The Effect of Supporting Activities for Win-win Partnership Between Franchisees and Franchisers on Re-contract Intention and Management Performance through Dynamic Trust

프랜차이즈 가맹본부와 가맹사업자간 상생을 위한 지원활동이 동적신뢰를 통해 경영성과 및 재계약의도에 미치는 영향

  • Lee, Myung Jin (Graduate School of Information Science in Soongsil University) ;
  • Lee, Sang Won (Graduate School of Business in Hoseo University)
  • 이명진 (숭실대학교 정보과학대학원) ;
  • 이상원 (호서대학교 경영대학원)
  • Received : 2020.07.14
  • Accepted : 2020.08.21
  • Published : 2020.08.31

Abstract

The aim of this study is to investigate the correlation between the support activities provided by the franchiser and how they affect the intention of the contract renewal and business performances made by franchisees, developing dynamic trust between these transactional partners. Various supportive activities between franchiser and franchisees were divided into financial and non-financial activities and dynamic trust into Transitional-based trust, Calculative-based trust, Relational-based trust, and Balanced-based trust. These trust types, which are variable and adjustable based on the opportunistic behaviors of business parties, were applied to define the impact of the support activities on the contract renewal intention and the performances. This study was developed around domestic franchisees. An investigator visited business owners and manager level-employees, explained the purpose of the survey prior to the response, and the answers were directly written by hands. A total of 348 copies were used for the analysis. As the results of the analysis, first, financial support activities were found to have a positive(+) effect on transitional-based trust, calculative-based trust, and balanced-based trust. On the other hand, non-financial support activities were found to have a positive(+) effect on calculative-based trust, relational-based trust, and balanced-based trust, and there was no significant relationship on transitional-based trust. Second, the dynamic trust had a statistically significant positive(+) effect on inducing the contract renewal. Lastly, in the relationship between the dynamic trust and its impact on business performances, only transitional-based trust, and relational-based trust were found to have a positive(+) effect on the financial performances. In addition, relational-based trust showed a meaningful positive(+) relationship on the non-financial performances, and non-financial performace showed a meaningful positive(+) relationship on the re-contract intention. From the results, it can be concluded that the financial and non-financial activities for a win-win partnership between franchiser and franchisees are essential in not only forming dynamic trust but also boosting business performances as well as maintaining the business relationship. Thus, it suggests that building a win-win partnership can be promoted more efficiently by specifying activities best suitable for a particular relationship. In addition, a specific set of activities could be presented for establishing the level of trust that is formed in situations that vary depending on transaction risks and interdependency arising from having the transactional relationship based on the contract as the franchise industry features. Eventually, it is expected that this study can provide a way to promote the qualitative improvement of the franchise industry by identifying factors essential to establishing a sustainable win-win system and relationships that can improve the business performance of franchisees.

