Market orientation and business performance: evidence from franchising industry. International Journal of Hospitality Management, 44, 28-37.
Li, L., Su, F., Zhang, W., & Mao, J. Y. (2018). Digital transformation by SME entrepreneurs: A capability perspective. Information Systems Journal, 28(6), 1129–1157.
Madanoglu, M., Lee, K., & Castrogiovanni, G. J. (2011). Franchising and firm financial performance among US restaurants. Journal of Retailing, 87(3), 406-417.
Mayberry, Robert., Boles, James S., Donthu., Naveen., Lucke, James T., (2020). Crisis response in an era of Knightian uncertainty, Journal of Business Research, Volume 170, 114288.
Merida, Adrian L., Rocha, Vera, (2021). It's about time: The timing of entrepreneurial experience and the career dynamics of university graduates, Research Policy, Volume 50, Issue 1,104135.
Morgan, D. L. (2015). From Themes to Hypotheses: Following Up With Quantitative Methods. Qualitative Health Research, 25(6), 789–793.
Morse, J. (2008). Confusing categories and themes. Qualitative Health Research, 18, 727–728.
Naradda Gamage, Sisira Kumara, EMS Ekanayake, GAKNJ Abeyrathne, RPIR Prasanna, JMSB Jayasundara, and PSK Rajapakshe. (2020). A Review of Global Challenges and Survival Strategies of Small and Medium Enterprises (SMEs). Economies 8, no. 4: 79.
Neely, A., Gregory, M. & Platts, K. (1995). Performance Measurement System Design: A Literature Review and Research Agenda. International Journal of Operations & Production Management, 15, 80-116.
Olivé-tomás, A.; Harmeling, S.S. (2019). The rise of art movements: na effectual process modelo of Picassos and Braque´s give-and-take during the creation of Cubism (1908-1914). Small Business Economics, 1-24.
Parra, X., Tort-Martorell, X., Alvarez-Gomez, F., & Ruiz-Viñals, C. (2023). Chronological evolution of the information-driven decision-making process (1950–2020). Journal of the Knowledge Economy, 14(3), 2363-2394.
Peña-Ayala, A., & Villegas-Berumen, H. G. (2020). Evaluation of the influence that higher education boosts on students’ entrepreneurial proclivity: Evidence from Mexico and Spain. The International Journal of Management Education, 18(3), 100404.
Read, S., & Sarasvathy, S. D. (2005). Knowing what to do and doing what you know: Effectuation as a form of entrepreneurial expertise. The Journal of Private Equity, 9(1), 45-62. https://doi.org/10.3905/jpe.2005.605370
Saloua Said; Hafida Bouloiz and Maryam Gallab (2023). New model for making resilient decisions in an uncertain context:the rational resilience-based decision-making model (R2DM). Decision Making: Applications in Management and Engineering Vol. 6, Issue1, pp.34-56.
Sarasvathy, S. D. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of management Review, 26(2), 243-263.
Sarasvathy, S. D. (2008). Effectuation: Elements of Entrepreneurial Expertise. Edward Elgar Publishing.
Sarasvathy, S. D.; Dew, N. (2005). Entrepreneurial logics for a technology of foolishness. Scandinavian Journal of Management, v. 21, n. 4, p. 385-406.
Scazziota, V. V., Andreassi, T., Ribeiro Serra, F. A., & Guerrazzi, L. (2020). Expanding knowledge frontiers in entrepreneurship: examining bricolage and effectuation. International Journal of Entrepreneurial Behavior & Research, 26(5), 1043–1065.
Simon, H. A. (1979). Rational decision making in business organizations. The American economic review.
Tasic, I., & Andreassi, T. (2008). Strategy and entrepreneurship: Decision and creation under uncertainty 1. Journal of Operations and Supply Chain Management, 1(1), 12-23.
Teague, J. & Eilon, S. (1973). Productivity measurement: A brief survey, Applied Economics, 5:2, 133-145.
Tenenhaus, M.; Vinzi, V.; Chatelin, Y. e Lauro, C. (2005). PLS path modeling. Computacional statistics & Data Analysis.
Vinholis, M. D. M. B., Souza, H. M. D., Carrer, M. J., Barioni, W., & Chaddad, F. R. (2016). Complementarity in the adoption of traceability of beef cattle in Brazil. Production, 26, 540-550.
Vuong, Q. H., Do, T. H., & Vuong, T. T. (2016). Resources, experience, and perseverance in entrepreneurs’ perceived likelihood of success in an emerging economy. Journal of Innovation and Entrepreneurship, 5(18), 1–24.
Wu, Chih-Wen (2015). Antecedents of franchise strategy and performance. Journal of Business Research, 68(7), 1581–1588.
Zivdar, M., Imanipour, N., Talebi, K., & Hosseini, S. R. (2017). An explorative study of inputs for entrepreneurs’ decision-making to create new venture in a high-tech context. The International Journal of Entrepreneurship and Innovation, 18(4), 243-255.
