Late studies of the franchise sectors have shown that the franchisees contribute highly to maintain the competitiveness of the franchise brand.
Do you have evidence of any other factors that promote innovation within the franchise sector? And of these innovations are more in the product, service provided, production, logistics, image, etc?
i think it is based on who the importance is related to. If the franchisor is too open minded to the franchisee that will definitely be a disadvantage to him especially if the franchisee disengages from the franchise agreement. So the openness of the franchisor does not in any way encourage innovation. But when the franchisor is a bit secretive it stares up the mind of the franchisee to seek for new method of improving the products or services provided. So I think that the entrepreneurial mind of the franchisee if more important to innovation if he is not satisfied with what the franchisor is selling to him/her. That skeptical mind stimulates a quest for innovation.
But for the franchisor to still stay on top and have the franchisee always depending on him, he much seek innovation consciously and consistently. So that the students will not be the ones teaching the lecturer, he/she must work hard to learn more so that he can have new ideas that draws the student's respect.
I am not trying to discourage franchisor from being open to the franchisee but he should seek to always know more than the franchisee else the franchisee will buy the franchisor's company tomorrow as competition becomes intended and the strategies of competitors become more unpredictable.
I did research in Croatia and found out the innovations are mostly introduced by franchisors since they like to have everything covered and they are not sure that franchisees can help them. Sometimes due to this franchisees leave the system. So in Croatia franchisors are not open to innovations coming from franchisees
I would suggest you look at the concept of organicity as developed by Khandwalla (1977) (https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0ahUKEwinivL-2_bQAhWaHsAKHUfaC2EQFggaMAA&url=https%3A%2F%2Fbooks.google.com%2Fbooks%2Fabout%2FThe_design_of_organizations.html%3Fid%3DdwO3AAAAIAAJ&usg=AFQjCNGJ9Uxa0w0VZl_Nv6FlXx4-rKL7xQ&sig2=1cHGYHJpMHF-hTMSb6whrQ&bvm=bv.141536425,d.ZGg) and measured by Covin and Slevin (1988) (http://onlinelibrary.wiley.com/doi/10.1111/j.1467-6486.1988.tb00033.x/abstract). You would have to modify it slightly to account for the franchisor-franchisee relationship being a bit different from a CEO-manager relationship, but it would still fit your research question really well. The Entrepreneurial Orientation (EO) concept (Covin & Slevin again) also seems like it'd be relevant to your project. Good luck!
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