• Journal of Distribution Research
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• v.8 no.1
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• pp.47-67
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• 2003

The purpose of this study is to investigate three issues. First, we investigated four control mechanisms that might increase the franchisee's perception of franchiser commitment: a franchiser's TSIs, relational norms, monitoring, and qualification programs. Second, we proposed that appropriateness and efficacy of these control mechanisms in fostering franchiser commitment might be changed over the relationship life cycle. Third, we examined how bureaucracy and levels of franchiser's commitment related to relationship satisfaction. Through empirical analysis, research results indicate that a franchiser's TSIs and relational norms are positively associated with the franchisee's perception of franchiser commitment. In detail, what increase franchisee's perception of franchiser commitment in short-term relationship are franchiser's TSIs but relational norms are more important in the long-term relationship. In addition, the results show that franchisee's perception of franchiser commitment, participation and formalization are positively related to relationship satisfaction.

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

• Journal of Distribution Research
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• v.4 no.1
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• pp.161-183
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• 1999

The purpose of this paper is to investigate the fastfood franchise distribution channel in the Pusan area. To achieve the research objectives, hypotheses were developed through a literature review and an experimental methods wee employed. The major findings of this study are as follow; (1) franchiser's control and autonomy positively affected the affective commitment of franchisee. (2) franchisee's affective commitment positively affected the performance. (3) franchiser's control positively affected the performance of franchisee. Therefore, the efficient franchise system and relationship are required in the Korean distribution channel.

• The Journal of the Korea Contents Association
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• v.12 no.5
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• pp.404-414
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• 2012

B2B2C distribution channel between travel agencies, the travel franchiser's fairness become a big issue. So this study examines the effects of B2B transaction fairness between travel agencies on relationship-orientation and travel franchisee's performance. The research results are as follows: First, the most influential factor on the franchisee's performance was found as relationship-orientation factor. Second, among the 3 variable factors of B2B transaction fairness, the most influential factor on the franchisee's relationship-orientation was found as interactional fairness. And procedural fairness was found as next. Third, distributive fairness and interactional fairness were found to have a significant effect on franchisee's financial performance. And distributive fairness and procedural fairness were found to have a significant effect on franchisee's non-financial competency. Conclusively, excellent employees of travel franchiser' are the most valuable factors in B2B2C transactions due to the nature of the travel industry where human services are valued above everything else.

• Korean Journal of Human Ecology
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• v.21 no.2
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• pp.269-284
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• 2012

The main purpose of this study was to investigate factors affecting performance of casual wear franchise stores including franchiser support and social network between owners/managers. The study included the franchise stores of 55 casual wear brands located in Seoul, Incheon and Gyeonggi-do. In each store, one manager, owner or staff member with management responsibility was asked to fill out a questionnaire. A total of 184 questionnaires were collected with 165 used in the final analysis. The results showed that franchiser support consisted of educational support, marketing support and customer support. Path analysis indicated that only the educational support had a significant influence on the franchiser-franchise relationship, and in turn, the franchiser-franchise relationship positively influenced customer performance. Marketing support did not have a significant influence on the franchiser-franchise relationship, but did demonstrate a direct influence on customer performance. Social networks positively influenced customer performance, and there was significant a correlation between regions and social networks on customer performance. Sales performance was significantly influenced by customer performance.

• 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.

• Journal of Distribution Research
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• v.12 no.1
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• pp.65-84
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• 2007

The relation between franchiser and franchisee participated the franchise system was studied focused on brand for the correlation of relationship dissolution. Basically the relation among brand equity, internal brand, conflict and relationship dissolution based on brand on franchise system were investigated. The study of external factor and internal one of brand recognized by franchisee was conducted. The questionnaire was carried out for franchisee participated of national franchise system. The results showed that the brand external factor of brand transaction cost, brand equity and brand communication had influence on brand dissolution by the affection of brand identification and conflict classified as brand internal factor. In addition, brand internal reinforcement factor affected brand dissolution also. The structural causal inference between internal factor and external one was examined. Finally, the theoretical and managerial insight were suggested on the brand role for the consecutive relation as well as the limit of the study and future suggestion were included.

