• Title/Summary/Keyword: Chinese franchise

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Chinese Market Entry Strategies of Korean Food Franchisor: Case of TheBorn

  • MOON, Jong Hyun;PARK, Hyunjun
    • The Journal of Economics, Marketing and Management
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    • v.9 no.5
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    • pp.27-37
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    • 2021
  • Purpose: By foreshadowing the historical background and cultural influence of Korean food and economic development in China, this paper demonstrates Chinese market entry strategies taken by TheBorn with its company history and CEO's background. Research design, data and methodology: The eclectic paradigm was utilized to analyze ownership, localization, and internalization advantages for TheBorn's first entry into the Chinese market. The research answers how TheBorn could expand its business in the early 2000s while most were skeptical about the globalization of Korean food. Results: First, possessing various restaurant franchises, food patents, and developments, and media use enabled to achieve a strong ownership advantage. Second, the Chinese market is conveniently located in South Korea. Thus, TheBorn could exercise direct management to its overseas restaurant to maintain the food quality and service. Lastly, establishing a sauce manufacturing plant and its branch company accelerated further expansions to other Chinese cities. Conclusions: Based on those success factors, TheBorn extended its business into different cities in China and emerged as a franchisor giant in the Korean restaurant franchise industry.

A Study on the Relationship between Knowledge Transfer System Management, Transaction relationship satisfaction and Franchise Performance in Chinese Franchise System (중국 프랜차이즈 지식전달시스템 경영과 거래관계 만족, 프랜차이즈 성과 관계에 관한 연구)

  • Lee, Chang Won
    • Journal of the Korea Convergence Society
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    • v.13 no.4
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    • pp.339-348
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    • 2022
  • As the Chinese franchise industry grows rapidly, efforts to find a source of competitive advantage continue to be made. Establishing a knowledge transfer system is important in the franchise industry as a source of competitive advantage. However, research in China was insufficient. This study is to explore factors and consequential factors for establishing a knowledge transfer system in the franchise industry. As a result of this study, first, it was found that not only human assets but also system assets are important for the management of knowledge transfer systems in China. Therefore, investment in system assets must proceed first. In addition, it could be seen that the management of the knowledge transfer system, human assets, and system assets affect the satisfaction of the franchise's transaction relationship and consequently improve franchise performance.

A Study on the Effects of Service Quality on Customer Satisfaction : Case of the Korean, Chinese and Foreigner (커피전문점의 서비스품질이 고객만족에 미치는 영향 연구 : 한국인, 중국인, 외국인(중국인 제외)을 대상으로)

  • Park, Sang-Kyu;Kang, Man-Su
    • Journal of the Korean Operations Research and Management Science Society
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    • v.40 no.2
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    • pp.79-93
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    • 2015
  • Today, consumer needs are diversified, continually changing and differentiated. Under the market conditions of unlimited competition to satisfy those needs, businesses focus on relationship-building with customers, as well as on quality of service. As interests in the coffee market rise, in these days, coffee culture diffusion and coffee franchise chain increase have been proceeding under the lead of the young people. This study aims to find the effects of service quality on customer (Korean, Chinese and Foreigner) satisfaction using logistic regression. The results of this study show somewhat different characteristics depending on the characteristics of country people. It is expected that this study can be very useful in regard to similar business.

The Determination of Trust in Franchisor-Franchisee Relationships in China (중국 프랜차이즈 시스템에서의 본부와 가맹점간 신뢰의 영향요인)

