• The Korean Journal of Franchise Management
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• v.14 no.2
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• pp.19-30
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• 2023

Purpose: Corporate management is under pressure to contribute to social values beyond profit-seeking, and interest in ESG (Environment, Social, Governance) is increasing worldwide. In the recent global climate change crisis and the COVID-19 pandemic, the importance of non-financial values such as ESG is increasing. Therefore, the purpose of this study is to prepare a strategy for future ESG management activities by analyzing the impact of it on corporate performance by food companies. Research design, data and methodology: ESG-related research trends, ESG activities, and corporate performance were analyzed. After that, a regression analysis was conducted to identify the relationship between ESG evaluation grade and corporate performance. Result: ESG management activities measured by ESG scores did not significantly affect the return on assets, one of the variables of corporate performance. However, as a result of setting the return on equity as a dependent variable, ESG management activities have a nonlinear relationship with corporate performance, and ESG management activities have a positive effect on corporate performance when investment in ESG management activities is reasonable. Conclusions: These results show that food companies should engage in an appropriate level of ESG management activities to improve corporate performance.

• Journal of Distribution Science
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• v.19 no.1
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• pp.17-26
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• 2021

Purpose: This research is to investigate the effect of the franchisee's basic psychological needs satisfaction on its business performance. Moreover, within the relationship between the franchisee's basic psychological needs satisfaction and its performance, the current study examined the mediating effect of work engagement and the moderating effect of the franchisor's support. Research design, data and methodology: 367 survey data were collected and analyzed using SPSS 22 and AMOS 22. For the assessment of goodness of fit of the models, fit indexes such as TLI, CFI, RMSEA were employed. Results: The results of the study are as follows: first, the franchisee's basic psychological needs satisfaction is positively related to performance; second, the franchisee's basic psychological needs satisfaction is positively related to work engagement; third, the franchisee's work engagement is positively related to performance; fourth, it is uncovered that the franchisee's work engagement mediates the relationship between basic psychological needs satisfaction and business performance; fifth, the moderating effect of the franchisor's support was insignificant. Conclusion: This study would like to contribute to the field of franchise performance, by re-assessing the significance of the individual's characteristics (of the franchisee) which has been ignored thus far. Furthermore, the limitations of the study and future research directions were discussed.

• Journal of Distribution Research
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• v.13 no.3
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• pp.101-125
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• 2008

This research suggests an ideal role between franchisee and franchisee for survival and development of the Korean franchise business by identifying causal relationships between entrepreneurship of franchisees and their business performance. Besides, when considering multi-dimensional features of a franchise system, this study aims to show that the market orientation of the franchisee and the relationship commitment between franchisee and franchisee will play an important mediating role to achieve a better business performance. Thus specific causal relationships among sub-dimensional constructs of entrepreneurship and market orientations were investigated. They are innovativeness, risk-taking propensity, pro-activeness, information creation, intelligence generation, intelligence dissemination, response design, response implementation. The results demonstrate that pro-activeness of franchisee plays a crucial role for franchisee's business performance. It was noted that franchisor's market orientation and innovativeness is also important for high market orientation of franchisor. The higher the market orientation of franchisor was, the higher relationship commitment of franchisee was formed. By identifying the mediation effect of relationship commitment and market orientation of franchisor, this paper showed that relationship commitment positively affect the improvement of franchisee's business performance. Above all, it should be noted that this research empirically identified the relationship between franchisee's entrepreneurship and business performance that most of the previous researchers have ignored. Furthermore, the analysis was conducted at sub-dimensional construct level. It is expected that empirical results from this study will be able to provide a meaningful framework and theoretical basis for future research on franchise, entrepreneurship and market orientation.

• The Korean Journal of Franchise Management
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• v.5 no.1
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• pp.109-141
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• 2014

Recently, the interests of consumers in firms that implement the social commitment activities have been consistently growing. Consumers' evaluation about the level of corporate social responsibility(CSR) can affect the overall image for product or service of corporation. This recent changes make a marketer to have to consider direct and indirect effects of CSR efforts on the market performance. This phenomena is also found in the franchise industry. The importance of CSR is more critical rather than other industries since each franchisor should care franchisees as well as end users. Franchisors' execution of CSR could increase satisfaction of end user through consonance of activities provided by franchisees. However most franchisor stay in focusing on the traditional CSR activities. Therefore, this study aims to enhance the understanding the CSR in franchise and provide the phase model of CSR development for general firms including franchise. After diagnosis the firms with the proposed model, the study found many franchisors have huge gap between current CSR activities and higher level of CSR policies that franchisor have to make facing. This study call franchisors to reduce this gap by implementing new CSR efforts. If they answer for this calling, franchise industry could leap for making the best practice of creating shared value with other stakeholders.

