• The Korean Journal of Franchise Management
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• v.9 no.3
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• pp.31-43
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• 2018

Purpose - This study examines the role of foodservice franchisee's perceived justice(distributive, procedural, and interactional) in developing long-term orientation to franchisor and investigate the mediating role of cohesiveness and relationship satisfaction in the relationship between franchisee's perceived justice and long-term orientation to franchisor. Research design, data, and methodology - We collected data from managers and owners in foodservice franchisees located in Seoul, Korea. Among a total of 500 questionnaires, 500 questionnaires were returned. After excluding 36 invalid respondent questionnaires, 496 valid questionnaires(response rate of 99.2%) were analyzed using frequency, confirmatory factor analysis, correlations analysis, and structural equation modeling with SPSS 21 and SmartPLS 3.0. Result - The findings of this study are as follows: First, distributive justice and interactional justice had positive effects on cohesiveness, but procedural justice did not. Second, distributive justice and interactional justice had positive effects on relationship satisfaction, but procedural justice did not. Third, cohesiveness and relationship satisfaction had positive effects on franchisee's long-term orientation to franchisor. Conclusions - The implications of this study are as follows. First, this study found that procedural justice can create a high cohesiveness and identification of franchisee and also maintain a cooperative relationship with the franchisor. Second, this findings suggest that the perceived distributional and interactional justice can improve the satisfaction with the franchisor and thus positively influence the intention to maintain the relationship and the intention to recontract. Third, the results of this study indicate that the cohesiveness of franchisees can play a pivotal role to improve their satisfaction with the franchisor and pursue mutual development by continuously maintaining stable business relationship with franchisor. The findings of this study are subject to at least three limitations. First, the research subject is limited to the food service franchise shops in Seoul area, so the sample was not nationally representative of the franchise stores. Second, the perceived fairness is measured only from the point of view of the franchisee, and this study has a limitation to examine the difference between the perceived franchisee's and franchisor's justice. Third, Future research needs to identify more closely the relationships between perceived fairness and long-term orientation by gathering specific quantitative data such as the renewal rate and the business performance.

• Proceedings of the Korean DIstribution Association Conference
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• 2007.08a
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• pp.3-26
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• 2007

Recently, both scholars and marketers have asserted the importance of boundary spanning behaviors, such as external representation, being vocal advocates to outsiders of the organization's image, goods, and services, internal influence, taking individual initiative in communications to the firm and co-workers to improve service delivery by the organization, co-workers, and oneself, and service delivery, serving customers in a conscientious, responsive, flexible, and courteous manner. However, there is lack of study dealing with bourdary spanning behaviors bewteen organizational dyads, in which boundary spanning behaviors are expected to have important roles. The objectives of this paper is to investigate these important concerns with prior research by developing a theoretical model predicting how distinct buyer's boundary spanning behaviors occur. To be concrete, this paper develops a seller characteristics-based model of the attitudinal antecedents of three conceptually distinct forms of boundary spanning behaviors, and tests the hypothesized differential effects of seller characteristics on the three forms of boundary spanning behaviors, and investigates the extent to which these relationships are mediated by relationship satisfaction and organizational commitment. For the purpose of empirical testing, 420 respondents of leading automobile dealers, dining franchisees, industrial material retailers in Korea were surveyed and the analysis utilizing structural equation model indicated that communication quality, fairness, and marketing program dynamism had positive effects on buyer's boundary spanning behaviors via relationship satisfaction and organizational commitment. In addition, boundary spanning behaviors occurred more in contractural and corporate distribution channel than in conventional distribution channel.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.4 no.1
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• pp.89-111
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• 2009