본 연구에서는 국내 프랜차이즈 가맹점들을 대상으로 가맹본부의 지원활동이 가맹사업자간 가변적인 신뢰, 즉 동태적 신뢰를 통한 가맹본부와 재계약 의도 및 경영성과와의 관계를 규명하고자 하였다. 이를 위해 프랜차이즈 사업자간 이루어지는 다양한 활동을 재무적 지원활동과 비재무적 지원활동으로 구분하고, 거래관계에서 발생가능한 기회주의적 행동으로 인해 가변적으로 변화하는 신뢰 개념을 정의하고 있는 동태적 신뢰개념의 유형인 과도기적 신뢰, 계산기반 신뢰, 관계기반 신뢰 및 균형기반 신뢰를 적용하여 사업자간 재계약과 경영성과(재무적 성과 및 비재무적 성과)와의 관계를 밝히고자 하였다. 이를 위해, 국내 프랜차이즈 가맹점의 사업주 및 관리자 급을 대상으로 조사원이 직접 방문하여 설문 목적을 설명하고 직접 기입식으로 진행하였다. 분석에는 총 348부가 사용되었다. 분석결과, 첫째, 재무적 지원활동은 과도기적 신뢰, 계산적 신뢰 및 균형적 신뢰에서 정(+)의 유의한 영향을 미치는 것으로 나타났다. 반면, 비재무적 지원활동은 계산적 신뢰, 관계적 신뢰 및 균형적 신뢰에서 정(+)의 유의한 영향을 미치는 것으로 나타났으며, 과도기적 신뢰에서는 유의한 관계가 없는 것으로 나타났다. 둘째, 동태적 신뢰가 재계약 유도에 미치는 관계균형기반 신뢰가 통계적으로 유의한 정(+)의 관계가 나타났다. 셋째, 동태적 신뢰와 경영성과와의 관계에서는 재무적 성과에서는 과도기적 신뢰와 관계기반 신뢰가 정(+)의 관계가 나타났다. 또한 비재무적 성과에는 관계적 신뢰만이 통계적으로 유의한 정(+)의 관계가 검증되었다. 또한 경영성과와 재계약의도와의 관계에서는 비재무적 성과만이 통계적으로 유의한 정(+)의 관계가 검증되었다. 즉, 프렌차이즈 이해관계자 간의 상생을 위한 재무적 및 비재무적 활동은 동태적 신뢰형성과 함께, 경영성과뿐만 아니라 지속적인 관계유지와의 관계를 규명함으로써, 상생협력을 위한 가맹본부와 가맹점 간 집중가능 한 활동을 통해 그 가능성을 제시하였다. 또한 프랜차이즈 산업과 같이 계약기반의 거래 특정적 관계로 계약이행에 대한 이해관계, 계약유지에 대한 이해관계 등 거래상 위험과 상호의존성에 따라 가변적으로 상황에서 형성되는 신뢰수준 구축을 위한 활동을 제시할 수 있었다. 이처럼, 프랜차이즈 산업의 지속적인 상생시스템 구축에 필수적으로 요구되는 관계형성뿐만 아니라 가맹사업자의 경영성과를 개선할 수 있는 관계를 규명함으로써 함으로써 프랜차이즈 산업의 질적 향상을 도모할 수 있는 방안을 제시할 수 있을 것으로 기대한다.

Keywords

References

  1. Aldrich, H., & Auster, E. R.(1986). Even dwarfs started small: Liabilities of age and size and their strategic implications. in B.M. Staw & L.L. Cummings(Eds.). Research in organizational behavior. Greenwich. CT: JAL Press Inc
  2. Anderson, J. C., & Narus, J. A.(1990). A Model of Distributor Firm and Manufacturer Firm Working Partnerships. Journal of Marketing, 54(Jan.), 42-58. https://doi.org/10.1177/002224299005400304
  3. Barber, B.(1983). The Logic and Limits of Trust. New Jersey. Rutgers University Press.
  4. Bensaou, M., & Venkatraman, N.(1995). Configurations of Interorganizational Relationships: A Comparison between U.S. and Japanese Automakers. Management Science, 41(9), 1471-1492. https://doi.org/10.1287/mnsc.41.9.1471
  5. Carney, M., & Eric, G.(1991). Vertical Integration in Franchise Systems: Agency Theory and Resource Explanations. Strategic Management Journal, 12(8), 607-629. https://doi.org/10.1002/smj.4250120804
  6. Castrogiovanni, G. J., Combs, J. G., & Justis, R. T.(2006). Resource Scarcity and Agency Theory Predictions Concerning the Continued Use of Franching in Multi-outlet Networks. Journal of Small Business Management, 44(1), 27-44. https://doi.org/10.1111/j.1540-627X.2006.00152.x
  7. Carmines, E. G., & Zeller, R. A. (1979). Reliability and Validity Assessment(Vol. 17). Thousand Oaks: CA Sage.
  8. Chae, S. I.(2016). Social Science Research Method and Analysis. Seoul: B&M books.
  9. Chiles, T. H., & McMackin, J. F.(1996). Integrating Variable Risk Preference, Trust and Transaction Cost Economies. Academy of Management Review, 21(1), 73-99. https://doi.org/10.5465/amr.1996.9602161566
  10. Cho, H. J.(2006). The Effect of Transactional Characteristics on Trust and Satisfaction in the Franchise System: Focus on the Domestic Foodservice Franchising. Korea Distribution Association, 9(3), 71-93.
