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http://dx.doi.org/10.5762/KAIS.2012.13.1.178

A study on franchise relationship about an influence factors and franchisee compliance -Focused on convenience store franchisee-  

Chung, Dae-Yong (Department of Venture and Entrepreneurship, Soongsil University)
Kim, Choon-Kwang (School of Industrial and Entrepreneurial Management, Chung-Ang University)
Eom, Tae-Yeung (Nuri Maru)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.13, no.1, 2012 , pp. 178-184 More about this Journal
Abstract
This research is an empirical research that surveys the influence factors of franchisee's compliance and precedence, which have a direct effect on the success of franchisor, from the view of relation exchange theory. The results herein show that the trust of franchisees towards franchisor has a complete mediating effect between conflict and compliance. This means that in a franchise system, it is important to build trust in order to successfully manage franchisees. Trust built between franchisor and the franchisee has a dominating effect based on relationship even on domains not specified on the contract. Also, it is very important in that it decreases frequently occurring conflicts caused by disagreement of interests and unfair relationship of power, and effectuates compliance of franchisees. Such result is a meaningful theoretical and practical contribution in that it has for the first time domestically investigated the mechanism of relationship leading from conflict and trust to compliance of franchisees by methods of theoretical discussion and empirical analysis.
Keywords
Franchisor; Franchisee; Conflicts; Trust; Compliance; Relation Exchange Theory;
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