• Journal of Distribution Science
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• v.11 no.6
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• pp.51-58
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• 2013

Purpose - Nowadays, more than ever before, fierce competition, deep market segmentation, short product life cycles, and intensifying customer needs are putting increasing pressure on franchise's organizations to satisfy their customers by creating market-oriented relationships with and enhancing their market knowledge of them. One way that this might be achieved is by establishing deep ties (i.e., job commitment and job satisfaction) with their employees. Therefore, the purpose of this study is to examine how two important constructs of franchises' strategic efforts, LO (learning orientation) and RMO (relationship marketing orientation), affect job satisfaction, given the mediating role of job commitment. A franchise system comprises a set of contractual arrangements by which mutual obligations are performed. An organizational learning goal motivates employees to improve their abilities and master the tasks they perform. Relationship marketing, in addition, is to identify, establish, maintain, and enhance relationships with customers and other stakeholders to ensure that the objectives of all parties are met and this is done through the mutual exchange of promises. In a relationship marketing orientation, then, a firm creates, maintains, and enhances a strong relationship with its customers by sustaining long-term ties. This study was designed to examine the evolution of various theoretical approaches to franchise systems in order to determine whether theories about firms have significantly affected the franchise system. To this end, the authors developed a structural model consisting of several constructs. Previous studies have suggested that franchises' learning and relationship marketing orientations are important occupational immersion dimensions driving job satisfaction. Research design, data, methodology - We empirically tested a process of how the learning orientation and the relationship marketing orientation influence job commitment and job satisfaction using survey data drawn from 150 responding franchisees who were interviewed about their individual tendencies. Results - The results of this study provide empirical evidence that learning orientation, relationship marketing orientation, and job commitment all influence franchisees' job satisfaction. The results of this study indicate that, first, learning orientation had a significant effect on job satisfaction; second, relationship marketing orientation was positively related to job commitment; third, job commitment had a significant effect on job satisfaction. We also found that relationship marketing orientation and job satisfaction were mediated by job commitment. Conclusions - The findings of this study confirm the importance of learning orientation and relationship marketing orientation in maintaining a positive marketing relationship between franchiser and franchisee from to the perspective of the market. This indicates that franchiser support such as educational programs provided by the franchiser will help franchisees attain higher business management achievement and satisfaction. Moreover, a positive relationship between franchisees and consumers can be maintained through tie effects. Our findings also suggest that learning orientation plays a critical role in job satisfaction within the franchise system.

• Journal of Convergence for Information Technology
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• v.7 no.6
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• pp.259-265
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• 2017

This study reviewed the existing studies in order to set up a strategy that can achieve the trust and business performance of the franchisers, who are actually operating franchised business, breaking from the research trend centered around franchise headquarters and added the factors of the franchise headquarters' strategy for expanding franchises, including word-of-mouth communication and advertising & publicity and added the exercise of recruitment agency outsourcing, flagship store, recently utilized often as preceding variables to verify the causal relation between the trust of the franchiser and the business performance of the franchise. The implications of this study, it can be concluded that the government authority for the attraction of healthy franchises can continuously attract franchises and enter the market can continuously attract franchises by increasing the trust of the franchises, and powerfully investing and managing them for the effort through word-of-mouth marketing. It is expected that this study will be helpful in the establishment of a business strategy for forming a continuous relationship as well as the franchise head office's strategy for the recruitment of new franchises.

• International Commerce and Information Review
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• v.18 no.4
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• pp.333-358
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• 2016

This study investigates the relative effect of symmetric and asymmetric relationship between franchiser and franchisee on the relational outcome of franchise alliance in education industry. To verify the research model, 240 samples, which is related with eduction service, were collected, among which 200 were used for the analysis. The outcome suggests that the asymmetric relationship in an alliance negatively influenced the relational quality, among which asymmetric alliance-specific investments had the most significant effect. On the other hand, the relational quality was positively influenced when the alliance relationship was symmetric, especially when the interactional fairness was high. Furthermore, compared to foreign franchise, local franchise presented higher level of role and responsibility imbalance, along with higher likihood of franchisees' opportunistic behaviors.