• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.15 no.4
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• pp.245-261
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• 2020

The aim of this study is to investigate the correlation between the support activities provided by the franchiser and how they affect the intention of the contract renewal and business performances made by franchisees, developing dynamic trust between these transactional partners. Various supportive activities between franchiser and franchisees were divided into financial and non-financial activities and dynamic trust into Transitional-based trust, Calculative-based trust, Relational-based trust, and Balanced-based trust. These trust types, which are variable and adjustable based on the opportunistic behaviors of business parties, were applied to define the impact of the support activities on the contract renewal intention and the performances. This study was developed around domestic franchisees. An investigator visited business owners and manager level-employees, explained the purpose of the survey prior to the response, and the answers were directly written by hands. A total of 348 copies were used for the analysis. As the results of the analysis, first, financial support activities were found to have a positive(+) effect on transitional-based trust, calculative-based trust, and balanced-based trust. On the other hand, non-financial support activities were found to have a positive(+) effect on calculative-based trust, relational-based trust, and balanced-based trust, and there was no significant relationship on transitional-based trust. Second, the dynamic trust had a statistically significant positive(+) effect on inducing the contract renewal. Lastly, in the relationship between the dynamic trust and its impact on business performances, only transitional-based trust, and relational-based trust were found to have a positive(+) effect on the financial performances. In addition, relational-based trust showed a meaningful positive(+) relationship on the non-financial performances, and non-financial performace showed a meaningful positive(+) relationship on the re-contract intention. From the results, it can be concluded that the financial and non-financial activities for a win-win partnership between franchiser and franchisees are essential in not only forming dynamic trust but also boosting business performances as well as maintaining the business relationship. Thus, it suggests that building a win-win partnership can be promoted more efficiently by specifying activities best suitable for a particular relationship. In addition, a specific set of activities could be presented for establishing the level of trust that is formed in situations that vary depending on transaction risks and interdependency arising from having the transactional relationship based on the contract as the franchise industry features. Eventually, it is expected that this study can provide a way to promote the qualitative improvement of the franchise industry by identifying factors essential to establishing a sustainable win-win system and relationships that can improve the business performance of franchisees.

• Journal of Distribution Science
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• v.14 no.7
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• pp.101-114
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• 2016

Purpose - The aim of this study is to investigate the benefit-sharing activities. They affect contract renewal intention between franchisers and franchisees that are linked through a contract with the intention of building their relationship from the level based on dynamic trust. This study will show a new approach on qualitative growth and consolidation of competitive power and may well be able to suggest practical ways to strengthen directions in the field of franchise industries. Research design, data, and methodology - In this study, based on literature review, we separated logistical-supporting activities and non-logistical-supporting activities from benefit-sharing activities. We modeled how benefit-sharing activities influence contract renewal intention of franchisees by dynamic trust. In particular, considering the possibility of trading concepts and characteristics of trust between providers opportunistic behaviors was defined as variables, depending on the situation and dynamic characters reveal their relationship trust concept. That is, dynamic trust having the possibility of changing depending on opportunistic risks and interdependencies by Lewis & Weigert(1985, 2012) was classified into transitional-based trust, calculated based trust, relational-based trust and balance-based on trust. The total of 104 samples from domestic franchisees being with franchisees were collected by using a structural composed questionnaire. Results - The results are as following. Benefit-sharing activities in logistical supporting activities appeared to affect the multidimensional concept of transitional trust, calculated based on trust, relationship-based trust and balance based on trust dynamic trust with all-defined impact. Non-logistical supporting activities appeared to affect significantly the positive (+) to the dynamic trust concept except transitional trust. Lewis & Weigert(1985; 2012) have proposed a dynamic confidence calculated from relations within-based trust relationship based on trust appears to affect the significant positive (+) to the balance-based confidence transactions confidence mechanism of the system side in the verified relationship. Finally, a relationship based on trust and confidence in the balance based on the Influence of dynamic renewed confidence showed significantly affect the positive(+). In particular, the balance based trust showed the acts as a mediating factors between relational trust and confidence and renew calculated. Conclusion - From the above these results, the significance from this study is as following. First, the proposed activity is to share and validate the approach by identifying the potential in the relationship from the contract with building dynamic trust, and one of the ways from the franchise headquarters and affiliated merchants mutual growth through win-win cooperation in sharing activities. Next, the dynamic segmentation confidence to suggest the possibility can be broken down over the validity and reliability test for each concept. In addition, by identifying the relationship between the dynamic level of confidence granular multi-dimensional concept, to determine the level of trust with a dynamic relationship between risk and interdependencies can be possible in franchise industries. In order to maintain and develop their mutual relationship, franchise industries should propose confidence-building steps to promote their quality improvement.

