Franchise systems rely on a close cooperation between franchisors and franchisees. This collaboration allows the access to a large resource base, which is reconfigured to adapt. Franchisors are creators of the franchise concept and are key actors of the network, including to take innovation decisions. Most works have focused on the superior advantage of franchise systems but have not considered their ability to regularly generate new ideas in the network to innovate. This work focuses on a particular type of dynamic capabilities: dynamic managerial capabilities, which emphasize the role of managers in change and adaptation. As a result, it is interesting to understand the dynamic managerial capabilities and the franchise capabilities mobilized by franchise leaders to innovate in the network. To do so, we conduct a qualitative study, based on the analysis of various innovations within 4 franchise networks. This work highlights the micro-foundations of dynamic managerial capabilities and franchise capabilities displayed by franchisors to innovate.