  11. Chiou, J. S., Hsieh, C. H., & Yang, C. H.(2004). The Effect of Franchisors' Communication, Service Assistance, and Competitive Advantage on Franchisees' Intentions to Remain in the Franchise System. Journal of Small Business Management, 42(1), 19-36. https://doi.org/10.1111/j.1540-627X.2004.00095.x
  12. Cho, J. H.(2006). Appreciation in Depth about Franchise Systems. Kyeongji-do: Korean Studies Information.
  13. Coo, B. M.(2018). Improvement Factors on Management Performance of Global Distribution Franchise Firms. Journal of Distribution Science, 16(3), 33-47. https://doi.org/10.15722/jds.16.3.201803.33
  14. Choi, J. Y., & Park, J. Y.(2007). Antecedents and consequences of cognitive and affective trust in franchiser-franchisee relationships in the context of restaurant franchise. Journal of Marketing Management Research, 12(2), 61-76.
  15. Fornell, C., & Larcker, D. F.(1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104
  16. Frazier, G. L.(1983). Inter-organizational Exchange Behavior in Marketing Channels: A Broadened Perspective. Journal of Marketing, 47(4), 68-78. https://doi.org/10.1177/002224298304700207
  17. Gambetta, D. F.(1988). Trust: Making and Breaking Cooperative Relations. Oxiford Cambridge: Basic BlackWell.
  18. Ganesan, S.(1994). Determinants of Long-term Orientation in Buyer-seller Relationships. Journal of Marketing, 58(2), 1-19. https://doi.org/10.1177/002224299405800201
  19. Gaski, J. F.(1984). The Theory of Power and Conflict in Channels of Distribution. Journal of Marketing, 48(Summer 1984), 9-29. https://doi.org/10.1177/002224298404800101
  20. Gillis, W. E., & Combs, J. G.(2009). Franchisor Strategy and Firm Performance: Making the Most of Strategic Resource Investments. Business Horizons, 52(6), 553-561. https://doi.org/10.1016/j.bushor.2009.07.001
  21. Grewal, R., & Dharwadkar, R.(2002). The Role of the Institutional Environment in Marketing Channels. Journal of Marketing, 66(3), 82-97. https://doi.org/10.1509/jmkg.66.3.82.18504
  22. Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate Data Analysi(5th ed). New Jersey: Prentice Hall Inc.
  23. Han, S. H., Bae, G. C., & Lee, J. H.(2011). The Effect of Franchisor's Pre-open Support Services on Franchisee's Relationship Quality and Performance in Foodservice Franchise System. Journal of Franchise Management, 2(1), 152-172.
  24. Hunt, S. D., & Nevin, J. R.(1974). Power in a Channel of Distribution: Sources and Consequences. Journal of Marketing Research, 11(May), 186-193. https://doi.org/10.1177/002224377401100210
  25. Ivens, B. S.(2004). Industrial Seller' Relational Behavior: Relational Styles and TheirImpact on Relationship Quality. Journal of Relationship Marketing, 3(4), 27-43. https://doi.org/10.1300/J366v03n04_03
  26. Jang, S. J.(2006). The Concepts and Educational Implications of Social Capital. Korea Education & Research Information Service, Issue Report(2006).
  27. Jung, B. Y.(2014). A Study on the Effects of Suppliers Selection Factors on the SCM Performance. Doctoral Dissertation, Soongsil University.
  28. Kang, C. D., Lee, J. H., & Wang, I. W.(2010). An Empirical Study on the Recontract Decision Making Factors of Franchisee. Korea Research Academy Of Distribution and Managemen, 13(5), 265-288.
