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http://dx.doi.org/10.9708/jksci.2018.23.10.189

A Study on the Effect of Core Competence of Supervisor on the Business Performance of Franchisees and Franchisor  

Song, Ji-Hyun (Dept. of Franchise start-up management, Chosun College of Science & Technology)
Jo, Gye-Beom (Business administration, Honam University)
Publication Information
Journal of the Korea Society of Computer and Information / v.23, no.10, 2018 , pp. 189-201 More about this Journal
Abstract
This study analyzed the effect of core competence of supervisor on the satisfaction, loyalty, business performance of franchisees and business performance of franchisor. And the purpose of this study is to solve the most problematic issues in franchise business such as poor sales of franchisee, inadequate measures for activating sluggish stores, closing rate increase of franchisee, dispute between a franchisee and franchisor. The results of this study will be used as data for the success of Franchisor's business operation and for the change and development of the franchise industry. In this study, 168 CEOs and employees in the franchise industry were surveyed. Through previous research and expert interviews, we designed the core competency factors of franchise supervisors into seven areas: check, consulting, coordination, promotion, counseling, communication, and control. In order to verify the hypothesis of the research, the relationship between variables was verified by simple regression analysis and multiple regression analysis. Key result of the study are as follows. First, the core competency of the supervisor has a positive relationship with the franchisee's satisfaction. Second, the core competence of the supervisor has a positive relationship with the franchisee's loyalty. Third, franchisee's satisfaction has a positive effect on loyalty. Fourth, franchisee's satisfaction positively affects the business performance of franchisee and franchisor. Fifth, franchisee's loyalty positively affects the business performance of franchisee and franchisor.
Keywords
Franchise; Supervisor; Franchise business performance;
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