• The Korean Journal of Franchise Management
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• v.7 no.2
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• pp.37-45
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• 2016

Purpose - This study aims to examine the impact of leadership on organizational trust and innovation performance, and to identify whether organizational trust plays a mediating role in the relationship between leadership and innovation performance. Also, this study attempts to find out how to improve organizational efficiency and effectiveness based on leadership-based or trust-based strategies. And, this research proposed that organizational trust plays a core mediating role in the relationship between transactional and transformational leadership and innovation performance. Research design, data, and methodology - In order to test the hypotheses of this study, the survey was conducted towards franchise coffee shop employees between November 7 and 18, 2016. We contacted top executives of coffee shop franchise headquarters and explained the purpose of this study. Among 150 questionnaires distributed, 123 were collected. Of these collected questionnaires, 102 questionnaires were coded and analyzed for further analysis. In order to test the unidimensionality and reliability of the factors, factor analysis and reliability test were performed using SPSS/PC+ 22.0. And, the hypotheses were tested using hierarchical mediated regression analysis. Result - The results are as follows. First, transactional leadership, and intellectual stimulation, motivation of transformational leadership had significant impacts on organizational trust. Second, organizational trust, transactional leadership, and influence of transformational leadership had significant impacts on innovation performance. Third, the mediating test of organizational trust showed that transactional leadership plays a partial mediator, and intellectual of transformational leadership plays a full mediator in the relationship between leadership and innovation performance. Conclusions - The implications of this study are as follows. First, the top management should provide their organizational members incentives or rewards based on their performance. Second, top management should identify and express a clear vision and desirable organizational goals for the future, present an idealized vision, and communicate to organizational members that the vision is achievable, also have organizational members to think creatively and find optimal solutions to difficult problems. In sum, this study revealed the important role of leadership in embedding organizational trust in and improving innovation performance of coffee shop employees and the mediating role of organizational trust in the influence of leadership on innovation performance.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.14 no.5
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• pp.25-42
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• 2019

The purpose of this study is to analyze the effect of internal competence of small business on the competitive advantage and start-up intention. Through this, which key competence of small business can be proposed for market growth against of large companies that have a great capital power. Also, implications for development direction can be suggested. For this purpose, technology capability, financing capability, marketing capability, and product/service differentiation capability factors were set as independent variables, as well as competitive advantage as a mediating factor, and startup intention to be franchiser as a dependent variable. For the analysis, a structured questionnaires survey was conducted to 276 domestic small business in capital area. The main results are as follows. First, in relation to the internal competency and the competitive advantage of small businesses, it was found that technological capabilities, financing capabilities and product (service) differentiation have a positive effect on competitive advantage. Second, the relationship between the internal capacity of a small entity and startup intention to commercialize a franchiser business indicates that its financing capacity and marketing capabilities have a positive effect on startup intention to commercialize the business, and that competitive advantage has a significant effect on startup intention to commercialize the franchise. Third, competitive advantage was found to mediate the relationship between internal competency and startup intention. Finally, it was shown that the internal capacity of a small business has a regulating effect in relation to its financing capacity, marketing capabilities and startup intention to commercialize the franchise, and that it also had a regulating effect in relation to its relationship with its competitive advantage and franchise suitability. Based on the above results, if small business can take competitive advantage in the market, they also consider startup intention to commercialize a franchiser, in addition, it is expected that one suggestion can be made from an internal capacity perspective required more emphasis on operations and management as an alternative to expanding small businesses' business, including market access measures that can be linked to internal capacity factors of small businesses.