  29. Kaufman, A., Wood, C. H., & Theyel, G.(2000). Collaboration and Technology Linkages: a Strategic Supplier Typology. Strategic Management of Journal, 21(6), 649-663. https://doi.org/10.1002/(SICI)1097-0266(200006)21:6<649::AID-SMJ108>3.0.CO;2-U
  30. Khan, M.(1992). Restaurant Franchising. New York: Van Nostrand Reinhold.
  31. Kim, C. B., & Park, W. S.(2018). A Study on the Effect of Food Service Franchise's Support System on Franchisee's Trust, Financial Performance and Intention of Multi-Store Operation. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 13(5), 87-102. https://doi.org/10.16972/apjbve.13.5.201810.87
  32. Kim, G. M.(2013). A New perspective on Collaborative Innovation between Manufacturers and their Suppliers: Benefit-sharing Attributes, Conflicts, and Conflicts Resolution Techniques. The Korean Association of Small Business Studies, 35(4), 235-267.
  33. Kim, H. K.(2017). The Effects of the Benefit-Sharing Activities on Recontract Intention and Business Performance in Franchise System: Based on Dynamic Trust. Doctoral Dissertation, Seoul Venture University.
  34. Kim, H. K., & Park, H. S.(2016). The Effects of the Benefit-Sharing Activities through Dynamic Trust on Recontract Intention in Foods-Service Franchisers. Journal of Distribution Science, 14(7), 101-114. https://doi.org/10.15722/JDS.14.7.201607.101
  35. Kim, J. H.(2007). The Impact of Support and Dissensus on Economic Satisfaction, Conflict, Trust, and Commitment in the Franchise System. Journal of Channel and Retailing, 12(1), 43-55.
  36. Kim, M. J., Oh, S. J., & Noh, W. H.(2015). The Effects of Franchisor's Operation and Supervising Support on Commitment, Relationship Satisfaction and Cooperation. Journal of Distribution Research, 20(2), 115-137.
  37. Kim, Y. H.(2003). Social Network Theory. Seoul: Parkyoungsa.
  38. Lee, H. S., & Lee, S. B.(2006). The Impact of the Motivation, Support Services and Brand Equity of Franching on the Quality of LMX and on the Renewal of a Contract, The Korea Academic Society Of Tourism And Leisure, 18(2), 97-115.
  39. Lee, H. S. & Lim, J. H.(2015). Structural equation modeling with AMOS 20.0. Seoul: Jyphyunjae.
  40. Lee, J. Y.(2013). The Relationships among Environmental Dynamism, Control Mechanism, Franchisee's Performance, and Recontracting Intention: Focus on the Franchise System, anchise System: Based on Dynamic Trust. Doctoral Dissertation, Keimyung University.
  41. Lee S. H.(2014). A Study on the Relationship between Franchisee Business Performances and Franchisor Support Services, anchise System: Based on Dynamic Trust. Doctoral Dissertation, Paichai University.
  42. Lee, S. H., Kim, J. G., & Jeon, D. H.(2010). A Study on the Selection Determinants of Franchising. Korea Research Academy Of Distribution and Management, 13(5), 111-132.
  43. Lee, Y. K., Lim, H. C., & Yoon, N. S.(2005). The Impact of Instrumental and Relational Oriented Factors on Franchisees' Satisfaction with Franchisors in Food Service Industry. Journal of Hospitality and Tourism Studies, 7(3), 156-178.
  44. Lewis, C., & Lambert, D.(1991). A Model of Channel Member Performance, Dependence and Satisfaction. Journal of Retailing, 67(2), 205-224.
  45. Lewis, J. D., & Weigert, A. J.(1985). Trust as a Social Reality. Social Forces, 63(4). 967-985. https://doi.org/10.2307/2578601
  46. Lewis, J. D., & Weigert, A. J.(2012). The Social Dynamics of Trust: Theoretical and Empirical Research. Social Forces, 91(1), 25-31. https://doi.org/10.1093/sf/sos116
  47. Lewicki, R. J., McAllister, D. J., & Bies, R. J.(1998). Trust and Distrust: New Relationships and Realities. Academy of Management Review, 23(3), 438-458. https://doi.org/10.5465/amr.1998.926620
  48. Lim, H. C.(2005). (An) Study of Determinants of Franchisee Relationship Satisfaction with Franchisor in Food Service Industry, anchise System: Based on Dynamic Trust. Doctoral Dissertation, Kyonggi University.
