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In the franchising market, transactions involve franchisees paying franchisors for the right to use their business models. In such transactions, the franchise fee functions as the transaction price, which is a critical component of profitability and the long-term survival of franchise brands. Based on Ohmae's 3Cs (i.e., cost, competition, and customers) model, this study investigates how strategic pricing approaches influence franchise fees. The empirical results suggest that franchise fees are influenced by the cost-based and the value-based approaches but not by the competition-based approach. Furthermore, among the approaches, the cost-based approach is found to have the greatest impact on the franchise fee, followed by the value-based and the competition-based approaches, respectively. Additional analysis found that the different pricing approaches are used depending on the business characteristics. By delineating the pricing mechanism of the franchise fee, these findings contribute to the literature on franchising in the hospitality industry, strategic management, and marketing and have important implications for industry practitioners. [ABSTRACT FROM AUTHOR]

Eco-innovation is the most promising way for enterprises to achieve green growth, and its adoption depends largely on executives' choices. Therefore, this study investigates how executives' ecological embeddedness affects the three dimensions of corporate eco-innovation by impacting two forms of executives' environmental awareness. Eco-innovation includes eco-management innovation (EMI), eco-process innovation (EPsI), and eco-product innovation (EPtI). Environmental awareness consists of environmental risk awareness (ERA) and environmental cost–benefit awareness (ECA). Furthermore, this study examines the interrelationships between the two forms of environmental awareness and among the three dimensions of eco-innovation. Data collected from 192 Chinese manufacturing firms were used to test the hypotheses. The results support most of the proposed hypotheses with some exceptions, such as ECA positively affecting EPtI only as a partial mediator between ecological embeddedness and EPtI. Our findings contribute to understanding the antecedents of eco-innovation and complement research on executives' social embeddedness. [ABSTRACT FROM AUTHOR]