Many studies use the dynamic capabilities view as the literature shows that such capabilities are essential for innovation. This work focuses on dynamic managerial capabilities to highlight the interactions among the three dimensions of dynamic managerial capabilities (managerial human capital, managerial social capital, and managerial cognition) as this aspect remains overlooked. Consequently, we analyse how the three dimensions interact with one another as firms innovate to develop new products or services in franchise networks. Our qualitative study is conducted in 17 French Franchise networks and is based on 24 interviews. The results indicate that although the three dimensions are mobilised by managers, certain dimensions are interrelated with other dimensions, and two main types of dynamic capabilities can be identified in franchise systems. The first type is based on intuition and knowledge transfer, while the second type is based on a rational analysis of data and knowledge recombination.
