INNOVATION - Influence of the Operating Environment on Organization Innovation: A Multiple Case Study of Food Franchises in Brazil

The importance of innovation in franchising chains is a reminder that franchisees can be seen as important sources of innovation in chains, but that they require mechanisms of governance so that these innovations can be effective. Thus, the goal of this paper is to analyze and discuss the process of innovations in franchise companies, based on organizational innovation. We will examine four aspects previously defined as innovation drivers: the professionalization of the franchisor, the management of relationships with franchisees, the performance of franchisees with entrepreneurial profiles and the role of knowledge management. Therefore we use a multiple-case study involving two important franchising food chains in Brazil: the Giraffas and the Trendfoods Group. Brazil presents revenues of some US$30 billion with almost 72,000 units franchised by 1,380 chains. Interviews lasted on average one hour and thirty minutes, and were conducted with the Director of Operations (Trendfoods) and the Director of Planning (Giraffas). The results reveal: The franchisor’s professionalization, better-qualified professionals will enjoy conditions allowing them to participate more actively in their tasks, and while new competences are generated, organizational or product innovations. The franchisor–franchisee relationship, in the case of the Giraffas, it was possible to observe the weight of the franchisor in the generation of innovations in partnership with its suppliers. As for the Trendfoods Group, franchisor credits to relationships with its franchisees. The entrepreneurial role within the franchising model is questionable, in the case of the Giraffas, it was evidenced that the chain is preoccupied with having franchisees able to implement the innovations created by the franchisor. The participation of the Trendfoods franchisees is relevant, and they are responsible for some 30% of the innovations. Knowledge management, both at the Giraffas chain and the Trendfoods Group, the circle of informal communication among franchisees fosters the exchange of information.

2013 - Innovation Trendfoods e Giraffas - IJM - Pedro, Tales, Moacir, Felipe.pdf (678344)