Since the financial crisis in 1997, the Korean economy has a steady increase of people who tend to establish their own business by 2008. Business foundations can be divided into independent businesses and franchise businesses. This study focuses on what type of business owners among franchise enterprisers can achieve success. This is intended to reduce trial and error by drawing upon success factors in the stages of establishment, operation, and achievement based on a total sample of 350 individual business sites. The result shows that the success factors in the stage of establishment include (1) Preparation such as foundation education (2) Marketing capability (3) Appropriateness of Business Item (4) Other founder's entry barrier, conglomerate's entry regulation and (5) Head Office Support including service education, market survey education, marketing support. On the other hand, the success factors in the stage of operation include the supervisor capability, Marketing capability, Head Office Support, Customer Management Capability and Employee Satisfaction. Additionally after choosing the major factors according to each stage, multiple regression analysis was processed and interpreted. Finally, we believe that the franchise or independent business foundations can make a profit as well as increase continuous sales and customer satisfaction only with thorough and careful preparation in all stages of foundation and operation. This study is expected to contribute to those who prepare new business in franchise domain to minimize failures with deep consideration of the success factors in the franchise.

• The Korean Journal of Franchise Management
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• v.10 no.3
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• pp.25-35
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• 2019

Purpose - The major objective of this study was to investigate the effect of franchisor's (economic and philanthropic) CSR in inspiring franchisee's loyalty for the franchisor. Another aim of this investigation also was to clarify the mediating role of economic and social satisfaction in the relationship between franchisor's CSR and franchisee's loyalty. Research design, data, and methodology - This study explores the structural relationship between franchisor's CSR and franchisee's loyalty and in these relationships, the mediating role of relationship satisfaction. Data were gathered from employees(above manager) in food-service franchisee companies in Seoul, Korea. The questionnaires were distributed to managers of the franchise stores. A total of 251 questionnaires were collected. Data management and analysis were performed using SPSS 21.O and SmartPLS 3.0. Evaluation of measurement model and structural model was carried out using confirmatory factor analysis and correlation analysis. Result - The results of this study show as follows. First, economic CSR had positive effects on economic satisfaction and social satisfaction. Second, philanthropic CSR had positive effects on social satisfaction. Third, economic satisfaction and social satisfaction had positive effects on franchisee's loyalty to the franchisor. Conclusions - The important implications of this study have as follows. First, this study has found that economic CSR can create a high economic satisfaction and social satisfaction of franchisee. Second, this findings suggest that the philanthropic CSR can improve the social satisfaction of franchisee. Third, this results demonstrate, for the first time, that the economic satisfaction and social satisfaction of franchisees can play a crucial role to improve their loyalty for the franchisor and pursue mutual development by maintaining the stable business relationship with a franchisor. In this investigation there are at least three limitations. First, Because the research sample is limited to the foodservice franchisee in Seoul, it is not possible to be representativeness of the national franchisee. Second, CSR activities are mostly focused on large franchise companies. Therefore, there is a limit to the research approach. Finally, this study examined the effect of economic CSR and philanthropic CSR on the loyalty of franchisors, but in the future study, it is necessary to analyze the relationship between CSR and loyalty of franchise companies by collecting specific quantitative data such as re-contract rate and management performance of franchisees.

• The Korean Journal of Franchise Management
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• v.9 no.4
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• pp.21-31
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• 2018

