• Journal of Information Technology Services
• /
• v.9 no.4
• /
• pp.1-18
• /
• 2010

Plural governance system in which firms use vertical integration and market governance simultaneously are widely used across various marketing context. Typical examples of plural governance include franchise systems, in which firms own and operate some unit themselves while licensing the operation of some of their units to franchisees. Despite many scholars have attempted to explore the structure of plural governance over decades, there are few insights into its determinants. In this study, we examine the relationship between the proportion of outlets franchised and several franchisor's characteristics based on the perspectives of transaction cost analysis, resource scarcy theory and agency theory. Using franchisor data in Korean Franchise Disclosure Document over the 2006-2009 period, we test the effect of franchisor size, system growth rate, franchise fee, initial investment, and risk sharing on the proportion of outlets franchised. Except for the effect of system growth rate, the results of a series of multiple regression analysis supported the negative effects of franchisor size, franchise fee, initial investment and risk sharing on the proportion of outlets franchised.

• Journal of Distribution Science
• /
• v.15 no.2
• /
• pp.91-100
• /
• 2017

Purpose - Domestic franchise market has been grown steadily, reaching 50 trillion won in sales and 3,360 franchise headquarters in 2014. A franchise system is an effective business system for the franchisees to lower the failure rate due to the fact that the inexperienced entrepreneurs are supported by their headquarters through the franchisee contract. However, there are also conflicts between franchiser and franchisee behind the quantitative growth of domestic franchise industry. Therefore, it is very important to structure the causes of conflicts and to examine the effect of factors on the relationship commitment and performances. Research design, data, and methodology - In this study, the author divides the composite incompatibility between the franchise and the franchisee into goal incongruity, domain dissensus, and perceptual differences, and examines each dimension to the relationship with commitment and performances. To verify the proposed research model and test hypotheses, the author selected 200 franchise responses in food and beverage industry. The data were analyzed using SPSS 18.0 and AMOS structural equation modeling program. Results - The empirical findings provide goal incongruity and perceptual differences have a negative effect on the affective commitment, but not the calculative commitment. In addition, affective commitment and calculative commitment are found to have a positive effect on re-contractual intention and extended brand shop running intention, respectively. Affective commitment have a stronger effect on re-contractual intention than calculative commitment. Conclusions - First of all, the fact that goal incongruity and perceptual differences negatively affect the affective commitment, but it does not affect the calculative commitment. It means the relationship commitment in distribution channel are multi-dimensional concept that may be attributed to emotional or affective dimensions but may exist in terms of necessity or power-dependence. Second, the level of relationship commitment such as affective and calculative commitment to franchise headquarters positively affects the re-contractual intention and franchiser's extend brand shop running intention suggest that franchiser should encourage and support existing franchisee's commitment. Third, the fact that affective commitment has a greater effect on relationship performance than calculative commitment means to induce franchisee's affective commitment and to prevent the inconsistency between goals and perceptual differences.

• Asian Journal of Business Environment
• /
• v.1 no.1
• /
• pp.5-8
• /
• 2011

This study has been conducted by focusing franchisor's leadership style, franchisee's followership, group-efficacy and their trust in order to achieve positive integration of the franchise system. The key results of empirical examination on the moderating effect of group-efficacy and trust between leadership style proposed by Path-Goal Theory and followership has been found as follows. First, franchisors should be showed their leadership style to fit their mutual business situation. Second, Franchisors and franchisees will be found many ways to increase level of franchisee's group-efficacy. Third, Franchisors will be obtained trust from their own franchisees. These efforts will be given high level of franchisees' trust and group-efficacy. As a result, positive integration of the franchise system will both enhance their competitiveness.

• Journal of the Korea Convergence Society
• /
• v.13 no.4
• /
• pp.339-348
• /
• 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.

