Influence of Regulatory Framework on Franchise Management Capabilities and Operational Performance of Healthcare Entrepreneurship in Kenya

Abstract

This study examined the moderating influence of the regulatory framework on the relationship between franchise management capabilities and operational performance of healthcare entrepreneurship in Kenya.  The study adopted pragmatist philosophy and a sequential mixed-methods design with a target population comprising 11,150 health entrepreneurs, from which a sample of 386 respondents was selected using multistage sampling (stratified random and purposive sampling). Data were collected through a structured questionnaire and interview guide and analysed using SPSS and NVIVO to obtain both descriptive and inferential statistics, thematic results, respectively. Results show regulatory framework significantly moderated the relationship between management capabilities and operational performance of health care entrepreneurs. The implication is that the regulatory framework strengthens franchise management capabilities in the operational performance of healthcare entrepreneurship. The regulatory framework provides clarity, legal protection, and enforcement mechanisms that strengthen compliance, ensuring franchisees and franchisors operate within defined standards. While the existing legal framework offers clear guidelines on rights, obligations, and intellectual property protection, concerns about enforcement and compliance complexity are critical. Thus, the study recommends the strengthening and enforcement of the regulatory framework to ensure compliance and adherence, and that franchise businesses need to invest in continuous training programmes to ensure that staff are updated on regulatory changes and best practices. Finally, strategic partnership and collaboration between regulatory agencies and franchise operators is recommended, aimed at promoting compliance, efficiency, and business growth of the parties involved.