  • Shin, Geon-Cheol;Ma, Yaokun
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.2
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    • pp.65-88
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    • 2008
  • Since the implementation of economic reforms in 1978, the Chinese economy grows rapidly at an average annul growth rate of 9% over the post two decades. Franchising has been widely recognized as an important source of entrepreneurial activity. Trust is important in that it facilitates relational exchanges by permits partners to transcend short-run inequities or risks to concentrate on long-term profits or gains. In the relationship between the franchisors and franchisees, trust has been described as an important source of competitive advantage. However, little research has been done on the factors affecting trust in Chinese franchisor-franchisee relationships. The purpose of this study is to investigate what factors affect the trust in the franchise system in China, and to provide guidelines and insights to franchisors which enter Chinese market. In this study, according to Morgan and Hunt (1994), trust is defined as the extending when one party has confidence in an exchange partner's reliability and integrity. We offered a conceptual model of the empirical study. The model shows that the factors affecting the trust include franchisor's supports, communication, satisfaction with previous outcome and conflict. We also suggested the franchisor's supports and communication like to enhance the franchisee's satisfaction with previous outcome, and the franchisor's supports, communication and he franchisee's satisfaction with previous outcome tend to decrease conflict. Before the formal study, a pretest involving exploratory interviews with owners from three franchisees was conducted to make sure the questionnaire was relevant and clear to the respondents. The data were collected using trained interviewers to carry out personal interviews with the aid of an unidentified, muti-page, structured questionnaire. The respondents comprised of owners, managers, and owner managers of franchisee-owned food service franchises located in Beijing, China. Even though a total of 256 potential franchises were initially contacted, the finally usable sample consisted of 125 respondents. As expected, the sampling method was successful in soliciting respondents with waried personal and firm characteristics. Self-administrated questionnaires were used for all measures. And established scales were used to measure the latent constructs in this study. The measures tapped the franchisees' perceptions of the relationship with the referent franchisor. Five-point Likert-type scales ranging from "strongly disagree" (=1) to "strongly agree" (=7) were used throughout the constructs (trust, eight items; support, five items; communication, four items; satisfaction, six items; conflict, three items). The reliability measurements traditionally employed, such as the Cronbach's alpha, were used. All the reliabilities were greater than.80. The proposed measurement model was estimated using SPSS 12.0 and AMOS 5.0 analysis package. We conducted A series of exploratory factor analyses and confirmatory factor analyses to assess the convergent validity, discriminant validity, and reliability. The results indicate reasonable overall fits between the model and the observed data. The overall fit of measurement model were $X^2$= 159.699, p=0.004, d.f. = 116, GFI =.879, NFI =.898, CFI =.969, IFI =.970, TLI =.959, RMR =.058. The results demonstrated that the data reasonably fitted the model. We also examined construct reliability and reliability and average variance extracted (AVE). The construct reliability of each construct was greater than.80 and the AVE of each construct was greater than.50. According to the analysis of Structure Equation Modeling (SEM), the results of path model indicated an adequate fit of the model: $X^2$= 142.126, p = 0.044, d.f. = 115, GFI =.892, NFI =.909, CFI =.981, IFI =.981, TLI =.974, RMR =.057. As hypothesized, the results showed that it is strategically important to establish trust in a franchise system, and the franchisor's supports, communication and satisfaction with previous outcome tend to reinforce franchisee's trust. The results also showed trust seems to decrease as the experience of conflict episodes increases. And we also noticed that franchisor's supports and communication tend to enhance the franchisee's satisfaction with previous outcome, and communication tend to decrease conflict. If the trust between the franchisor and franchisee can be established in a franchise system, franchising offers many benefits and reduces many costs. To manage a mutual trust of relationship with their franchisees, franchisor's should provide support effectively to their franchisees. Effective assistant services have direct effect on franchisees' satisfaction with previous outcome and trust in franchisor. Especially, franchise sales process, orientation, and training in the start-up period are key elements for success of the franchise system. Franchisor's support is an accumulated separate satisfaction evaluation with different kind of service provided by the franchisor. And providing support definitely can improve the trustworthy image of the franchisor. In the franchise system, conflicts of interests and exertions of different power sources are very common. The experience of conflict episodes seems to negatively relate to trust. Therefore, it is important to reduce the negative side of the relationship conflicts. Communication actually plays a broader role in reducing conflict and establish mutual trust in franchisor-franchisee relationship. And effective communication between franchisors and franchisees can improve franchisees' satisfaction toward the franchise system. As the diversification of Chinese markets, both franchisors and franchisees must keep the relevant, timely, and reliable communication. And it is very important to improve the quality of communication. Satisfaction with precious outcomes seems to positively relate to trust. Franchisors and franchisees that are highly satisfied with the previous outcomes that flow from their relationship will perceive their partner as advancing their goal achievement. Therefore, it is necessary for both franchisor and their franchisees to make the welfare of partner with effort. Little literature has focused on what factors affect the trust between franchisors and their franchisees in China. This study developed the hypotheses regarding the factors affecting trust in the transaction relationship. The results of data analysis supported the hypotheses strongly. There are certain limitations in this study. First, we may point out that some other factors missed in this study could be significantly important. Second, the context of this study, food service industry, limits its potential generalizability for all franchise systems. More studies in different categories of franchise system are needed to broaden its generalizability. Third, the model was tested empirically in a sample in Beijing, more empirical tests of the proposed model in other Chinese areas are needed. Finally, the analysis in this study was solely based on the perception of franchisees and the opinions of franchisors were not included.