• Management & Information Systems Review
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• v.36 no.2
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• pp.187-206
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• 2017

This study empirically investigated the direct and indirect effects of inter-organizational relationships control mechanisms (IRCM; prudent partner selection and complex contract) on the decrease of inter-organizational risks (i.e., relational risk and performance risk). The empirical results showed that prudent partner selection has a positive impact on the degrees of inter-organizational cooperation and the levels of inter-organizational information flow. The effects of complex contract on the inter-organizational cooperation and information flow were not significant. In the results of the decrease of inter-organizational risks, it was observed that inter-organizational cooperation has significant positive effects on the decrease of both relational risk and performance risk. It was found that partner selection only influences the decrease of performance risk. The impact of inter-organizational information flow on the decrease of inter-organizational risks was not statistically significant. The indirect effects of IRCM on the decrease of performance risk through inter-organizational cooperation were also empirically demonstrated. The significant impact of inter-organizational cooperation on the decrease of risks implies that high levels of collaborations among employees decrease the risk of opportunistic behavior as well as the possibility of low degrees of performance through cooperative efforts. According to the results of the effects of risks on supply-chain performance, only the impact of performance risk was negatively significant. This result points out that the low levels of performance cause delays in delivery and product launch, deterred production and delayed market response, and these deteriorated managerial activities necessarily decrease the degrees of supply-chain performance.

• Culinary science and hospitality research
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• v.19 no.4
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• pp.56-76
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• 2013

With a distinction made between contract breach and contract violation, this study develops a structural model that investigates whether each dimension of contract breach influences experience of a contract violation in the hotel industry. At the same time, the impact of such a violation on hotel employees' work outcomes has been studied. One hundred and seventy eight employees, who are employed in five star deluxe hotels participated in the study and a structural equation modeling(SEM) is employed. The result indicated that good working relationship, and training and development, a so called relational oriented breach, make positively significant impact on contract violation. Whereas, benefits and salary categorized as transactional oriented breach does not. Also, the suggested employee outcomes including high turnover intent, low job satisfaction, and person-organization fit have been influenced by contract violation. As a result, hotel practitioners need to clarify the contract items prior to employment and during employment and to prepare to react to unmet promises.

• Korean Journal of Culture and Social Issue
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• v.29 no.4
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• pp.617-636
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• 2023

The goal of this study was to explain the phenomenon of making efforts to overcome the need-reality collision as a cultural characteristic of Koreans. Specifically, we examined whether the behavior varies depending on the degree of relational agency in the situation where conflicts between one's needs and reality have occurred. To this end, a total of 217 participants participated in the online experiment, and the data of 156 participants were finally analyzed. After responding to the relational agency scale, the participants were exposed to a decision-making scenario in which conflicting factors existed. The scenario were about buying a house and making a wedding hall contract, and in each scenario, two important values were set to conflict with each other in the market. Participants read the scenario and entered the level they wanted for each value. After that, they encounter a situation in which he or she has not found the candidate site corresponding to the level he or she wants. Then, the participants responded to their willingness to make additional efforts themselves. As a result of the study, the degree of relational agency of the participants showed a positive relationship with the degree of additional effort. In addition, the degree of the desired level beyond the reality (expectancy discrepancy) showed a nonlinear (reverse U-shape) influence on the additional effort while controlling for individual difference. Furthermore, the interaction effect between relational agency and expectancy discrepancy was significant. Specifically, individuals with low agency did not have a significant relationship between the degree of expectancy discrepancy and the dependent variable, but individuals with high relational agency had a significant non-linear relationship between the degree of expectancy discrepancy and the dependent variable. Based on the results of the study, the role and function of Koreans' psychological characteristics (relational agency) in the scene of managing needs-reality collision were discussed.

• Journal of Distribution Research
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• v.1 no.2
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• pp.85-114
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• 1996

The franchise system has become more widely adopted by Korean distribution industries than before as foreign direct investment is liberalized in these industries. However, a number of problems has arisen between franchisers and franchisees recently. In this regard, the objective of this study is to identify problems arisen between franchisers and franchisees of convenience store operation. More specifically, this paper investigates how credibility between two parties is affected by the internal political structures, including bureaucratic structure and relational norms, and impact strategies of franchisers. The results of this study can be summarized as follows : Under rapidly changing channel environment, credibility between franchisers and franchisees tend to be characterized as the bureaucratic structure rather than relational norms. This result suggests that franchisees are more likely to recognize the power of franchisers in Korean convenience stores. This paper also shows that the adoption of coercive impact strategies decreases credibility and vice versa. The results of this paper suggest following implications. In order to have mutually beneficial relationship franchisers and franchisees have to share benefits and costs incurred by their convenience store operation, and to raise their ability to revise contract terms to accommodate changes in external environments. It is also important for the development of convenience store operation to construct more efficient relationship between franchisers and franchisees by adopting supportive norms rather than opportunistic ones.

