Abstract:
Commonly, franchising literature draws explanations on franchising decisions on organizational learning theory, which focuses on the impact of economic factors. In this study, we re-examine franchising decisions, success and failures through incorporating an institutional perspective in additional to the organizational learning perspective to account for both economic and social factors. The research mainly aims to provide a comprehensive overview of knowledge transfer practices and the impact of its effectiveness in achieving institutional isomorphism, specifically coercive and mimetic institutional isomorphism. Knowledge transfer practices and their effectiveness are a fundamental component in the success of franchise networks. Meanwhile, achieving institutional isomorphism is crucial in brand conformity. This study employed multiple case study analysis alongside a qualitative approach by utilizing the Eisenhardt method for inductive analysis to elaborate existing theories, mainly institutional theory. With a comprehensive analysis of the results, this study concludes that the realization of coercive and mimetic isomorphism can be achieved by both the franchisor and franchisee through knowledge transfer practices. The achievement of coercive isomorphism and mimetic isomorphism is dependent on which franchise network they belong to. This study, firstly, classifies franchise networks as they denote the type of franchise relationship each franchisor and franchisee have with regards to knowledge transfer practices and their effectiveness as well as partnersspecific characteristics. Secondly, this study makes key contributions to the knowledge transfer literature on the under-researched reverse knowledge transfer in international franchises and also to institutional theory on the under-researched relational power in achieving institutional isomorphism. Thirdly, applying both organizational learning theory and institutional isomorphism theory in Cambodia provides various academic and managerial insights drawn from the co ntr s rich-context factors that is shown in an overview of franchising relationship and business in the country.
