Can Franchisors Balance Adaptation and Standardization? Toward Theorizing Ambidexterity in Franchisors

Franchising is a business model repeated in different contexts; and indeed, it supposed to represent the same form of a known product and brand in different places; therefore, it requires observing a series of standards so that what given to a customer in a region is the same very global quality. Thus, emphasizing on the requirement of standardization in franchising contrasted with different geographical nature of market franchisees. Therefore, what is important in such situations is the franchisor capability in balancing two opposing activities of standardization and adapting to the environment. In organizational literature, creating the balance between opposing activities and indeed, simultaneously carrying out inconsistent activities referred as organizational ambidexterity. This paper reviews literature of franchisors’ organizational ambidexterity and organizational ambidexterity effect on performance. This is a review research in term of objective, which regularly studies ambidexterity issue through structured searching method. Research data collected through searching academic databases, studies and web sources. Research results and reviewing literature revealed that Alliance portfolio management capability, plural form, market diversity, as well as strategic orientation influence franchisors’ organizational ambidexterity.