The article "Zu viel des Guten? Risikoneigung, Leistungsmotiv und die Leistung von Franchisenehmern" by Thorsten Semrau (University of Trier), Tessa Willmann (audibene GmbH), and Yannick Loeppke (University of Trier) was published in the journal "Betriebswirtschaftliche Forschung und Praxis."
The article reveals interesting correlations between two personality traits—risk propensity and achievement motive—and the business success of franchisees. Both traits are recognized as significant drivers of entrepreneurial success. The initial hypothesis is that too much or too little of these traits does not necessarily lead to success, but rather their effect on business performance follows an inverted U-shaped curve. In other words, a moderate level of risk propensity and achievement motive seems to be most favorable for franchisees. By analyzing comprehensive data from 276 franchisees across 47 different franchise systems, the researchers were largely able to confirm their hypotheses. The study's findings emphasize not only the value of moderate risk propensity and achievement motive but also provide important insights for future research and practical applications in the field of franchising. These insights go beyond pure academia; they offer valuable guidance for selecting franchisees by highlighting how a balanced level of risk-taking and achievement motivation can lay the foundation for business success.
The article is accessible at the following link: https://datenbank.nwb.de/Dokument/1041558/?wherefrom=Magazine.
Abstract: This study examines how risk propensity and achievement motivation—two personality traits associated with entrepreneurial behavior and success—affect the performance of franchisees. Specifically, hypotheses are developed on why the relationships between franchisee performance and a) their risk propensity and b) achievement motivation are each inversely U-shaped. Results from multi-level analyses based on data from 276 franchisees across 47 franchise systems largely support the developed hypotheses. The implications of the generated insights for research and practice are discussed.