• Culinary science and hospitality research
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• v.19 no.1
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• pp.57-69
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• 2013

This study analyzed the effects of the relational norm factor of food service franchising on the intention to remain, in view of the importance of relational norms, as antecedent variables, to franchisees' perceived fairness to enhance the competitiveness by formation of long-term relationship between interested parties to food service franchising, the franchiser and the franchisee. According to a questionnaire survey, more than 100 franchisees that recorded three business years in Seoul, Incheon and Gyeonggi area were selected for convenience sampling. Then, among them, 515 effective samples were analyzed. For statistical data, detailed types of analysis were performed by using AMOS 17.0, such as factor analysis, exploratory factor analysis, confirmatory analysis and frequency analysis. The purpose of this study was to examine the relationship between the franchiser and the franchisee by arranging relational norm factors for the relationship to be suitable for the current situation of Korea, instead of Western-style theory-based relationship marketing, and by understanding a connection between perceived fairness and management achievement-related variables, and to make a conceptual framework for building a positive relationship between the franchiser and the franchise in future food service franchising industry. Moreover, it aimed to increase franchisee satisfaction and results including re-contract according to perceived positive relationship value on the franchiser and to make contribution to find and show the proper direction for development of the Korean-style food service franchising system.

• The Korean Journal of Franchise Management
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• v.15 no.2
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• pp.17-37
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• 2024

Purpose: This study used the SOR model to analyze the impact of live commerce's modified livecommercescape factors (interactivity, presence, playfulness, convenience, and broadcaster characteristics) on repurchase intention through usefulness and flow. Research design, data, and methodology: 1,149 respondents with live commerce purchase experience were collected through an online survey, and the collected data was analyzed with SPSS 25.0 and SmartPLS 4.0 statistical package programs. Results: Presence and playfulness were found to have the highest influence on flow and usefulness. In particular, Presence and broadcaster characteristics were found to be the factors that had the greatest influence on flow. Playfulness was found to have the greatest impact on usefulness, and two-way communication was found to have the lowest influence among the five servicescape factors. Broadcaster characteristics also affect flow but not usefulness, and convenience only affects usefulness and does not affect flow. Flow shows results that affect usefulness and repurchase intention. Conclusion: Our findings provide a richer understanding of causal relationships within the SOR framework, demonstrating that broadcaster characteristics, two-way communication, presence, and playfulness can influence flow, perceived usefulness, and, consequently, consumer purchasing behavior.

• Journal of Distribution Research
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• v.15 no.3
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• pp.1-34
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• 2010