Purpose - Recently, the franchise business has made remarkable progress, but many conflicts have occurred. From this perspective, this paper explains how to improve the long - term relationship between franchisor and franchisee by integrating the relationship between franchisor of franchise business and franchisee. This study aims to identify the franchisee's economic and social satisfaction and to examine their influences on calculative and affective commitment, and loyalty. At the end of this paper, theoretical and managerial implication were suggested. Research design, data, and methodology - The data were collected from owners and store managers in franchisees located in Seoul, Korea. The trained researchers contacted owners and managers of the franchise stores. The questionaires were distributed to owners and managers consented to respond. The collected questionnaires were used for the final analysis of 324 copies(243 store owners and 81 store managers), except for 26 copies of the untrustworthy response out of 350 copies. The data were analyzed with SPSS, 21.0 and SmartPls 3.0 Result - The results of the study are as follows. First, economic satisfaction effects both calculative and affective commitment, but social satisfaction does not. Second, both calculative and affective commitment have positive effects on loyalty. Third, economic satisfaction has a positive impact on loyalty, but social satisfaction does not. Conclusions - The implications of this study are following as: From the theoretical perspective, this study analyze the satisfaction and commitment of the franchisee from the multidimensional perspective by analyzing the effects of the franchisee on two dimensions of economic and social satisfaction and on calculative and affective commitment. That is, this study explains the trade-off between economica and social satisfaction, and between calculative and affective commitment. From the managerial perspective, the results of this study suggest that the economic satisfaction of the franchise headquarters felt by franchisees should be prioritized over social satisfaction. Especially at the early stage of the contract, economic satisfaction should be given priority over social satisfaction. However, since affective and calculative commitment have a significant effect on loyalty, social satisfaction factors should not be excluded by focusing on only economic ones. In other words, the franchisors should not only think of franchisees as a source of sales and profits, but should respect franchisees and maintain loyal relationships with friends.

• Journal of Distribution Science
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• v.11 no.1
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• pp.25-34
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• 2013

Purpose - This study examines the adverse press coverage that has increased in proportion to the remarkable growth of various kinds of franchise businesses in the food service industry. Today, the trust of franchisees in relation to their franchisor, and the maintenance of good relations between the two, has become a significant social issue. This study investigates relationship satisfaction and the long-term commitment between the franchisor and franchisee. Research design, data, methodology - We used a path analysis to investigate the relationship between justice and trust, trust and relationship satisfaction, justice and relationship satisfaction, trust and long-term commitment, and relationship satisfaction and long-term commitment. Structural Equation Modeling and a Sobel test were used to investigate the mediating effects of trust and relationship satisfaction. Data were collected from 237 Food Franchisees in Seoul and Gyeonggi Province in order to test the theoretical model and its hypotheses. Two research methodologies are generally used in the distribution management field. For this study, an empirical method was used. Results - A causal analysis was carried out to test if the research model has a sufficient fit index (for instance, χ² = 46.694, df = 10, p = .000, GFI = 0.946, AGFI = 0.850, RMR = 0.034, NFI = 0.966, CFI = 0.973), and the results showed that the model was sufficient, thus demonstrating the suitability of the research model. Each hypothesis had a positive influence, both on long-term commitment and relationship satisfaction. Justice with the franchisor had a positive influence on trust. Relation satisfaction cognized by franchisees was found to positively influence long-term commitment. The franchisee perception of justice in relation to the franchisor had no significant influence on long-term commitment. The study investigated the hypothesis that trust could mediate justice and long-term commitment, and that relationship satisfaction could also mediate long-term commitment Both trust and relationship satisfaction were found to be important for long-term commitment. Specifically, trust sub-factors and justice sub-factors influenced long-term commitment. Identification-based and knowledge-based trust were more important than calculus-based trust. Distributive justice was deemed more important than procedural justice; distributive justice should thus be strengthened. Conclusions - Both franchisor and franchisee were independent businesses. Evidently however, the franchisor could not ensure profit without long-term commitment from the franchisee. As for the success of the franchise business, the franchisor should carry out appropriate strategies leading to a satisfactory relationship. For example, transparency makes it possible to maintain and enhance trust and to improve relationship satisfaction. Just relations between franchisor and franchisee should make it possible to maintain and enhance the franchisee's trust. The franchisor should provide a variety of information with respect to the franchisee's business success. Finally, in order to improve the franchisee's long-term commitment, the franchisor should ensure a just approach with trust and relationship satisfaction among their strategies.