• The Korean Journal of Franchise Management
• /
• v.10 no.3
• /
• pp.7-12
• /
• 2019

Purpose - This study examines the status of franchises and qualifications for franchising business, examines the franchising qualifications focusing on overseas cases, and suggests policy directions for strengthening the qualifications of franchising business. In order to achieve these purposes, the study reviewed the cases of USA, China, Australia, and United Kingdom franchising business law. Literature Review - According to the Fair Trade Commission, franchise is defined as a transactional relationship in which a franchiser provides certain support and education to franchisees in order to sell their goods and services more effectively. In addition, a franchise is a legally and financially independent business of franchisers and franchisees, and according to the concept of affiliates, it is necessary to define a franchise as a product and service marketing based on close and continuous collaboration. A franchiser can be defined as a company with the ability to develop a franchise system, create sustainable value based on it, and replicate "KNOW-HOW" to sellers. Case Study - This study examined the requirements for establishing a franchiser in the United States, China, Australia, and United Kingdom. In most countries, the requirements of franchisers must be operated for at least one year, which means that education, manual production, and continuity of stores should be checked. Suggestion - Based on Korea's population density and consumption sales index, we propose a screening system that registers through 2 + 1 systems, which require two stores to be operated for more than a year, by dividing Korea's commercial rights into two and a screening system instead of simple registration. In the case of a small franchisors, at least one franchsing retail store must be operated for at least one year, which should be applied to only one brand.

• The Korean Journal of Franchise Management
• /
• v.10 no.4
• /
• pp.43-52
• /
• 2019

Purpose: As a research on the effects of the characteristics of franchise educational institution and contents on the educational transition, commitment, and recommendation intention, this study aimed to suggest the basic data that could be used for the performance of educational training of franchise headquarters, and also to suggest an empirical research helpful for the development of actual educational system and the operation of curriculum for franchise educational institutions. Research design, data, and methodology: This study selected the trainees who recently completed the training in a franchise educational institution as the samples. The survey was conducted for 20 days from October 1st to October 20th 2018, targeting total 230 people, and total 207 questionnaires were collected (Missing value 23). To verify the validity of the measurement tool used for this study, this study reviewed the factor loading of each factor by conducting the confirmatory factor analysis(CFA), and then verified the average variance extracted(AVE) and the composite construct reliability(CCR). Lastly, the structural equation model(SEM) was verified based on the research hypotheses and research model. The SPSS Win Ver. 20.0 & AMOS 20.0 were used for every analysis of this study. Results: The results of this study could be summarized as follows. First, the reputation and interaction of the characteristics of franchise educational institution had significantly positive(+) effects on the educational transition. Second, all the sub - variables of educational contents such as job relevance, education method, and instructors' professionalism had positive(+) effects on the educational transition while the educational transition had positive effects on the organizational commitment, career commitment, and job commitment. Lastly, the organizational commitment and job commitment had positive(+) effects on the recommendation intention. Thus, the trainees with higher organizational commitment and job commitment in a franchise educational institution, showed higher intention to recommend the educational institution to others. Conclusions: The results of this study imply that the franchise educational institutions could increase the actual performance of education such as educational transition, commitment, and recommendation intention by increasing interactions within educational institutions and also designing effective educational contents, so that the trainees could highly perceive the educational transition of education.

• The Korean Journal of Franchise Management
• /
• v.8 no.1
• /
• pp.31-41
• /
• 2017

Purpose - As the domestic coffee market is rapidly growing and competition is intensifying, coffee shops need to establish a marketing strategy that grasps the needs and desires of consumers in order to secure a competitive advantage in terms of survival. From this point of view, this study suggests what choice attributes consumers consider when visiting coffee shops, and analyzes the effect of customer choice attributes on franchise and private coffee shops using fsQCA. Research design, data, and methodology - In the present study, we tried to understand the effect of the combination of choice attribute on satisfaction by the type of coffee shop based on the complex system theory, while studying the existing coffee shop choice attribute focuses on the causal relationship. FsQCA is a complementary analytical method between quantitative and qualitative research, and is a method for effectively analyzing the complex combination of causal variables. Result - The results of the study are as follows. First, cleanliness was found to be the most important factor in determining coffee quality, which is the most important factor affecting customer satisfaction. Second, customers who prefer franchise coffee shops seem to be most concerned about atmosphere, menu, cleanliness and price. On the other hand, customers who prefer private coffee shops consider image the most important. Conclusions - The implications of this study are as follows. Overall, coffee shops should manage cleanliness basically regardless of the type of store, but they should manage the choice attributes differently depending on the type of coffee shop. Franchise coffee shops will be able to increase the level of store satisfaction by systematically managing the store atmosphere, menu, cleanliness, and price according to the manual using the advantages of the franchise system. On the other hand, unlike the franchise coffee shops, private coffee shops can operate autonomous stores, so customers can use various marketing mixes to enhance their store image.