Introduction The purpose of this research is to develop overall model which involves the effect of ongoing support services by franchisor on franchisee's relationship quality(trust, satisfaction, and commitment) and business performance(financial and non-financial performance), and to investigate the relationships among trust, satisfaction, commitment, financial and non-financial performance. This study also suggests franchise business or franchise system should be based on long-term orientation between franchisor and franchisee rather than short-term orientation, or transactional relationship, and proposes the most effective way of providing on-going support services by franchisor with franchisee thru symbiotic relationship among franchisor and franchisee Research Model and Hypothesis The research model as Figure 1 shows the variables on-going support services which affect the relationship quality between franchisor and franchisee such as trust, satisfaction, and commitment, and also analyze the effects of relationship quality on business performance including financial and non-financial performance We established 12 hypotheses to test as follows; Relationship between on-going support services and trust H1: On-going support services factors (product category & price, logistics service, promotion, information providing & problem solving capability, supervisor's support, and education & training support) have positive effect on franchisee's trust. Relationship between on-going support services and satisfaction H2: On-going support services factors (product category & price, logistics service, promotion, information providing & problem solving capability, supervisor's support, and education & training support) have positive effect on franchisee's satisfaction. Relationship between on-going support services and commitment H3: On-going support services factors (product category & price, logistics service, promotion, information providing & problem solving capability, supervisor's support, and education & training support) have positive effect on franchisee's commitment. Relationship among relationship quality: trust, satisfaction, and commitment H4: Franchisee's trust has positive effect on franchisee's satisfaction. H5: Franchisee's trust has positive effect on franchisee's commitment. H6: Franchisee's satisfaction has positive effect on franchisee's commitment. Relationship between relationship quality and business performance H7: Franchisee's trust has positive effect on franchisee's financial performance. H8: Franchisee's trust has positive effect on franchisee's non-financial performance. H9: Franchisee's satisfaction has positive effect on franchisee's financial performance. H10: Franchisee's satisfaction has positive effect on franchisee's non-financial performance. H11: Franchisee's commitment has positive effect on franchisee's financial performance. H12: Franchisee's commitment has positive effect on franchisee's non-financial performance. Method The on-going support services were defined as an organized system of continuous supporting services by franchisor for the purpose of satisfying the expectation of franchisee based on long-term orientation and classified into six constructs such as product category & price, logistics service, promotion, providing information & problem solving capability, supervisor's support, and education & training support. The six constructs were measured agreement using a 7-point Likert-type scale (1 = strongly disagree to 7 = strongly agree)as follows. The product category & price was measured by four items: menu variety, price of food material provided by franchisor, and support for developing new menu. The logistics service was measured by six items: distribution system of franchisor, return policy for provided food materials, timeliness, inventory control level of franchisor, accuracy of order, and flexibility of emergency order. The promotion was measured by five items: differentiated promotion activities, brand image of franchisor, promotion effect such as customer increase, long-term plan of promotion, and micro-marketing concept in promotion. The providing information & problem solving capability was measured by information providing of new products, information of competitors, information of cost reduction, and efforts for solving problems in franchisee's operations. The supervisor's support was measured by supervisor operations, frequency of visiting franchisee, support by data analysis, processing the suggestions by franchisee, diagnosis and solutions for the franchisee's operations, and support for increasing sales in franchisee. Finally, the of education & training support was measured by recipe training by specialist, service training for store people, systemized training program, and tax & human resources support services. Analysis and results The data were analyzed using Amos. Figure 2 and Table 1 present the result of the structural equation model. Implications The results of this research are as follows: Firstly, the factors of product category, information providing and problem solving capacity influence only franchisee's satisfaction and commitment. Secondly, logistic services and supervising factors influence only trust and satisfaction. Thirdly, continuing education and training factors influence only franchisee's trust and commitment. Fourthly, sales promotion factor influences all the relationship quality representing trust, satisfaction, and commitment. Fifthly, regarding relationship among relationship quality, trust positively influences satisfaction, however, does not directly influence commitment, but satisfaction positively affects commitment. Therefore, satisfaction plays a mediating role between trust and commitment. Sixthly, trust positively influence only financial performance, and satisfaction and commitment influence positively both financial and non-financial performance.

• The Korean Journal of Franchise Management
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• v.10 no.2
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• pp.19-32
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• 2019

Purpose - This paper aims to investigate the mediating effects of relationship fairness factors between franchisor's support services and performance(re-contract intention) in food service franchise. More specifically, fairness was measured into distributive, procedure, interaction, and information, franchisor's support service was divided into pre-start support services (initial support services) and post-start support services (continued support services), and performance (re-contract intent) was measured using 3 items such as re-contract, contract extension, and recommendation. Research design, data, and methodology - The population for the survey is the head of franchises in the metropolitan area (Seoul/Gyeonggi), which operates a restaurant franchise, and samples included a wide range of overseas/domestic brands and regions. The survey was conducted from August 1 to September 30, 2018 through the survey agency. The survey was conducted together with a telephone interview and a direct visit by the investigator. A total of 205 questionnaires were collected and retrieved, 4 questionaires containing missing information were excluded and 201 responses were used for analysis. Results - The results shows that franchisor's initial support services have significant positive effects on procedural, interpersonal, and informational relationship fairness, and continuous support services have significant positive effects on distributive, procedural, interpersonal, and informational relationship fairness. This study also shows that informational and procedural fairness have significant positive effects on performance(re-contract intention). Finally, continuous services a significant positive effect on performance(re-contract intention). Conclusions - The results show that franchisor make a manual, and should improve fairness through regular investigation whether support services was executed as promised in the manual after franchisee operation. In addition, information fairness and procedural fairness have been shown to increase performance(re-contract intention). These results mean that the franchisor's headquarters should provide product and service support for the merchant in accordance with the manual and management policy to reduce asymmetry in information and improve procedural fairness to enhance performance(re-contract intention).