• The Korean Journal of Air & Space Law and Policy
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• v.30 no.2
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• pp.37-81
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• 2015

AirAsia QZ8501 Jet departed from Juanda International Airport in, Surabaya, Indonesia at 05:35 on Dec. 28, 2014 and was scheduled to arrive at Changi International Airport in Singapore at 08:30 the same day. The aircraft, an Airbus A320-200 crashed into the Java Sea on Dec. 28, 2014 carrying 162 passengers and crew off the coast of Indonesia's second largest city Surabaya on its way to Singapore. Indonesia's AirAsia jet carrying 162 people lost contact with ground control on Dec. 28, 2014. The aircraft's debris was found about 66 miles from the plane's last detected position. The 155 passengers and seven crew members aboard Flight QZ 8501, which vanished from radar 42 minutes after having departed Indonesia's second largest city of Surabaya bound for Singapore early Dec. 28, 2014. AirAsia QZ8501 had on board 137 adult passengers, 17 children and one infant, along with two pilots and five crew members in the aircraft, a majority of them Indonesian nationals. On board Flight QZ8501 were 155 Indonesian, three South Koreans, and one person each from Singapore, Malaysia and the UK. The Malaysia Airlines Flight 370 departed from Kuala Lumpur International Airport on March 8, 2014 at 00:41 local time and was scheduled to land at Beijing's Capital International Airport at 06:30 local time. Malaysia Airlines also marketed as China Southern Airlines Flight 748 (CZ748) through a code-share agreement, was a scheduled international passenger flight that disappeared on 8 March 2014 en route from Kuala Lumpur International Airport to Beijing's Capital International Airport (a distance of 2,743 miles: 4,414 km). The aircraft, a Boeing 777-200ER, last made contact with air traffic control less than an hour after takeoff. Operated by Malaysia Airlines (MAS), the aircraft carried 12 crew members and 227 passengers from 15 nations. There were 227 passengers, including 153 Chinese and 38 Malaysians, according to records. Nearly two-thirds of the passengers on Flight 370 were from China. On April 5, 2014 what could be the wreckage of the ill-fated Malaysia Airlines was found. What appeared to be the remnants of flight MH370 have been spotted drifting in a remote section of the Indian Ocean. Compensation for loss of life is vastly different between US. passengers and non-U.S. passengers. "If the claim is brought in the US. court, it's of significantly more value than if it's brought into any other court." Some victims and survivors of the Indonesian and Malaysia airline's air crash case would like to sue the lawsuit to the United States court in order to receive a larger compensation package for damage caused by an accident that occurred in the sea of Java sea and the Indian ocean and rather than taking it to the Indonesian or Malaysian court. Though each victim and survivor of the Indonesian and Malaysia airline's air crash case will receive an unconditional 113,100 Unit of Account (SDR) as an amount of compensation for damage from Indonesia's AirAsia and Malaysia Airlines in accordance with Article 21, 1 (absolute, strict, no-fault liability system) of the 1999 Montreal Convention. But if Indonesia AirAsia airlines and Malaysia Airlines cannot prove as to the following two points without fault based on Article 21, 2 (presumed faulty system) of the 1999 Montreal Convention, AirAsia of Indonesiaand Malaysia Airlines will be burdened the unlimited liability to the each victim and survivor of the Indonesian and Malaysia airline's air crash case such as (1) such damage was not due to the negligence or other wrongful act or omission of the air carrier or its servants or agents, or (2) such damage was solely due to the negligence or other wrongful act or omission of a third party. In this researcher's view for the aforementioned reasons, and under the laws of China, Indonesia, Malaysia and Korea the Chinese, Indonesian, Malaysia and Korean, some victims and survivors of the crash of the two flights are entitled to receive possibly from more than 113,100 SDR to 5 million US$ from the two airlines or from the Aviation Insurance Company based on decision of the American court. It could also be argued that it is reasonable and necessary to revise the clause referring to bodily injury to a clause mentioning personal injury based on Article 17 of the 1999 Montreal Convention so as to be included the mental injury and condolence in the near future.