  49. Lim, H. G.(2015). A study on the effect of control, supporting and training on recontracting intention: focusing on the moderating effect of conflict and trust, Doctoral Dissertation, Paichai University.
  50. McIvor, R., Humphreys, P., & Cadden, T.(2006). Supplier Involvement in Product Development in the Electronics Industry: A Case Study. Journal of Engineering and Technology Management, 23(4), 374-397. https://doi.org/10.1016/j.jengtecman.2006.08.006
  51. Moorman, C., Zaltman, G., & Deshpande, R.(1992). Relation-ships between Providers and Users of Market Research: The Dynamics of Trust Within and between organizations. Journal of Marketing Research, 29(3). 314-328. https://doi.org/10.1177/002224379202900303
  52. North, D. C.(1991). Institutions. Journal of Economic Perspectives, 5(1), 97-112. https://doi.org/10.1257/jep.5.1.97
  53. Oh S. J. Kang, B. H., & Kim, S. D.(2004). Alleviating and Promoting Factors on Dissolution Intention in Low Commitment Buyer-Seller Relationships. Journal of Distribution Research, 9(3), 21-47.
  54. Oh, S. J., Kim, S. D., & Oh, I. D.(2003). The Effects of Bureaucracy and Control Mechanisms Based on the Length of Relationship on Commitment and Relational Satisfaction of Franchisee. Journal of Channel and Retailing, 8(1), 21-47.
  55. Osborne, R. L.(1993). Why Entrepreneurs Fail: How to Avoid Traps. Management Decision, 31(1), 18-21. https://doi.org/10.1108/00251749310023139
  56. Park, J. Y.(1998). (A) Study Trust and Commitmen of Retailer-Supplier Relationship. Doctoral Dissertation, Yonsei University.
  57. Ring, P. S., & Van de Ven, A. H.(1992). Structuring Cooperative Relationships Between Organizations. Strategic Management Journal, 13(7), 483-498. https://doi.org/10.1002/smj.4250130702
  58. Rousseau, D. M., Sitkin, S. B., Burt, R. S., & Camerer, C. (1998). Not so Different after all: A Cross-discipline View of Trust. Academy of Management Review, 23(3), 393-404. https://doi.org/10.5465/amr.1998.926617
  59. Seo, S. Y., & Jang, J. N.(2012). A Study on the Effects of the Dine-out Franchise Headquarter's Management and Support Policies and Franchise Business Operator's Managerial Characteristics on the Bilateral Relationship and Franchise Store's Satisfaction. Journal of Distribution Research, 17(4), 81-101.
  60. Shin, C. H., Kim C. M., & Kim U. S.(1999). Empirical Study on the Influence of the Franchiser's Support Activities to the Performance, Satisfaction and Recontract Intention of the Franchisee. Korean Journal of Logistics, 7(2), 27-45.
  61. Sitkin, S. B., & Roth, N. L.(1993). Explaining the Limited Effectiveness of Legalistic Remedies for Trust/Distrust. Organization Science, 4(3), 367-392. https://doi.org/10.1287/orsc.4.3.367
  62. Stern, L. W., & El-Ansary, A. I.(1992). Marketing Channels(4th ed.). Englewood Cliffs, NJ: Prentice Hall.
  63. Williamson, O. E.(1971). The Vertical Integration of Production: Market Failure Considerations. American Economic Review, 61 (May), 112-123.
  64. Yang, I. S.(2010). The Effect of Expectation Disconfirmation in Relationship Orientation on Relationship Quality and Recontracting Intention in the Franchise Industry. Doctoral Dissertation, Sejong University,
  65. Yoon, B. S., Kim, K. H., & Jang, J. I.(2010). Benefit Sharing System, Success Factors, Trust, Relationship, Between Large And Small To Medium Enterprises. The Korean Association of Small Business Studies, 32(2), 83-113.