• The Korean Journal of Franchise Management
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• v.8 no.3
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• pp.7-16
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• 2017

Purpose - Recently, as the franchise market has grown rapidly and competition has intensified, the creation of competitive advantage by companies has become important as a corporate survival strategy. Based on previous studies, this study proposed a theoretical framework for the structural relationship between psychological ownership (organization and job), job performance, and customer orientation. Research design, data, and methodology - This research examines the structural relationship between psychological ownership, job performance, and customer orientation in terms of employees. More specifically, in this model, psychological ownership consists of two sub-dimensions of organization and function. Research models and hypotheses have been developed for this purpose. A total of 409 respondents responded via surveys. 2 out of 409 respondents have been removed and a total of 407 were used for this study. The data were analyzed using frequency analysis, confirmatory factor analysis, correlation analysis, and structural equation modeling with SPSS 21.0 and Amos 21.0 statistical program. Result - The results of the study are as follows. First, psychological ownership (organization and job) has a statistically significant positive effect on job performance. Second, psychological ownership of the job has a statistically significant positive effect on customer orientation. On the other hand, psychological ownership did not have a significant effect on customer orientation. Conclusions - The implications of this study are following as: From the theoretical point of view, this study distinguishes the psychological ownership of employees of a franchise corporate into two dimensions, organization and job, rather than a single dimension. Based on this, we examined the effect of psychological proprieties on job performance and customer orientation. This study also provides several implications. In a fiercely competitive franchise market, it is very important to analyze your employees to gain a competitive advantage over other competitors. It is meaningful to study the employees who work in the franchise. In addition, psychological ownership is an important variable that enhances job performance and leads to customer orientation, so the company needs to pay attention. Therefore, it needs to develop an internal marketing strategy that promotes psychological ownership.

• The Korean Journal of Franchise Management
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• v.8 no.1
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• pp.19-30
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• 2017

Purpose - As environmental issues, along with the growth of companies, are accelerating, social interests in eco-friendly management that requires corporate social role and responsibility are increasing. The eco-friendly management activity reflects the changes in environmental awareness of consumers. Therefore, the eco-friendly images of companies influence consumers, and the establishing of eco-friendly management strategy has become a very important factor in the greenmarket. In this regard, this study examined the impacts of green leadership and environmental attractiveness on strategic environmental marketing, tactical environmental marketing, and environmental performance towards the employees of franchisee headquarters. Research design, data, and methodology - The survey was conducted towards the 800 headquarters among 2,600 brands that are registered with the Fair Trade Commission of Korea by mail. Among the total of 162 questionnaires collected, 7 respondents were excluded for their incompletion, and thus 155 responses were used in this study. The data were analyzed with SPSS 21.0 and SmartPLS 3.0. Frequency analysis was carried out to understand the general characteristics of the subjects, and confirmatory factor analysis to measure the reliability and validity of the measurement. Correlation analysis was conducted to identify the correlation between constructs, and structural equation modeling to examine the structural relationships among the constructs. Result and Conclusions - First, green leadership had a positive impact on strategic environmental marketing, tactical environmental marketing, and environmental performance. Second, environmental attractiveness had a positive effect on strategic environmental marketing, tactical environmental marketing, and environmental performance. Finally, strategic environmental marketing and tactical environmental marketing had positive impacts on environmental performance. This study can be recognized for proposing new perspectives on eco-friendly management strategy for firms to be able to win competitive superiority and performance by embedding awareness of the importance of environmental market and suggesting practical implications on understanding of environmental attractiveness, strategies and tactics of environmental management, and environmental performance in the franchise industry.