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The Effect of Emotional Labor on Burnout and Turnover intention of Employee in Chinese Franchise Companies: Focusing on Moderation Effect of Self-Efficacy (중국 프랜차이즈 종사원들의 감정노동이 직무탈진과 이직의도에 미치는 영향: 자기효능감의 조절효과를 중심으로)

  • Yang, Yang;Lee, Ji-Seok
    • Korea Trade Review
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    • v.42 no.5
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    • pp.71-91
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    • 2017
  • This purpose of this study is to examine how emotional intelligence has a moderating effect on the relationship between emotional labor and job burnout. To test the hypotheses, moderation analysis, mediation analysis and moderated mediation analysis were performed. Of the 1,500 self-report questionnaires distributed to franchise employees, 1,412 usable responses and utilized in the final analyses. The resoults show that emotional labor significantly affected job burnout, and job burnout completely mediated the effect of emotional labor on turnover intention. And emotional intelligence moderated the relationship between emotional labor and job burnout, suggesting that the emotional dissonance-job burnout relationship was stronger in the low emotional intelligence group than in the high emotional intelligence group. The results of this study provide some implications for Korean companies entering the Chinese franchise field. First, the mediating effects of "emotional labor → job burnout → turnover intention" and the effect of emotional labor on job burnout were mitigated by self-efficacy in Chinese franchise workers. And the self-efficacy of the employees was an important factor. The implication of this study is that self-efficacy, which is a controlling variable affecting emotional labor, job burnout, and turnover intention, is important, so Korean companies that enter the Chinese franchise employ employees with high self-efficacy and to develop and implement an employee education program that can enhance self-efficacy.

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Factors Effect on Income-Gap Between Urban and Rural Area in China (중국 도·농 간 소득격차에 영향을 미치는 요인)

  • Nan, Xue Feng;Na, Seung-hwa
    • The Korean Journal of Franchise Management
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    • v.6 no.1
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    • pp.21-41
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    • 2015
  • The purpose of the study is to review the real situations of the income-gap between urban and rural areas which is focused on as one of the biggest issues revealed in the process of Chinese economic development and to find out which factors will alleviate or deteriorate such income-gap, also to find out such factors will effect differently on the regional characteristics. To analyze it, six factors such as industrialization-ratio, urbanization-ratio, tertiary industry-ratio, the level of both governmental educational support and agricultural support, and Chinese dual-economic structure are considered as explanatory variables, and OLS regression analysis was implemented to the factor data for the period of 1986-2007 about Chinese 31 districts(castles and cities). The results of the analysis show that both industrialization factors and urbanization factors affect significantly to alleviate income-gap between urban and rural areas, and as predicted, they also shows that dual-economic structure between urban and rural areas is the most biggest factors to enlarge the above mentioned income-gap. However, in accordance to the different level of economic development in eastern, central, and western districts the study shows that such factors will affect them differently respectively. The contents are as follows; In eastern district governmental educational support factor will affect the most great influence to alleviate the income-gap, in central district industrialization factor will affect the most great influence to alleviate the gap, and western district governmental agricultural support factor will affect the most great influence to alleviate the gap. Therefore, in solving the issue of income-gap between urban and rural areas in China we recommend that it is necessary for more differential policy in considering regional characteristics than unilateral policy to Chinese whole areas.

