• 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.

• The Journal of the Korea Contents Association
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• v.9 no.6
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• pp.390-398
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• 2009

This study researches on the two types. First, Researched into important perception, relationship maintenance perception, relationship improvement, relationship recognition between franchisor and franchisee, Seconds, Researched into correlation between franchisor and franchisee at function achievement and relationship maintenance, conflict resolve and relationship maintenance, function achievement and compare with competitor. If franchisor with to experience the benefits of a strong franchise partnership, they must be willing to work on behalf of the partnership, perform roles that may extend beyond their traditional boundaries, and resolve their disagreement to the benefit of the partnership rather than to their own benefit. Strong partnerships require sacrifices on the part of both the franchisees and franchisors. However, These sacrifices have substantial payoffs in terms of franchisor performance as well as the performance of the relationship as a whole.

• The Korean Journal of Franchise Management
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• v.11 no.1
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• pp.45-60
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• 2020

Propose: The expansion of the delivery market in franchise business is a positive means of advertising and promotion for franchisees and contributes to substantial sales growth for stores. However, unrestricted and uncontrolled delivery sales and business activity of franchisee directly lead to encroachment of business territory between franchisees, resulting in increased operating costs of franchisees and conflicts between franchisees over rights and interests on franchise business. Moreover, in relation to the restrictions on the opening of competitors, it is incapacitating the law intent of prohibiting unfair encroachment of business territory, in the issue of the Fair Franchise Act in regard to guarantee of exclusive sales and business activity rights of franchisee. This study aims to point out major problems arising out of franchisee's infinite competition on delivery sales and business activity that are not restricted or controlled and then suggest legal supplements, policy tasks, and practical implications for improvement on the issues. Literature Review: In franchising business transactions, vertical restraints are associated with the exclusive territory establishment, control of transaction area, restriction of intangible sales and business activity of franchisee. Therefore, in the franchise business, it is necessary to take positive interpretation and application on e-commerce, the area of e-commerce, and delivery trading area and find proper and practical ways, by virtue of constructive attitude of each actor, to reduce the encroachment of business territory and various conflicts caused by unrestricted delivery trading area. Conclusion and suggestion: The finding shows that unrestricted or uncontrolled delivery sales and business activity of franchisees cause encroachment of business territory and many conflicts among franchisees. And this matters also weaken the legislation of the law on the protection of the business territory and can be negative factors that disrupt the protection of identity and sound development of the franchise industry in the long run. Therefore, in the franchise business, it is necessary to take positive interpretation and application on e-commerce, the area of e-commerce, and delivery trading area and find proper and practical ways, by virtue of constructive attitude of each actor, to reduce the encroachment of business territory and various conflicts caused by unrestricted delivery trading area.

• The Korean Journal of Franchise Management
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• v.9 no.4
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• pp.33-43
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• 2018

Purpose - In hotel industry, quality of leader-member exchange(LMX) relationship is very critical, because it impacts on the employee's work attitude and behaviors. Thus, this research examines the effect of LMX on employee loyalty in the context of hotel business and identifies mediating roles of work stressors, work role performance in the relationship between LMX and employee loyalty. This research suggests the guidelines for how hotel leaders should manage their employees and build employee loyalty that improve management and business performance. Research design, data, and methodology - This study tests the structural relationship between LMX, work stressors, work role performance, and employee loyalty. Work role performance divide into three sub-dimensions such as individual task proficiency, individual task adaptivity, and individual task proactivity. In order to examine the purposes of this research, research model and hypotheses were developed. All constructs were measured with multiple items developed and tested in the previous studies. The data were collected from 113 franchise hotel employees and were analyzed using SPSS 22.0 and SmartPLS 3 program. Result - The findings of this research are as follows. First, leader-member exchange(LMX) have significant positive impacts on work stressors, work role performance, and employee loyalty. Second, work stressors have significant negative impacts on work role performance and employee loyalty. Third, work role performance has significant positive impact on employee loyalty. Conclusions - The outcomes of this research indicate that hotel leaders should focus on the dyadic relationship with their employees how to improve employee productivity through LMX relationship. In turn, the quality of this relationship influences employees's work attitudes and behaviors. As a result of increasing job demands in hotel business which relies heavily on human resources, the hotel leader must find ways to prevent or reduce stressors and associated strains. If hotel employees perceive the high quality of LMX relationship, they improve their work role performance which influences loyalty. Therefore, the hotel leaders should develop monetary or non-monetary reward system for the employees and, make an efforts to have unique social exchange relationships with employees.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.7 no.2
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• pp.157-165
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• 2012

The specific gravity is heavily focused on the service industry in the economic development of domestic and overseas in these days. This will be predicted to increase persistently in the future society. Therefore the franchise system has been diffused as one of a management methods for these service industry. The franchise system is an advanced country's circulation system which has been populated in an advanced country. After the opening of circulation market, rapid growing trend has been showing on foreign country's popular brands in the local domestic market. So the franchise system has been largely focused on among the domestic manufacturing and the circulation companies. This study is to review how the management characteristics(headquarters' supports, communication, menu development, compensation) will affect the fairness perception of franchisee owner. The results of my study are as follows; It appeared that communication, menu development and compensation affected all the distribution fairness and the procedure fairness affirmatively.

