Mutual Franchise Success as a Result of Strategic Staffing Fit in Mobile Telecom Business: The Moderating Effects of Complementary Resources
Abbey Mutumba, Akisoferi Wesonga Masese, Simon Odera Sabano
Abstract
Background: Across the world, most businesses in emerging markets are theoretically and practically
characterized by significant competition, price reductions, increased product and distribution innovations as they
contribute to fast economic growth in their respective countries. The resource scarcity theory posits that mobile
telecom businesses such as those in Uganda’s competitive mobile telecom sector choose to use the franchising
strategy in order to counteract the limited staffing, financial, knowledge and other key resources limitations in
their strategic directions. Study Purpose: This study aimed at understanding how strategic staffing fit leads to the
needed mutual success among the respective franchise partners especially when moderated by complementary
resources sharing. The unit of inquiry was a franchise business entity while the units of inquiry (respondents)
were managers (on ground) and another key employee who has customer contact in the particular mobile telecom
business. The Findings: The results revealed that strategic staffing fit is positively related to mutual franchise
success at a high level of significance in the mobile telecom businesses (adjusted R²=0.082; F=10.251; β=0.302;
p= 0.002) in Model 1. The Final Model (Model 3) where complementary resources was introduced and found to
be positively affected (with β=0.626; p= 0.000) and strategic staffing fit (β=0.328; p= 0.009). So, complementary
resources sharing significantly and positively moderates the relationship between strategic staffing fit and mutual
franchise success in competitive mobile telecom business of developing countries like Uganda. Managerial
Implications: The respective mobile telecom managers in a developing country like Uganda need to first evaluate
the current and future co-existence of the fit and resources before any franchise contract engagement. It then
becomes easier to achieve the needed mutual franchise success during the next franchise contract engagements
between both business partners. This sustains the businesses’/sub-sector’s competitiveness hence the respective
developing country’s faster economic growth and transformation through the franchising strategy.
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