Franchisee business continuity and survival strategies : Navigating external shock in Malaysia's franchising ecosystem

Authors

  • Nurul Faizah Halim UMK, Malaysia
  • Zuraimi Abdul Aziz Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Malaysia
  • Nor Hafiza Othman Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Malaysia
  • Nurul Ashykin Abd. Aziz Faculty of Industrial Management, Universiti Malaysia Pahang Al-Sultan Abdullah, Malaysia

DOI:

https://doi.org/10.32890/gbmr2025.17.1.2

Keywords:

Franchise Ecosystem, Franchisor Support, Government Support, Market Orientation Strategy

Abstract

Franchise sector has significant contribution to local and global economic growth and development, yet franchisees' long-term viability remains uncertain in times of global crisis. The current investigation examines the impact of market orientation, franchisor assistance, and government support on franchisee survival ability in Malaysia. Data was collected from 198 Malaysian franchisees using the survey approach. The  analysis was carried out using structural equation modelling. The results demonstrated that market orientation (β=0.283, ρ<0.001), franchisor support (β=0.169, ρ<0.001), and government  support (β=0.302, ρ<0.001), have significant positive impact on franchisee survival ability, indicating small to medium effect size FR (f2=0.022), GS (f2=0.073) and MO (f2=0.17). This study emphasized the importance of survival strategy, strategic networks and external alliances in times of global crisis, demonstrating their contribution to a resilient franchisee ecosystem. These findings fill gaps in the existing literature on sustainable franchising and provide feasible recommendations for policymakers, practitioners, and researchers to improve franchisee resilience and continuity. This research establishes a solid foundation for fostering continuity of franchisee in the face of economic and environmental uncertainty.

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Author Biographies

  • Zuraimi Abdul Aziz, Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan

    Assoc. Prof. Ts. Dr. Zuraimi Bin Abdul Aziz PhD, FCILT, MIMM, P. Tech (TL) is an Associate Professor as well as the Director of the Centre for Strategic and Risk at Universiti Malaysia Kelantan. He is a Chartered Fellow of The Chartered Institute of Logistics and Transport (FCILT), Member of Malaysia Board of Technologist and Member of Institute of Marketing Malaysia (MIMM). He provides consultancy and training for the number of companies with on the field expertise such as Strategic Planning, Logistics & Supply Chain, Chartering, International Trade, Port, Shipping & Maritime Transportation, Procurement, Commercial, and Business Development. He spent almost 15 years in Oil & Gas, Petrochemicals, Port Management, Logistics and Supply Chain, and Manufacturing before joining the academic field.

  • Nor Hafiza Othman, Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan

    Dr. Nor Hafiza Othman is a senior lecturer at the Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan (UMK). She specializes in entrepreneurship, franchising, and business sustainability. Her research focuses on franchisee resilience, business survival strategies, and small business development. Actively engaged in research, she collaborates on various projects related to business management, innovation, and strategic entrepreneurship, fostering growth in Malaysia’s franchising ecosystem.

  • Nurul Ashykin Abd. Aziz, Faculty of Industrial Management, Universiti Malaysia Pahang Al-Sultan Abdullah

    Dr. Nurul Ashykin Abd. Aziz is a Senior Lecturer at the Faculty of Industrial Management, Universiti Malaysia Pahang Al-Sultan Abdullah (UMP). She holds a Ph.D. in Entrepreneurship from Universiti Kebangsaan Malaysia (UKM). Her research interests include entrepreneurship, franchising, marketing, retailing, and qualitative studies. She has published in reputable journals, contributed to book chapters, and presented at international conferences. Actively involved in research, she collaborates on projects focusing on business sustainability, strategic management, and entrepreneurial innovation.

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30-06-2025

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How to Cite

Halim, N. F., Abdul Aziz, Z., Othman, N. H., & Abd. Aziz, N. A. (2025). Franchisee business continuity and survival strategies : Navigating external shock in Malaysia’s franchising ecosystem. Global Business Management Review (GBMR), 17(1), 21-38. https://doi.org/10.32890/gbmr2025.17.1.2