• The Korean Journal of Franchise Management
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• v.8 no.4
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• pp.21-32
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• 2017

Purpose - In hotel business, how to build the relationship between leader and employees is very important, because it affects on the customer satisfaction. Thus, this research examines the effect of authentic leadership on job performance in the context of hotel industry and identifies mediating roles of organizational engagement, job satisfaction, and creativity in the relationship between authentic leadership and job performance. This study suggests the guidelines for how hotel companies should improve employee productivity and build a desirable organizational culture by presenting employee attitudes and behavioral models that explain the relationship between leaders and employees. Research design, data, and methodology - This study examines the structural relationship between authentic leadership, organizational engagement, job satisfaction, creativity, and job performance from the employee's perspective. Authentic leadership divide into four sub-dimensions such as self-awareness, balanced process of informations, internalized moral perspective, and relational transparency. In order to test the purposes of this study, research model and hypotheses were developed. All constructs were measured with multiple items developed and tested in the previous studies. The data were collected from 114 franchise hotel employees and were analyzed using SPSS 21.0 and Smart PLS 3.0. program. Result - The results of this study are as follows. First, authentic leadership have significant impacts on organizational engagement and creativity, but does not have impact on job satisfaction directly. Second, organizational engagement have significant impacts on job satisfaction and job performance, but does not have impact on creativity directly. Third, job satisfaction has significant impact on creativity, but does not have impact on job performance. Fourth, creativity has significant impact on job performance. Conclusions - The findings of this study indicate that hotel leaders should properly implement the authentic leadership and consider how to build a corporate culture to improve an organizational and employee productivity through authentic leadership. Due to the nature of the hotel industry, which relies heavily on human resources, hotel companies must manage their employees with authenticity in order to increase organizational engagement, job satisfaction, and creativity that affect hotel and employee productivity. If hotel employees perceive their leader's authentic leadership, they show more organizational engagement that increases creativity and leads to job performance. Finally, hotel employees can propose creative ideas only if they will be satisfied with their jobs. Therefore, the leader should develop non-monetary or monetary reward system for the employees and, make an efforts to foster creativity of the employees.

• The Korean Journal of Franchise Management
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• v.8 no.4
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• pp.33-43
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• 2017

Purpose - Previous studies about corporate image generally explore how corporate image affects a company's effectiveness from the consumer view. However this study attempts to explore the impacts of corporate image (reliability, friendly, corporate social responsibility, and innovation) on employees' altruistic behaviors in the franchise industry context. This study also examine whether organizational trust and affective commitment play a mediating role in the relationship between corporate image and employees' altruistic behaviors. The authors developed several hypotheses to achieve these purposes. Research design, data, and methodology - The data were collected from employees in food-service franchise companies located in Seoul, Korea. Among a total of 363 questionnaires distributed, 294(response rate of 81%) questionnaires were returned. After excluding 18 invalid respondent questionnaires, 276 valid questionnaires(response rate of 76%) were coded and analyzed using frequency, confirmatory factor analysis, correlations analysis, and structural equation modeling with SPSS 21 and SmartPLS 3.0. Result - The findings of the study are as follows: First, friendly, CSR, and innovation had positive effects on organizational trust, but reliability did not have a significant effect on organizational trust. Second, reliability and friendly of corporate image had positive effects on affective commitment, but CSR and innovation did have a significant effect on affective commitment. Third, organizational trust and affective commitment had positive effects on employees' altruistic behaviors. Conclusions - The aim of this study is to investigate the franchise corporate image as a significant influencing factor of employees' altruistic behaviors. The data were collected from only employees from franchising companies. The findings might vary from position to position. Future studies need to collect and compare data from managers. Future studies need to consider other variables that affect employees' altruistic behaviors. For example, leadership and market orientation might influence employees' attitude and behaviors. Also, future research should include other variables and it may have limitations in sample representative because of sampling franchise corporate in Seoul. Future studies will include franchise corporate all over the country. Future studies can also consider other variables (e.g., job performance and turnover intentions) to measure employee performance at the level of individuals and identify the impact of employee performance on business performance at the level of corporate.

• Culinary science and hospitality research
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• v.18 no.3
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• pp.108-120
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• 2012

The study sought ways to promote the global recognition of Korean food items. The Korean cuisine is one of the healthiest and well-balanced foods in the world. There are world-wide sauces in the United States, China, Japan, Thailand, Vietnam and Cambodia, Singapore, Indonesia, India, Australia, British, France and Italy. The above mentioned countries have good sauces and marketing strategies. In contrast to those countries, the internalization of Korean-style sauce has not yet been carried out. In this study, globalization plans for Korean cuisine through Korean-style sauces are divided as follows: promotion of the existing Korean-style sauces such as soybean sauce, Gochujang, Doenjang and Ssamjang, to chefs in foreign countries; development of derivative sauces, based on Gochujang, Doenjang, and Ssamjang; overseas promotion of Korean-style sauces through foreign chefs in Korea; and overseas promotion of the existing Korean-style sauces. Development of indigenous sauces by Korean food manufacturers and processors is one route in the promotion of Korean cuisine. Korean franchising restaurants could also aid in export of Korean food items. The food manufacturing/processing sectors must work in concert with the Korean government to globalize the Korean cuisine. The government should play a leading role in fostering star chefs, holding Korean cuisine seminars along with promotional efforts in foreign countries and foreign cooking schools (such as the 'Taste Korea' campaign).

• 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.