A Study on Chinese Corporate Social Responsibility Management Mode in Economic Transition Age A Case Study of Beijing Retailing Industry (경제전환시대 중국 소매기업의 사회적 책임에 관한 연구 : 베이징(北京)의 소매기업을 중심으로)

  • Li, Dong?xin;Kang, Tae?won;Lee, Yong?Ki
    • The Korean Journal of Franchise Management
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    • v.2 no.2
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    • pp.134-149
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    • 2011
  • For decades, corporate social responsibility (CSR) has been a subject of intense debate among scholars and practitioners. Discussions have generally focused on the role of business in society and the nature of an enterprise's social responsibilities. The International Organization for Standardization (ISO) announced the implication of the ISO 26000 as the new guidance standard for social responsibility, which is built on the intellectual and practical infrastructure of ISO 9000 and ISO 14000. Although the enthusiasm for corporate social responsibility (CSR) has been echoed in the Chinese marketing literature, with the very low rate and level of CSR implementation in China's enterprises based on 2011 report of Chinese Academy of Social Sciences, this paper will give a general statement on the current status and future management mode of CSR in China.

The Market Segmentation according to Lifestyle Types of Chinese Consumers: - Focused on Shanghai Residents - (중국소비자의 라이프스타일 유형에 따른 시장세분화 - 상해를 중심으로 -)

  • Lee, Ji-Hyun
    • Journal of Fashion Business
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    • v.14 no.5
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    • pp.176-194
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    • 2010
  • According to the economy recession of U.S.A and Europe, the value of China market has been increased. Therefore the in-depth studies were essential for the companies and brands which look for new rising market. This study typed Chinese consumers by lifestyle and analyze the demographics and clothing purchasing behavior. The result of the internet survey which was carried out targeting Shanghai residents, established several consumer types of men and women respectively. In case of male consumers, established 4 groups like indifferent to advertising/brand group, seriously considering brand/health group, seriously considering leisure group, and seriously considering education group. In case of female consumers, established 3 groups like seriously considering education/food group, seriously considering housing/leisure group, and seriously considering shopping group. These groups were showed significant differences to demographics and clothing purchasing behavior. These characteristics about the groups must be reflected to marketing and merchandising strategies.

Effect of Consumption Value of Restaurant Service on Consumer Satisfaction: Focusing on Consumer Experiences at a Chinese Franchise Restaurant (외식서비스에 대한 소비가치가 소비자만족에 미치는 영향: 중국 프랜차이즈 레스토랑 소비자경험을 중심으로)

  • Sun, Wan Lu;Hwang, Hyesun;Hong, Ji Hyung
    • Human Ecology Research
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    • v.58 no.2
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    • pp.177-186
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    • 2020
  • This study examined consumer experiences on consumption value for the restaurant service and the effect of consumption value on consumer satisfaction. Consumption value was composed of four values: functional, social, emotional, and epistemic. Participants consisted of 407 consumers who live in Shanghai and have experience eating at Haidilao restaurant. The results of this study suggested that the perceived consumption value of the restaurant service varies by the socio-demographic backgrounds of consumers. Consumer satisfaction is affected by the epistemic, emotional, and functional values of the restaurant service. The effect of epistemic value on consumer satisfaction with restaurant service was the highest among all consumption values followed by emotional and functional values. There was no significant effect of social value on consumer satisfaction. This study showed that consumers pursue various values in the restaurant services which had a greater influence on consumer satisfaction than the functional value related to the primary purpose of restaurant services. As the consumer experience diversifies along with the globalized food service industry, it is necessary to improve the consumer satisfaction of restaurant services by investigating what values and experiences consumers pursue. The results of this study contribute to a consumer-oriented service design of restaurants by illuminating consumers' experiences with consumption values that influence consumers' satisfaction with the overall restaurant service.