• 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.

• Culinary science and hospitality research
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• v.22 no.7
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• pp.187-202
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• 2016

The purpose of this study was to better understand the influence of psychological contract breach in deluxe hotel culinary staff memeberss on job satisfaction and turnover intention. Based on a total of 280 samples obtained for empirical research, this study reviewed the reliability and fitness of the research model and verified a total of 4 hypotheses using the AMOS program. The hypothesized relationships in the model were simultaneously tested by using a structural equation model(SEM). The proposed model provided an adequate fit to the data, ${\chi}^2=334.152$ (p<.001), df=162, CMIN/DF=2.063, GFI=.893, AGFI=.861, NFI=.919, CFI=.956, RMSEA=.062. The model's fit, as indicated by these indexes, was deemed satisfactory, thus providing a good basis for testing the hypothesized paths. The SEM showed that relational contract breach (${\beta}=-.236$) had a negative significant influence on job satisfaction. In addition, job satisfaction (${\beta}=-.236$) had a negative significant influence on turnover intention. The moderating effects on career the formulated model was verified. Limitations and future research directions are also discussed.

• Journal of Distribution Science
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• v.14 no.8
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• pp.113-121
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• 2016

Purpose - This paper aims to examine the impact of buyer-supplier cooperation on suppliers' trust on buyers and the moderating role of buyers' governance mechanism between the sharing activities and trust. Research design, data, and methodology - An integrated research model is designed to materialize the research hypotheses. First, the impact of buyer-supplier cooperation is empirically analyzed by looking into how the sharing activities, in the field of information, resource, and knowledge, of buyer with supplier will affect the trust of supplier on buyer. Second, the moderating effect of contract-based governance mechanism of buyer is empirically analyzed. Third, the influence of trust on innovation performance of suppler is empirically analyzed. Results - Our findings provide supporting evidence for some of our hypotheses. First, all of the sharing activities are significantly influential, but in different degree, to trust of supplier. Second, contract-based governance mechanism of buyer have a moderating effect on the relationship between sharing activities and trust, positively in resource-sharing activities, negatively in information-sharing activities, not significant in knowledge-sharing activities. Third, supplier's trust on buyer positively affects supplier's own innovation performance. Conclusions - The strategies applied in supply chain management have become important as the competition among firms has shifted from competition between individual firms to competition between supply chains. A customer's sharing activities with its supplier may contribute to an increase in innovation performance. The supplier's information-sharing activity with its customer could affect its information-sharing activities with its main supplier. Cooperative activity with a partner in the supply chain is cultivated and amassed into relationship knowledge, and this study shows that the cooperative relational knowledge related to information-sharing activities enables firms to participate in sharing activities with their main suppliers. Increasing evidence shows that sharing various activities between buyer and supplier improves trust and performance outcomes, and enables firms to maintain competitive advantage. From the perspective of knowledge theory, external knowledge is becoming more important in firms' innovation activities, because innovative knowledge is acquired primarily through interaction with another organization. In addition, relationship learning could be an important tool in absorbing the supplier's core technology, information, expertise, and core competencies, increasing relational value.

• Asia-Pacific Journal of Business
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• v.11 no.2
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• pp.145-158
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• 2020

Purpose - To understand the growing interests in the professional temporary workforce, this study aimed to examine the different types of professional temporary workers and their different effects on creative performance. Design/methodology/approach - By sub-classifying professional temporary workers as boundaryless workers and transitional workers, this study developed propositions to provide comprehensive framework for directing meaningful topics for future research on professional temporary workers. Findings - This study suggested that two types of professional temporary workers may differ significantly in terms of their work efforts for getting approval or acceptance from the team members and for achieving creative contributions in teams. Specifically, drawing on expectance theory, social identity theory and resource-based theory, this study discussed the relationship between acceptance(task-oriented vs. relational-oriented acceptance), employment duration(short-term status vs. long-term status), contract security(volition being temporary worker) and creative performance for boundaryless workers versus transitional workers. Research implications or Originality - This study have implications for increasing our understanding of professional temporary workers by showing that creative performance may vary by employment types.