• The Korean Journal of Franchise Management
• /
• v.12 no.4
• /
• pp.1-11
• /
• 2021

Purpose: The franchise system started by Singer Sewing Machine in the US is acting as a national economic growth engine in terms of job creation and economic growth. In China, the franchise system was introduced in the mid-1980s. And since joining the WTO, it has grown by 5-6% every year. However, compared to the growth rate of franchises, studies on shared growth between the chain headquarters and franchisees were insufficient. Accordingly, recent studies related to shared growth between the chain headquarters and franchisees have been active in China. The purpose of this study is to examine the knowledge transfer system between the knowledge creation, knowledge sharing, and the use of knowledge by franchise chain headquarters in China. In addition, the relationship between franchise satisfaction and performance is identified. Research design, data, and methodology: The data were collected from franchise stores in Sichuan, China, and were conducted with the help of ○○ Incubation, a Sichuan Province-certified incubator. From November 2020 to January 2021, 350 copies of the questionnaire were distributed in China, and 264 copies were returned. Of these, 44 copies with insincere answers and response errors were excluded, and 222 copies were used for analysis. The data were analyzed with SPSS 22.0 and AMOS 22.0 statistical packages. Result: The results of this study are as follows. First, knowledge creation has been shown to have a statistically significant impact on knowledge sharing and knowledge utilization. In particular, the effectiveness of knowledge creation was higher in knowledge sharing than in knowledge utilization. And we can see that knowledge sharing also has a statistically significant e ffect on knowledge utilization. Second, knowledge sharing was not significant for transaction satisfaction and business performance, and knowledge utilization was significant for transaction satisfaction and business performance. These results can be said to mean less interdependence of the Chinese franchise system. Finally, transaction satisfaction was statistically significant to business performance. The purpose of this study was to examine the importance of knowledge management to secure long-term competitive advantage for Chinese franchises. This study shows that knowledge sharing is important for long-term franchise growth. And we can see that there is a lack of knowledge sharing methods in the case of franchises in China. I n addition, it was found that the growth of Chinese franchises requires systematization of communication, information sharing measures and timing, help from chain headquarters, and mutual responsibility awareness.

• Journal of the Korea Society of Computer and Information
• /
• v.12 no.2 s.46
• /
• pp.307-314
• /
• 2007

FDS (Franchise Distributed System) which can efficiently control and manage the resources like food, liquid and services is required in many distributed system related areas like SCM (Supply Chaining Management) and ECR (Efficient Consumer Response). But, established system, such as used PC and Internet or CTI (Computer Telephony Integration) that need other equipment and expenses. And these have many problems, as voices record or recognition, not spreaded. To solve those problems, we design and implemented Web Card Checker for Franchise Distribution. Our system used card checker machine, not make additions, which can order raw materials like SCM as well as managed distributed processes.

• Journal of Distribution Science
• /
• v.9 no.2
• /
• pp.123-129
• /
• 2011

The restaurant franchise industry is one that could benefit significantly from the use of intranet technology, from its potential for improving communications between franchisors and franchisees, to providing easier inventory and ordering processes. However, there is a level of trepidation among potential users about whether the technology would improve their work performance. This study sought to examine the relationships between perceived uncertainty and perceived usefulness of intranet technology in the restaurant franchise industry. Through a review of available literature, 10 sub-dimensions of perceived uncertainty (Duncan, 1972) and six sub-dimensions of perceived usefulness (Davis, 1989) were derived. Canonical correlation analysis was used to examine the relationships between these concepts using data collected from 163 franchising restaurant managers in South Korea. Findings from the data analysis demonstrates two negative factors and one positive factor in perceived uncertainty that influence perceived usefulness, thus offering some implications of what to consider when implementing an intranet system in a restaurant franchise.