A Resource-Based View of Three Forms of Business in the Startup Phase: Implications for Franchising

Dianne H.B. Welsh, Amy E. Davis, David E. Desplaces, Cecilia McHugh Falbe


The decision to buy a franchise, start a new independent business, or buy an existing business is a critical decision faced by entrepreneurs. This study uses the Resource-Based View (RBV) of organizations to compare franchisees in the startup phase to both entrepreneurs who start new independent businesses and entrepreneurs who purchase established businesses. Our analysis of U.S. data from the Kauffman Firm Survey found similarities among those starting franchises and purchasing existing independent businesses. Implications for future research and practice are discussed.

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