• The Korean Journal of Franchise Management
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• v.9 no.4
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• pp.33-43
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• 2018

Purpose - In hotel industry, quality of leader-member exchange(LMX) relationship is very critical, because it impacts on the employee's work attitude and behaviors. Thus, this research examines the effect of LMX on employee loyalty in the context of hotel business and identifies mediating roles of work stressors, work role performance in the relationship between LMX and employee loyalty. This research suggests the guidelines for how hotel leaders should manage their employees and build employee loyalty that improve management and business performance. Research design, data, and methodology - This study tests the structural relationship between LMX, work stressors, work role performance, and employee loyalty. Work role performance divide into three sub-dimensions such as individual task proficiency, individual task adaptivity, and individual task proactivity. In order to examine the purposes of this research, research model and hypotheses were developed. All constructs were measured with multiple items developed and tested in the previous studies. The data were collected from 113 franchise hotel employees and were analyzed using SPSS 22.0 and SmartPLS 3 program. Result - The findings of this research are as follows. First, leader-member exchange(LMX) have significant positive impacts on work stressors, work role performance, and employee loyalty. Second, work stressors have significant negative impacts on work role performance and employee loyalty. Third, work role performance has significant positive impact on employee loyalty. Conclusions - The outcomes of this research indicate that hotel leaders should focus on the dyadic relationship with their employees how to improve employee productivity through LMX relationship. In turn, the quality of this relationship influences employees's work attitudes and behaviors. As a result of increasing job demands in hotel business which relies heavily on human resources, the hotel leader must find ways to prevent or reduce stressors and associated strains. If hotel employees perceive the high quality of LMX relationship, they improve their work role performance which influences loyalty. Therefore, the hotel leaders should develop monetary or non-monetary reward system for the employees and, make an efforts to have unique social exchange relationships with employees.

• The Korean Journal of Franchise Management
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• v.7 no.2
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• pp.5-14
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• 2016

Purpose - Competitive industry structure and recent economic depression challenge a survival of Korean small- and medium-sized food franchising companies (SMFCs), albeit the explosive growth of the Korean food service industry for last few decades. Against this backdrop, it examines how these SMFCs overcome liabilities of smallness and resource scarcity to strengthen competitive advantage in the market. To tackle this, in this article we focus on corporate entrepreneurship and human resources as a knowledge-based asset for these SMFCs. Furthermore, the ratio of employee turnover is high in SMFCs. We view that such brain-drain may result in poor performance of the Korean SMFCs. As such, we pay attention to the role of organizational commitment to an organization as a solution for enhancing individual-level employees' loyalty toward their organization. Research design, data, and methodology - Our research question is to what extent corporate entrepreneurship (i.e., innovative organizational culture, organizational autonomy, and administrative innovation) affects an individual-level attitude toward the organization and, in turn, employee creativity and satisfaction in the Korean SMFCs context. We collected data from employees in SMFCs for three months. A total of 126 valid questionnaires were collected, and analyzed the data using partial least squares path modeling. Results - The reliable and valid measurement model feed into testing the structural model. Our findings suggest that innovative organizational culture and organizational autonomy positively affect employee commitment. Particularly, organizational autonomy has a greater effect than innovative culture on employee commitment. However, the relationship between administrative innovation and employee commitment is not significant. We also find that employee commitment positively affects both employee creativity and satisfaction. Conclusions - Our contribution to the existing franchising business and management literature is twofold. First, the conceptual model includes three antecedents in the organizational entrepreneurship dimension to organizational commitment. Second, we conceptualize organizational commitment as employee commitment, and validate its impact on employee creativity and job satisfaction at an individual performance level. Overall, this article suggests that it is critically important for the Korean SMFCs to develop corporate entrepreneurship in order to facilitate employees' positive attitudes toward their organizations.