• Journal of Distribution Science
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• v.13 no.1
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• pp.35-46
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• 2015

Purpose - This paper attempted to investigate the relationships among the perception of job insecurity and organizational effectiveness, and it examines these relationships while considering the moderating effect of trust in the manager and self-efficacy. Job insecurity is an independent variable, organizational effectiveness aspects (job satisfaction, organizational commitment, and turnover intention) are dependent variables, and trust and self-efficacy are moderators. Research design, data, and methodology - Regression analysis was used to verify the effects. The measurement items were already deemed as reliable and valid in the previous study, but for this purpose, some modifications were made. To examine the model, this study relied on the samples chosen from Korean employees in the six franchise business firms. The survey was conducted on 288 workers. Each question is based on a 5-point Likert type scale. The data were analyzed using SPSS 18.0. Results - The results of the study are summarized as follows. First, job insecurity has an influence on organizational effectiveness aspects (negatively on job satisfaction, negatively on organizational commitment, and positively on turnover intention). Second, analyzing the moderating effect of trust, trust in manager is mediated between job insecurity and organizational effectiveness aspects (on organizational commitment and on turnover intention). However, employees' trust in manager had no significant moderating effect on the job insecurity-job satisfaction relationship. Third, self-efficacy is mediated between job insecurity and organizational effectiveness aspects (on job satisfaction, on organizational commitment, and on turnover intention). Conclusions - First, it is necessary to be aware of the seriousness of employees' job insecurity in franchise firms, which have played a pivotal role in national economic growth, and to create a detailed plan for reducing insecurity and actively implementing it. To this end, the franchise companies should implement efficiency efforts such as obtaining an appropriate capacity of equipped personnel and a training program. Second, there are moderating effects of self-efficacy and trust in the relationship between job insecurity and organizational effectiveness. Depending on business conditions, stability and instability can only be experienced in the organizations of franchise companies. This can give rise to instability in employment. Therefore, it is necessary to develop and utilize a system that can be minimized with a change in the new awareness of employment instability. After all, a good leader (manager) must accumulate personal trust and build up a core competence that is necessary to become competent in the field himself. Even if you lack the material resources to improve performance, if the leader with the core competencies (e.g., technical/management /organization/marketing/design) can gain the trust of the supervisor, you can get a good organizational performance. Therefore, you should foster a healthy organizational culture through education such as leadership training and employee training to be built on trust between the leaders and the employees. In addition, you need to focus on HRD&M training in order to increase the self-efficacy of the supervisor.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.6 no.1
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• pp.39-58
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• 2011

The Study on the Influence of Selection factors of Franchise System and Franchisee's Satisfaction in the Food Service Franchise Industry. Franchisors can use franchisee selection criteria as a key input control to enhance the outcomes of their future franchisees. A business technique based on long term contractual arrangements between two legally independent businesses and relying on certain inputs from both parties for success and survival has significant potential for conflict. Furthermore,with many independent small businesses falling to reach their full potential, it is important to evaluate franchising as an alternative system of business management and to identify the characteristics of franchisor and franchisees which contribute to the satisfactory operation of a franchised small business. Thus, the objective of this study was to investigate a possible relationship between franchisee satisfaction and certain characteristics of the franchisor and of the franchisees themselves. In accordance with results of a hypothesis verification, a Selection factors of Franchise affects positively a Franchisee's Business Satisfaction.

• 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.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.11 no.9
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• pp.3210-3222
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• 2010

Franchise Industry has a big portion in national economy, and contributes to protecting self-employments and making jobs. One of good way to increase the success of franchise business is operating some franchisor's company owned outlets before franchising. The purpose of this research is to understand the effects of the company owned outlets on franchisor's current performance. According to the result, the operation term, scale, and location of company owned outlet increase the legitimacy of franchisor. The operation term, and scale of company owned outlet increase the efficiency of franchisor, And both legitimacy and efficiency increase of franchisor's current achievement.

• Journal of the Korean Society of Food Culture
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• v.28 no.2
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• pp.195-203
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• 2013

The aim of this study was to provide strategic implications for the coffee market in which competition got severer through IPA analysis based on the attributes of selection of a specialized franchise coffee shop. The results of a positive analysis conducted with undergraduates in their twenties were as follows: According to the evaluation of the importance of the attributes of selection of a specialized coffee shop, the most important were 'cleanliness and hygienic facilities inside the shop (6.09)' and 'taste and quality of the menu (coffee) (6.09)'. According to the performance analysis, those showing the highest performance were 'brand image (4.92)' and 'cleanliness and hygienic facilities inside the shop (4.92)'. According to the result of IPA analysis, what customers regarded as being the most important were 'taste and quality of the menu (coffee)', 'kindness of the staff', and 'cleanliness and hygienic facilities inside the shop', and, in fact, they showed great performances as well. However, 'price of the menu (coffee)' was regarded as being important but did not indicate a great performance; therefore, they showed dissatisfaction with it. Although they did not think 'environment around the shop', 'brand image', 'brand recognition' or 'interior size and scale of the shop' were important, the attributes did not appear to show great performances. Therefore, we need constant maintenance strate gies regarding the fact that consumers are considered to be very important for evaluation, and should make efforts to change the price in advance.

• Journal of Distribution Science
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• v.12 no.2
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• pp.39-47
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• 2014

Purpose - The ultimate goal of a franchise system comes from its win-win strategy. Agency theory uses goal incongruity to examine complex contracting problems between buyers and suppliers. Goal incongruity within a contractual relationship can be defined as the agent's desire not to cooperate. It is the degree to which the contractual terms do not satisfy the agent's goals. The greater the goal incongruity between the agent and the contract, the more likely it is that the agent will meet the terms of the contract. Thus, goal incongruity between buyers and suppliers has close relationships with both behavioral and financial performance. This study tries to examine these relationships in the franchise context using a model including related variables, such as regulatory foci, financial performance, and opportunism, to explain the reasons that not all franchisees perform their best. In particular, the study examines the effects of goal incongruity on regulatory focus, and the effects of regulatory focus on performance and opportunism. In short, the objective is to determine goal incongruity's effect on regulatory foci, and the effect of regulatory focus on performance and opportunism. Research design, data, and methodology - This study used data collected from the franchisee managers of 104 franchisors in South Korea. The franchisors include more than 10 franchisees, the majority of whom have been in business for more than five years. The study also surveyed 104 franchisees, matched with their franchisors for the sake of a dyadic approach. The study used regression analysis to test the hypotheses. Results - H1 and H2 predicted that goal incongruity would decrease promotion focus and increase prevention focus. Supporting H1, the result indicates goal incongruity had a positive effect on promotion focus. However, H2 was not supported. Goal incongruity had no significant effect on prevention focus (β = -.375, t = -4.331 and β = -.145, t = -1.950, respectively). H3 and H4 predicted that promotion focus would increase financial performance and decrease opportunism. Supporting these hypotheses, the results indicate that promotion focus had a positive effect on financial performance and a negative effect on opportunism (β = .771, t = 7.899 and β = -.765, t = -6.778, respectively). H5 and H6 predicted that prevention focus would decrease financial performance and increase opportunism. However, the results do not support these hypotheses. The results indicate that prevention focus had no effects on opportunism or financial performance (β = -.130, t = -1.070 and β = .090, t = .641, respectively). Overall, the evidence generally supported the hypotheses. Conclusion - Goal incongruity between a franchisor and a franchisee increases the franchisee's financial performance and opportunism, and the relationship is mediated by promotion focus. Interestingly, however, prevention focus has no mediating effect between goal incongruity and performance. Even though no significant relation exists between goal incongruity and prevention focus, the results have two implications. First, decreasing goal incongruity can improve financial performance and suppress franchisee opportunism. Second, the relationship between goal incongruity and performance affects promotion-focused franchisees.